Colorado-based marijuana company Schwazze signed an agreement to acquire Urban Health & Wellness, a cannabis retailer and cultivator in Denver, for $3.2 million.
The proposed deal includes Urban Dispensary as well as a 7,200-square-foot indoor cultivation facility with 2,700 square feet of canopy, according to a news release.
Under terms of the deal, Schwazze will pay $1.3 million paid in cash and $1.9 million in stock at closing.
The pending transaction is expected to close in the second quarter of 2022 after approval from the Colorado Marijuana Enforcement Division and local licensing officials.
Once the deal is complete, Schwazze’s portfolio will include 23 cannabis retail stores and four grow operations, according to the release.
The company also announced it has received final approval to list its common shares on the Toronto-based NEO Exchange.
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The common shares are expected to begin trading on the NEO on March 23 under the ticker symbol SHWZ.
Schwazze shares currently list as SHWZ on the U.S. over-the-counter markets.