For the sixth time in three months, Denver-based Medicine Man Technologies announced its impending take over of another Colorado cannabis company.
Dabble Extracts, a Colorado Springs-based edible and extraction company, is the latest of the marijuana businesses to get bought out by the massive company, according to a news release from Medicine Man. Terms of the sale are a combination of Medicine Man stock and cash valued at about $17.25 million, or 1.25x anticipated annual revenue of $13.8 million. The deal is expected to close during the first half of 2020.
“This agreement will bring the manufacturer of numerous award-winning cannabis edibles and extracts under our umbrella, with existing distribution in close to 600 Colorado-based dispensaries,” said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. “These manufacturers are the creators of branded products that are market segment leaders and have won numerous awards in a multitude of categories and will further establish our leadership in Colorado. Reaching critical economies of scale, while offering depth and breadth in all cannabis product segments, is incredibly important for our business model.”
Not to worry, though. The Dabble Extracts brand will live on, according to Westword.
“Dabble’s not going anywhere,” Josh Hini, founder of Dabble Extracts, told the Denver alt-weekly. “I’m not cutting and running. I’m here to stay — and dabble.”