Cannabis Co. Schwazze Acquires Drift For $3.5M, Adds Two Pot Shops In Boulder

Cannabis company Schwazze SHWZ is purchasing BG3 Investments, LLC, which is doing business as Drift and operates two marijuana retail stores in Boulder, Colorado.  

Under the $3.5 million deal, the Denver-based company, previously known as Medicine Man Technologies Inc, is also acquiring the assets of Black Box Licensing, LLC, which includes particular intellectual property.

The price tag includes $1.9 million in cash and $1.6 million in common stock.

The acquisition brings Schwazze's retail footprint in Colorado to nineteen. 

The deal is expected to close during the third quarter of 2021, following the receipt of the Colorado Marijuana Enforcement Division and local licensing approval.

"We look forward to adding these dispensaries to our portfolio," said Justin Dye, Schwazze's CEO on Tuesday. "The company remains focused on bringing excellent customer experiences to all areas of Colorado, and we are excited to bring that experience to our customers in Boulder."

Acquisition Of Star Buds Dispensaries

Schwazze acquired a total of nine dispensaries year to date. Since last year, the company has been acquiring Star Buds dispensaries across the state after announcing a deal to acquire its 14 Colorado locations in June 2020, including 13 Star Buds stores, plus one cultivation center.

After acquiring the first six Star Buds dispensaries in December for or around $37.1 million, Schwazze acquired an additional two stores in February for $9.3 million and five dispensaries worth $72.3 in March.

Earlier this month, the company boosted its cultivation footprint and will supply Star Buds dispensaries with premium cannabis.

Schwazze agreed to purchase 34 acres of land in Huerfano County held by Southern Colorado Growers, which includes outdoor cultivation capacity, indoor greenhouse, hoop house as well as cultivation facilities and equipment for $11.3 million in cash and stock.

Photo by Kym MacKinnon on Unsplash