DENVER – January 17, 2019 – Today Medicine Man Technologies (OTCQX: MDCL), a leading
consulting, intellectual property licensing and products company in the cannabis industry, has
announced a binding agreement that is expected to lead to the near-term acquisition of the
Colorado licensee, Medicine Man Denver (MMD). MMD is one of the pioneering operators that
helped establish the burgeoning cannabis industry over the past decade, with brand recognition
far beyond its immediate market. Its operations include one of the largest indoor cultivations
in the state of Colorado as well as four retail locations with combined sales that have kept it in
the top tier of operators in the state.
MDCL plans to pursue other acquisitions and partnerships with similar, mature industry leading
operators, in the birth place of the legal cannabis industry and beyond
These planned and prospective transactions are helping to realize the promise of MDCL’s vision
to establish an industry-leading, fully-integrated cannabis company that delivers resources to
entrepreneurs in the industry and soon, products to consumers.
“Building upon MMT’s established expertise as consultants that have helped win licenses and
establish operations in 17 states with over 100 clients, these moves are keeping the promise of
Medicine Man Technologies’ vision to become an operator in this space,” says Andy Williams,
Medicine Man Technologies’ Chief Executive Officer. “Once officially brought into the fold,
MDCL’s annual revenue run rate will exceed $40 million. We couldn’t be more excited about
what the future holds.”
Because MMD is a holder of cannabis licenses issued by the Marijuana Enforcement Division
(MED) in the State of Colorado, the acquisition of MMD will require the passing of the
currently-introduced Colorado HB19-1090 (https://leg.colorado.gov/bills/hb19-1090) which is
currently working its way through the legislature, with support of the current governor. If
HB19-1090 becomes law, it will allow for public company ownership of Colorado-licensed
cannabis businesses.
The final acquisition will require the approval of the MED, as well as local city and county rules
concerning the transfer and sale of ownership interest. Due to current legal restrictions, rather
than acquiring a direct right to purchase the entity, MDCL has agreed to license MMD’s
company brand globally and issue warrants that can only be exercised by the exchange of
equity of MMD for common stock of MDCL at an agreed upon value subject to approval by the
MED and the warrant holders electing to exercise.
MDCL had previously disclosed in its SEC filings of its intent to acquire MMD, as several persons
connected to MDCL are also owners of MMD, including Andy Williams, current CEO of MDCL.
MDCL has obtained independent valuations of the entities to be acquired. The relevant term
sheet provides that the value of the shares to be issued to each owner of the entities to be
acquired shall be consistent with these independent valuations.
About Medicine Man Technologies, Inc.
Established in March 2014, the Company secured its first client/licensee in April 2014. To date,
the Company has provided guidance for several clients that have successfully secured licenses to
operate cannabis businesses within their state. The Company currently has or has had active
clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas,
Pennsylvania, Florida, Ohio, Maryland, New York, Oklahoma, Massachusetts, Puerto Rico,
Canada, Australia, Germany, and South Africa. The Company continues to focus on working
with clients to 1) utilize its experience, technology, and training to help secure a license in states
with newly emerging regulations, 2) deploy the Company’s highly effective variable capacity
constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate
the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up,
4) stay engaged with an ever expanding team of licensees and partners, all focused on quality
and safety that will “share” the ever-improving experience and knowledge of the network, and 5)
continuing the expansion of our Brands Warehouse concept through entry into industry based
cooperative agreements and pursuing other acquisitions as they prove suitable to our overall
business development strategy.
Safe Harbor Statement
This press release may contain forward-looking statements which are based on current
expectations, forecasts, and assumptions that involve risks and uncertainties that could cause
actual outcomes and results to differ materially from those anticipated or expected, including
statements related to the amount and timing of expected revenues and any payment of dividends
on our common and preferred stock, statements related to our financial performance, expected
income, distributions, and future growth for upcoming quarterly and annual periods. These risks
and uncertainties are further defined in filings and reports by the Company with the U.S.
Securities and Exchange Commission (SEC). Actual results and the timing of certain events
could differ materially from those projected in or contemplated by the forward-looking
statements due to a number of factors detailed from time to time in our filings with the Securities
and Exchange Commission. Among other matters, the Medicine Man Technologies may not be
able to sustain growth or achieve profitability based on many factors including, but not limited
to, general stock market conditions. Reference is hereby made to cautionary statements set forth
in the Company’s most recent SEC filings. We have incurred and will continue to incur
significant expenses in the expansion of our existing and new service lines, noting there is no
assurance that we will generate enough revenues to offset those costs in both the near and long-
term. Additional service offerings may expose us to additional legal and regulatory costs and
unknown exposure(s) based upon the various geopolitical locations where we will be providing
services, the impact of which cannot be predicted at this time.
