Medicine Man Technologies Closes $1.54 M Equity Raise and Schedules Repayment of Remaining Convertible Debt
DENVER, CO, December 19, 2017 — Medicine Man Technologies Inc. (OTCQB: MDCL), one of the United States’ leading cannabis branding and consulting companies today announced the closing of an equity raise sold only to accredited investors that yielded aggregate proceeds of $1.54 million. The Company issued a total of 1,448,140 units priced at $1.0665 per Unit. Each Unit consisted of one share of common stock and one eighteen-month warrant exercisable to purchase one share of common stock at an exercise price of $1.33 per share. There were no broker commissions, placement agent fees, or other fees paid in connection with this offering. Medicine Man Technologies plans to use a small portion of the proceeds from the offering to repay its remaining convertible debt.
Jonathan Sandburg, Medicine Man Technologies’ Chief Financial Officer stated, “We are pleased to have completed this transaction with accredited investors and to have retained full raise proceeds as a result of not utilizing intermediary agents. With this financing complete, we have sufficient capital to retire our remaining convertible debt totaling approximately $251,000 at year end as well as to invest in our near-term growth initiatives well into 2018 as we work achieve sustainable profitability.”
During 2017, Medicine Man Technologies has grown its client base substantially both in the United States and internationally, completed and integrated three acquisitions, and grew its revenue by more than 300 percent over the first three quarters of the year compared with the same period in 2016. We have also expanded our team to 20 full-time team members, compared to just 4 at this same time last year.
Brett Roper, Medicine Man Technologies’ Chief Executive Officer
Most importantly, our successful evolution has included the launch of several new products and services including Cultivation Max, which we expect to drive recurring revenue growth opportunities and enable the continued delivery of high quality services to our expanding client base. I am very pleased with our performance thus far in 2017, and look forward to even stronger performance in 2018 and beyond
About Medicine Man Technologies, Inc.
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 63 active clients in California, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, Massachusetts, Puerto Rico, Australia, Canada, Germany, and South Africa. We continue 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 its Brands Warehouse concept.
