It’s a big loss to the company’s cultivation assets. This July, Los Sueños Farms terminated a deal with Schwazze.
COLORADO HARVEST COMPANY SQUARE FEET LICENSE
Schwazze owns other odds and ends, too, including two cannabis-infused product brands, Quiq and Nove and MedPharm Holdings, a cannabis research firm, which was just awarded the first medical cannabis research and development license in Denver.īut not every deal has been a success. In total, Schwazze owns six cultivation sites and four processors. Both of those companies came with cultivation licenses as well. They’re geographically diverse, including Root Rx’s six shops in the state’s ski towns and four Medicine Man-branded shops in the Denver and Boulder metro areas. The acquisition brings twenty-seven shops under Schwazze. Star Buds operates thirteen shops, four in Denver and the rest spread across the Front Range. This June, Schwazze acquired Star Buds, its biggest adult-use retail chain yet, in a cash and stock deal valued at $118 million. Within a week of HB 1090’s passage in May 2019, the company was in contract with MesaPur, the parent company to four shops known as Mesa Organics and the processor Purplebee’s. The firm committed $20 million to Williams’ company in 2019.īut even before Dye moved in as CEO, Williams was scooping up companies with Dye’s investment. The move made way for Justin Dye, of the Florida-based private equity firm Dye Capital. Medicine Man’s founder, Andy Williams, stepped down as CEO in December 2019 and became vice chairman and president before fully departing the company this March. (The term “schwazze” comes from the company’s trademarked “Three A Light” technique for increasing the yield of indoor cannabis grows.) In addition to its retail shops and cultivation and processing sites, it owns a nutrient line, a consulting firm, and intellectual property for a growing method. Former Governor John Hickenlooper, who is running for Senate in the Colorado Democratic primary, vetoed that bill in 2018. “Schwazze,” Dan Pabon, the company’s general counsel and chief government affairs officer told Cannabis Wire, “was designed from its inception to be a publicly traded vehicle should the law ever change.” Pabon is a former state representative and sponsored the first attempt at opening up the cannabis market, HB 1011. The Department of Revenue’s Marijuana Enforcement Division approved its application this March. Schwazze-known until this April as Medicine Man Technologies-was the first Colorado cannabis company to become publicly traded.
Only Colorado Christian University and the City of Commerce City lobbied against the bill.
Dispensaries such as Buddy Boy, Lightshade, and The Green Solution also pressed hard for the bill’s passage. Both Schwazze and LivWell hired lobbyists to push for the bill as it made its way through the legislature. Before this law passed, Colorado businesses felt they couldn’t attract opportunities with national investors because of the state’s strict ownership requirements.Ĭannabis companies in Colorado lobbied aggressively for HB 1090. The result has been consolidation and an injection of capital into the cannabis industry. House Bill 19-1090, which went into effect in November 2019, repeals the restriction on publicly traded companies holding a marijuana license and also lets qualified privately held investment companies hold a license. Combined, as of this month, they own nearly one in twelve adult use dispensaries in Colorado. As a result of the law, the state’s two biggest companies, Schwazze and LivWell, have been expanding rapidly. Big Colorado cannabis companies are expanding their footprints under a new law that opens up the industry to out-of-state investors.
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