Schwazze To Expand Its Presence In New Mexico Via Acquisition Of Everest

Medicine Man Technologies, Inc., operating as Schwazze, SHWZ SHWZ has signed definitive documents to acquire certain assets of Sucellus, LLC, pursuant to which the company will manage Everest Apothecary, Inc., a New Mexico not-for-profit corporation. The proposed transaction includes retail dispensaries, cultivation, and manufacturing facilities.

The consideration for the proposed acquisition is $38 million and will be paid in a combination of cash, a four-year seller note and company common stock. The acquisition is expected to close in the second quarter of 2023, upon receipt of approval from the New Mexico Regulation and Licensing Department.

Established in 2016, Everest is a New-Mexico-based licensed medical and recreational cannabis provider that consists of 14 dispensaries, one cultivation facility and one manufacturing plant. The dispensaries are located in Albuquerque, Santa Fe, Las Cruces, Los Lunas, Sunland Park, Belen, and Texico. Everest's approximately 16,000 square feet of cultivation and 8,500 square foot manufacturing facility are located in Albuquerque.

This acquisition increases the company's retail consumer base and furthers Schwazze's growth efforts in the New Mexico market, which upon transaction closing will bring the company's total number of New Mexico dispensaries to 32 with over 450 Schwazze employees.

"This planned acquisition shows our commitment to the company's super-regional cannabis growth strategy to go deep in select markets," stated Nirup Krishnamurthy, president of Schwazze. "The Everest brand is a perfect complement to our existing retail brand in New Mexico, R. Greenleaf. Each serves a unique demographic, and we will continue to operate both retail banners in the state. By utilizing Schwazze's operating playbook, we fully intend to support the Everest team and its customers by delivering outstanding service, great selection and quality products throughout the state of New Mexico."

Photo: Benzinga edit with photos by jarmoluk and lindsayfox on Pixabay

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