Schwazze, a Denver-based vertically integrated cannabis operator, said it has acquired the five remaining Star Buds retail outlets in Colorado for $72.3 million, including $27.5 million in cash.
With the acquisition, Schwazze, formerly Medicine Man Technologies, now owns and operates all 13 Star Buds locations in Colorado.
The terms of the latest acquisition included $26.9 million in sellers’ notes and $17.9 million in preferred stock.
In 2020, those 13 stores generated roughly $28 million in net income on $70 million in revenue.
Schwazze previously acquired six Star Buds stores in December 2020 and two in February 2021 – with all 13 outlets pursuant to a June 2020 definitive agreement.
Schwazze’s retail footprint in Colorado now totals 17 retail outlets.
“We are excited to have completed our acquisition of Star Buds Colorado, a highly respected, innovative and trusted retail operation characterized by high quality products and its budtenders’ commitment to customers and cannabis expertise,” Justin Dye, Schwazze CEO, said in a news release.
Some of Schwazze’s expansion plans were derailed last year because of tight capital markets and the COVID-19 pandemic.
