Two prominent Colorado cannabis consulting firms combined Tuesday when Medicine Man Technologies announced it has agreed to acquire Denver Consulting Group.
Denver Consulting Group (DCG) valued the deal at $3.5 million.
Under the agreement, publicly traded Medicine Man Technologies (OTCQB: MDCL) will issue 2,258,065 of its shares to members of Denver Consulting Group, according to a news release. Shares of Denver-based Medicine Man closed Tuesday at $1.58.
The transaction continues a trend of mergers and acquisitions in the maturing marijuana industry in the past year.
In March, the consultancy closed on a deal to acquire Pono Publications, which essentially produces a growing guide, and Success Nutrients, a line of nine cultivation nutrients. Pono and Success Nutrients were founded by grower Josh Haupt, who now consults with Medicine Man.
Haupt’s presence at Medicine Man was one reason DCG liked the deal, according to Greg Gamet, Denver Consulting Group’s managing partner.
DCG Relief recently opened an office in Portland, Oregon, and is launching a California branch, which Gamet will lead.