Schwazze Raises $34M To Support Purchase Of Star Buds Stores

Schwazze, previously known as Medicine Man Technologies Inc. SHWZ has raised $34 million in financing.]

The Colorado company completed the latest tranche of preferred equity, bringing its total raise to $56 million.

CRW Capital Cann Holding LLC, an affiliate of Dye Capital, led the latest investment round alongside other investors.  

Schwazze managed to collect $71 million in financing since December, including the latest round.

Under the private placement, the company issued and sold a total of around 56,000 Series A Cumulative Convertible Preferred shares with a price of $1,000 per share.

The securities were presented by DelMorgan Group LLC and the Benchmark Company LLC.

Schwazze also completed a debt financing of $15 million, out of which $5 million will be funded as part of an undisclosed purchase.

Altmore Capital’s partner presented the company with up to $15 million in debt, set to mature in four years.

The loan carries a 15% annual interest, and Schwazze is supposed to pay the principle in its third year.

“This funding enables our team to close on the remaining Star Buds stores in Colorado and provide additional capital for growth," Schwazze CEO Justin Dye said. "Our team members and investors are focused on taking care of our loyal customers and positioning Schwazze as one of the leading cannabis seed-to-sale companies in Colorado. We look forward to building a purpose-driven, innovative company in Colorado and beyond."