Denver, CO, Sept. 20, 2018 (GLOBE NEWSWIRE) — Denver, Colorado – September 20, 2018. Medicine Man Technologies, Inc. (OTCQB: MDCL) (the “Company”), one of the country’s leading cannabis consulting service companies today announced it has completed the acquisition of the Big Tomato retail supplier business effective September 17, 2018.
The Big Tomato retail business has been open since 2001 and is expected to generate approximately $2.5M in revenues this year. The business carries a wide variety of grow related products and will also be acting as another distribution hub for the Company’s Success Nutrients product line. Located at 695 Billings Street in Aurora, CO, it also has an online presence (www.bigtomato.com) that the Company expects to integrate into its other web-based elements. The Company has already begun to expand the Big Tomato wholesale presence to its client base in Colorado and throughout the US.
The terms of the acquisition include the issuance of 1,933,329 shares of the Company’s common stock, representing an agreed upon valuation of $3 million. In addition, the Company will pay approximately $307,000 for inventory in cash, including the assumption of approximately $250,000 in inventory accounts payable.
Jeremy Stout, Big Tomato’s Managing Partner stated, “My partners and I are very excited about this new opportunity to align ourselves with Medicine Man Technologies, Inc. We all believe we can provide the Company’s clients with competitive pricing for their nutrient products that will continue to meet their respective specifications through our established relationships in the cannabis industry. We are looking forward to working with Joshua Haupt and his team to expand our business as well as the value of Medicine Man Technologies, Inc.”
As we continue to expand our client base we remain focused on providing our clients with the best products and pricing from a large number of proven suppliers. We expect that this will be enhanced as a result of our acquisition of Big Tomato, including purchasing relationships we will be focusing on best pricing for our as well as their existing retail clients.
Joshua Haupt, the Company’s Chief Operating Officer
About the Big Tomato Retail Store
Two JS LLC, dba The Big Tomato has been the leading supplier of hydroponics & indoor gardening supplies in Denver, Colorado and the surrounding communities since May 2001. It has established a reputation as a store that is fully stocked, has great pricing, has a very knowledgeable staff, and has been around since before the “hydroponics boom”. It has continued to provide thousands of indoor gardeners and commercial growers with top quality hydroponic supplies at the best prices. The store maintains an extremely large inventory of hydroponic and gardening supplies. Bit Tomato’s new website, TheBigTomato.com was created for the discriminating indoor gardener who is looking for reliable gardening help and customer service while at the same time enjoying the great savings on the products they want to purchase. The website is supported by the company’s brick-and-mortar store located in Aurora, Colorado. Every sales staff member is an experienced grower that is trained to service customers and answer any questions. Products include indoor gardening products, grow boxes, grow lights, hydroponic systems, ballasts, bulbs, nutrients and additives, and other high-end hydroponic items.
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 or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, 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 its Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to overall business development strategy.