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Medicine Man picking up Green Equity
Posted on Thursday, 13 June 2019 14:37
Colorado-headquartered marijuana products player Medicine Man Technologies has entered into binding term sheets to acquire Colombian peer Green Equity.
Under the terms of the deal, the buyer will pay USD 5.40 million for the business, comprising USD 450,000 in cash and USD 4.95 million in stock.
As yet, it is not clear when completion of the deal can be expected to occur.
Medicine Man Technologies chief executive Andy Williams said: "This pending acquisition secures our strategy for international growth, beginning with our entry into Colombia.
“We believe that our early entry into the market will allow us to further our goal of becoming a major global player in the cannabis industry and create tremendous value for our shareholders."
Medicine Man is no stranger to the acquisition trail, having agreed to pick up Denver-headquartered phyto-pharmaceutical developer MedPharm Holdings for an undisclosed consideration in mid-January.
It also recently took over cannabis farm and cultivation facility Los Sueños and family-owned dispensary Purplebee’s.
Medicine Man Technologies provides consulting, retail pharma-grade products and turnkey products for cannabis cultivators.
The company’s customer base spans 18 US states and seven countries.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 793 deals targeting pharmaceutical preparation manufacturing companies announced worldwide since the beginning of 2019.
The largest of these saw Bristol-Myers Squibb agreeing to acquire Celgene for USD 74.00 billion back in early January.
This was significantly larger than the second-placed transaction – a USD 5.30 billion deal in which Novartis signed on the dotted line to pick up the assets of Xiidra in early May.
Other companies in the sector to have been targeted since the beginning of January include AstraZeneca, Bayer, Brammer Bio MA and IFM Tre.
© Zephus Ltd