Medicine Man Technologies announces new acquisition after major management changes
Medicine Man Technologies (OTCQX:MDCL), a leading cannabis consulting firm and products company, announced their intentions to acquire MedPharm Holdings LLC, Colorado’s first licensed research facility, on Wednesday. The acquisition will close in this first fiscal quarter of 2019, and it could give Medicine Man the leverage they need to become a global competitor in the cannabis market.
A multifaceted marijuana stock
On top of a successful chain of dispensaries, Medicine Man also provides consulting services across the globe for licensing, dispensary training, facility design, and cultivation technology. With the acquisition of MedPharm, the pot stock will not only have the opportunity to establish a strong foundation in the extraction technologies niche, but they will also bulk up their portfolio with even more cannabis research licenses. MedPharm already possesses the only state cannabis research license in Colorado and is awaiting approval for a federal research Bulk Manufacturer license for cannabis and cannabis dosing. Combining their consulting experience with MedPharm’s research and extraction capabilities, Medicine Man hopes to fill in some of the gaps in their current product offerings.
“This is a significant step in becoming a dominant global operator, filling a key gap in our current products and services,'' Medicine Man CEO Andy Williams said in a statement.''We have had clients in 17 states and seven countries, this highly scalable product line allows us to leverage those existing relationships worldwide.''
Along with advanced research capabilities and new product development, Medicine Man Technologies is also looking to strengthen their international expansion with this acquisition. According to the press release, MedPharm Holdings is in the process of building out an expansion plan in South America and will be “evaluating opportunities in other continents.” This provides a huge global opportunity for Medicine Man, who currently has licensed producers in four states. There are no details yet in regards to what these international plans will be, but investors can expect more news to come when the acquisition officially closes in the coming weeks.
Major management changes in December
News of this acquisition comes in hot after Medicine Man Technologies made major management changes back in December. On December 4, the company appointed its co-founder Andy Williams as Interim CEO. Two weeks later, the company appointed a new COO as well when they announced that Joe Puglise, formerly from The Beekman Group and iHeartMedia, would be taking on the position.
“As we continue to experience dramatic growth across the business, including entering new verticals that will enable to us to transition into a ‘plant touching' business with significant room for growth, Mr. Puglise will fill a critical role ensuring that the Company continues to operate in the most efficient manner,” Williams said of their newest employee.
Mr. Williams is already CEO of the Medicine Man chain of dispensaries, and he is also a founding partner of MedPharm Holdings. This week’s acquisition announcement should not come as a surprise to investors, but it does bring Williams’ business and retail experience together with his investments in cultivation and pharmaceutical-grade cannabis research. According to the December 4 press release, Williams has been “investing heavily” in the future of cannabis research, and his dedication will show in the future developments of Medicine Man Technologies.
Choosing to focus on cannabis research and consultation rather than trying to directly compete with some of the larger license producers in this industry could help Medicine Man stand out among the other pot stocks. But as Wall Street progresses ever forward, the competition in cannabis is only going to get tougher. Investors will have to decide whether or not they are willing to wait around on expansion plans and federal research license approval.