PRESS RELEASE - Medicine Man Technologies, Inc. has announced that the company has entered into a binding term sheet to acquire Colorado-based Dabble Extracts, an award-winning cannabis concentrate company that specializes in processing medical and recreational marijuana into premium-grade extracts.
Under the terms of the term sheet, the company will pay $3,750,000 for Dabble Extracts. The purchase price will consist of $750,000 in cash and 996,678 shares of common stock priced at $3.01/share, which is the average closing price of the company's stock for the five trading days prior to Aug. 6, 2019. The terms can also be referenced in the 8-K, which outlines the closing conditions. The obligations of the company and Dabble Extracts under the term sheet are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
"The proposed acquisition of Dabble Extracts will further enhance our product portfolio, as it will bring the expertise and unique extraction capabilities necessary to create high-quality cannabis concentrates in the form of shatter and wax products," said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. "Josh marks the fifth industry pioneer that we have announced in the span of three months to come on board, which is a testament to our vision in bringing the best and brightest to join forces and compete in a rapidly changing market. His background and mastery as an extraction technician will help us create, produce and distribute a superior portfolio of products. As a market leader, we believe it is incumbent for the Company to offer a comprehensive and exceptional product offering in all market segments, and Dabble Extracts' award-winning product line and unique and proprietary extraction process certainly helps us meet this goal."
"We have essentially pioneered our own extraction process and have grown through a grassroots approach similar to that of Andy's experience," said Josh Hindi, founder of Dabble Extracts. "The team at Medicine Man Technologies shares our vision for the long term, and this accelerates our growth trajectory by creating a complementary approach at the forefront of the explosive opportunity in the cannabis industry. Our shatter is of the highest quality, and we are one of the top producers today for concentrates, based on the numerous awards we've received. We're excited to join the team and believe this enables us to take a huge step forward in our business as we combine our technical capabilities with the critical distribution capabilities that should allow us to go national and international in the future."