As cannabis-based acquisitions continue to be the trend in the market and likely for the next couple of years, many companies have begun to venture away from cultivation and processing focused companies towards other areas in the market. Denver-based Medicine Man Technologies (OTCQX: MDCL) announced today that it had signed an agreement to acquire MedPharm Holdings, an intellectual property development company and a known player in the cannabis research and development space.
The announcement marks Medicine Man’s entry into the cannabis R&D world, as MedPharm has a history of extraction expertise along with producing pharmaceutical-grade dosage cannabis doses while maintaining top manufacturing practices. MedPharm currently owns three popular brands. BATCH, a high-quality cannabis extract for cannabis consuming connoisseur, Become, a pure cannabis concentrate marketed to the female demographic, and Aliviar, a line more focused on treating medical conditions.
“This planned acquisition of MedPharm Holdings, LLC brings world-class processing, research and pharmaceutical-grade products to the Medicine Man Technologies’ portfolio. This is a significant step in becoming a dominant global operator, filling a key gap in our current products and services,” said Medicine Man CEO Andy Williams. “We have had clients in 17 states and seven countries, this highly scalable product line allows us to leverage those existing relationships worldwide.”
At the same time, MedPharm currently owns two licenses. One of which is in Colorado, the only cannabis research license in the state, with the other cannabis license being in Iowa. The transaction is expected to come into effect in Q1 2019. In response to the news, Medicine Man shares surged 11.9 percent today, in contrast to the Horizon Marijuana Life Sciences ETF which dropped 3 percent.
Medicine Man Technologies Company Profile
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. – Medicine Man Technologies
MedPharm Holdings Company Profile
MedPharm is a phytopharmaceutical and intellectual property holding company that has been created to develop innovative cannabis products, using accepted pharmaceutical formulation techniques, to reliably produce identifiable and replicable dosage forms for human use. – MedPharm Holdings
