Schwazze, (OTCQX:SHWZ) (NEO:SHWZ) closed the transaction to acquire substantially all the assets of Urban Health & Wellness, Inc. The transaction includes the adult use Urban Dispensary, located at West 38th Avenue and Clay Street, in Denver's vibrant Highlands neighborhood as well as a 7,200 square foot indoor cultivation facility (2,700 square feet of canopy) located in Denver, Colorado. This purchase continues Schwazze's aggressive expansion in Colorado and brings the company's total number of Colorado dispensaries to 23 and grow facilities to four. The acquired assets included state and local retail marijuana and marijuana cultivation licenses supporting the adult use dispensary and indoor cultivation facility acquired in the transaction.
"Urban's strategically located dispensary and grow facility will be excellent additions to our expanding portfolio of assets in Colorado. Delivering our brands and our excellent customer service into new neighborhoods is a Schwazze hallmark as we continue to go deep in Colorado and New Mexico." stated Nirup Krishnamurthy, Schwazze's COO.
The consideration for the acquisition was $3.2 million, which was paid $1.3M in cash and $1.9M in company common stock upon closing, of which $288,000 of this common stock consideration was held back by the company for indemnification claims. The common stock consideration was split 65% to 35% between the two equityholders of Urban. At closing, each equityholder that received common stock consideration was required to execute a standard lock-up agreement providing for limitations on resale of the stock consideration received. There were no finder's fees or similar arrangements in connection with the transaction.
Photo: Courtesy of CNW Group/Medicine Man Technologies, Inc.
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