Denver-based Schwazze closed on a deal to acquire marijuana cultivation operation Southern Colorado Growers (SCG) for $11.3 million.
With the acquisition of the Huerfano County grow in southern Colorado, Schwazze will add 34 acres of land with outdoor cultivation capacity as well as indoor, greenhouse and hoop house facilities and equipment, according to a news release.
Schwazze spent $6.8 million for the business and $4.5 million for the real estate, paying $5.9 million in cash and $5.4 million in stock upon closing.
Schwazze plans to build out the cultivation capacity over the next year.
The move fits with the company’s strategy by creating an in-house flower source to supply its Star Buds dispensaries and PurpleBee’s extraction operation.
“The addition of SCG to our portfolio is expected to provide a positive margin impact for Schwazze,” Justin Dye, Schwazze’s CEO, said in the release.
Schwazze, formerly known as Medicine Man Technologies, trades on the over-the-counter markets as SHWZ.