In late 2012, Andy Williams was introduced to Brett Roper and subsequent discussions revealed the substantial value of creating a new company that could "house" as well as deliver the substantial experience Medicine Man Denver had acquired over the past five years. In the spring of 2013, these two uniquely qualified businesspersons began work on what was then known as Version 1.0 of a licensing manual that was envisioned to include a unique "seed-to-sale" documentation of the business that could then become the underpinnings of any new business' entry into this space. As of this date we are now on Version 31 which is comprised of over 400 pages and growing.
In April of 2014, the business venture incorporated in Nevada as a 'C' Corporation under the name of Medicine Man Technologies, Inc. Since this new business is based in the advisory role space and not in the actual growing and distribution of the product, the company is currently in the process of becoming a public company as it continues to generate revenues through sales of consulting and licensing services. For more information on Medicine Man Technologies public filing process, please follow this link: Medicine Man Technologies - EDGAR Page
Andrew Williams is a Co-founder and Chief Executive Officer of the Company. He has served as a director of the Company since 2014. From 2014 to 2018, Mr. Williams was the Company’s Chairman. Since 2016, Mr. Williams, has also been a founding partner of MedPharm, a phytopharmaceutical company. He currently serves as a board member of the Cannabis Trade Federation, Colorado Leads, American Trade Association for cannabis and Hemp and Flatiron Venture Partners, LLC. Mr. Williams was previously a project portfolio manager with Jeppesen, a software company offering navigational and flight planning products, as well as a director with Electronic Warfare Associates (EWA). Mr. Williams is currently the co-founder and director of the Medicine Man Family Foundation, a community-focused nonprofit investing in impact-driven projects rooted in the communities in which the Medicine Man brand operates. Mr. Williams received his Bachelor of Science in industrial engineering from Colorado State University-Pueblo. The Board of Directors has concluded that Mr. Williams is qualified to serve in his capacity due to his significant industry and leadership experience.
Justin Dye has served as a director and Chairman since June 2019. Mr. Dye has 25 years of experience in private equity, general management, operations, strategy, corporate finance, and M&A. Prior to founding Dye Capital & Company in 2018, he served as an integral part of the private equity consortium that acquired Albertsons Companies (“Albertsons”) and led its expansion through over $40 billion in acquisitions, divestitures, real estate and financing transactions. During his 11-year tenure as Chief Strategy Officer, Chief Operating Officer, and Chief Administration Officer, Albertsons grew sales from approximately $10 billion to over $60 billion with over 2,300 stores and 285,000 employees. Prior to Albertsons, Justin held roles at Cerberus Capital Management, General Electric and Arthur Andersen. Justin serves as lead director for New Seasons Market and is a member of the DePauw University Board of Trustees. Mr. Dye’s financial and executive experience qualifies him to serve on our Board of Directors.
Leonardo Riera has served as a director since June 2019. Mr. Riera has over 30 years of experience in investment banking and fund management and was the Country Head for Bankers Trust in Venezuela for over a decade. Mr. Riera has been a partner at Dye Capital & Company since 2019, and has been owner and CEO of Latin America Advisors, Inc., providing investment advisory and strategic planning services, since 1987. He was a consultant with McKinsey & Co., and Head of Mergers & Acquisitions for Citicorp Investment Bank in Venezuela. Mr. Riera served as President of the International Banking Association of Venezuela for three terms. He was also Head of Asset Structuring and Credit for a $2 Billion Emerging Market Debt Fund based in Florida, where he was responsible for investments in Russia, Ukraine, Kazakhstan, Mexico, China, Nigeria, Singapore, Angola, and Brazil. Mr. Riera holds a degree in Economics from Universidad Católica Andrés Bello and an MBA from the University of Pennsylvania’s distinguished Wharton School of Business. Mr. Riera’s financial and executive experience qualifies him to serve on our Board of Directors.
Robert DeGabrielle has served as a director since June 5, 2019. Mr. DeGabrielle has over 40 years of experience in acquiring, developing, managing and selling commercial and residential real estate. Since 1996, Mr. DeGabrielle been Managing Partner of Los Suenos Farms LLC, a real estate company. Mr. DeGabrielle also owns two Colorado Retail Marijuana Cultivation Licenses, Farm Boy LLC and Baseball 18 LLC, both doing business as Los Suenos Farms. Los Sueños Farms. is the largest cannabis farm in North America, with 36 acres of farmland under cultivation with natural sun-grown cannabis, and an additional 36,000 square feet of cannabis greenhouses. Since 2015, Mr. DeGabrielle has served on the board of Colorado Leads, the leading cannabis industry association in Colorado. Mr. DeGabrielle was also a founding member of the Cannabis Trade Association, the leading cannabis industry association in the United States. Mr. DeGabrielle’s business executive experience and substantive knowledge of and leadership in the Colorado cannabis industry qualifies him to serve on our Board of Directors.
Brian Ruden is the owner of several Colorado Retail Marijuana Store Licences around the state of Colorado doing business as Starbuds. Starbuds is one of the most recognized and successful retail cannabis operations in Colorado. Since 2010, he has owned and operated marijuana licenses in Colorado, Washington DC, and Hawaii. In 2014, Mr. Ruden founded Starbuds Consulting, a consulting company which provides strategic advice to start-up marijuana operations. Before entering the marijuana industry, Mr. Ruden was a tax attorney in Colorado. In 2005, Mr. Ruden received his law degree from the University of Denver, Sturm College of Law. He received his bachelor of science from the University of Massachusettes. Mr. Ruden’s extensive business experience qualifies him to serve on our Board of Directors.
Mr. Dye and Mr. Riera were appointed directors of the Company pursuant to, and upon the initial closing on June 5, 2019 of the securities purchase agreement between the Company and Dye Capital Cann Holdings, LLC (see “Certain Relationships and Related Transactions”).
Mr. DeGabrielle was appointed a director of the Company in connection with the binding term sheet dated May 24, 2019 among the Company, Farm Boy, LLC (“Farm Boy”) and Baseball 18, LLC (“Baseball”), setting forth the terms of the acquisition by the Company of 100% of the capital stock and assets of Farm Boy and Baseball respectively (see “Certain Relationships and Related Transactions.”)
Industry Leading Cannabis Cultivation Technology
Our risk-averse cannabis cultivation technology delivers consistent, high quality, high yield production within a clean-room style environment. Through our licensure services we provide standard operating procedures for all phases of commercial and industrial cannabis cultivation, from clone to counter. In addition, we provide hands-on training and development for your personnel both at Medicine Man Denver and your facility once operational.
Medicine Man Technologies has experience in all areas of cannabis cultivation including: Cloning, Propagation, Vegetative and Flowering husbandry, Drying and Cure techniques utilizing what we call a VCCH model, or Variable Capacity Continuous Harvest model. Our expert team of consultants possess an extensive knowledge of cannabis plant metabolism and physiology, indoor grow protocols and best practices, and the processing of the harvested crop. We can help your legal cannabis cultivation and associated operation overcome challenges to become a market leader.
Upcoming Acquisitions and Strategic Investment
Following the passage of HB19-1090 in May 2019, we have been working diligently to sign binding term sheets with numerous strategic Colorado cannabis companies. These pioneer companies will prove crucial to establishing our vertically integrated operations. Let us discuss each of them briefly:
| ||· ||Los Sueños Farms, LLC is North America’s largest sustainable cannabis farm. Founder Bob DeGabrielle joined the Company’s Board of Directors simultaneously with our entry into the binding term sheet with Los Sueños. |
| ||· ||Purplebee’s operates two dispensaries (with two more under construction) and uses proprietary CO2 extraction technology to create cannabis products. |
| ||· ||Dabble Extracts is an award-winning cannabis company specializing in processing cannabis into premium-grade extracts. |
| ||· ||Medically Correct is a leading manufacturer of cannabis edibles, including the popular incredibles brand, and is the creator of new brands Quig and Nove, both set to launch in the fall of 2019. |
| ||· ||Starbuds operates five dispensaries, and Managing Partner Brian Ruden is nominated for election at the Company’s upcoming shareholder meeting. |
| ||· ||Colorado Harvest Company operates three dispensaries and grows over 70 strains of cannabis in-house. |
| ||· ||Roots Rx operates six dispensaries in ski and mountain towns and operates an outdoor cultivation operation near Aspen. |
| ||· ||Strawberry Fields operates four dispensaries in southern Colorado, a manufacturing facility, and over two acres of greenhouse cultivation facilities and owns branded cannabis products, including Devour, a fast-growing brand of gummies. |
| ||· ||Canyon LLC is a manufacturer of all-natural, premium-infused edibles using its proprietary CO2 extraction process. |
| ||· ||Other Dispensaries includes eight dispensaries, across the Denver metropolitan area. |
Upon closing of these transactions, we will have expanded capabilities and expertise in cultivation, extraction, product manufacturing, and retail sales and distribution all which will enable us to compete in a quickly changing marketplace. Additionally, MedPharm also opens avenues to potentially future pharmaceutical revenue through its advanced cannabis research capabilities and licenses. I know I speak for our family of industry experts when I say we are looking forward to growing together, supporting one another, sharing best practices, and thriving in the next era of Colorado cannabis.
Strategic Investment from Dye Capital and New Board of Directors and Management Team to Benefit Integration and Scalability
The pending transactions will certainly be transformative for us and key to our future growth, but I would be remiss if I did not discuss the impact of a successful relationship behind the scenes. In June 2019, we announced a strategic investment from Dye Capital & Company, a private equity firm with proven experience in aggressively growing and scaling businesses in retail and consumer brands. With this joint venture, Dye Capital has invested $18.2M into the company thus far and could invest nearly $32 million more in the future through the exercise of warrants. This capital has strengthened the Company’s balance sheet during an important acquisitive period in the Company’s development.
Beyond Dye Capital’s investment into the Company, we also benefit from the additions of Mr. Justin Dye and Mr. Leonardo Riera to our Board of Directors. Mr. Dye is a Managing Partner at Dye Capital and became Chairman of the Board at Medicine Man Technologies as part of the strategic investment. He brings 25 years of experience in private equity, general management, operations, strategy, and corporate finance to the Company. He also was an integral part of the private equity team that led Albertsons Companies through over $40 billion in acquisitions and other transactions and grew revenue from $10 billion to over $60 billion. Mr. Riera, Chief Executive Officer of Latin American Advisors, Inc. and also a Dye Capital partner, has over 30 years of experience in investment banking, finance, fund management and also as an entrepreneur in the United States and in over 20 emerging markets.
Dye Capital’s involvement brings additional credibility to our Company and organizational scalability given the background of Dye Capital’s management and personnel. Furthermore, an additional benefit from our strategic partner relationship is the ability of Dye Capital to assist us in recruiting seasoned executive talent to our staff. With Dye Capital’s help, we announced the additions of Todd Williams as Chief Strategy Officer, Collin Lodge as Vice President of Integration, and Lee Dayton as Chief Administrative Officer this summer. All three played key roles at Albertsons Companies during its growth phase, along with Mr. Justin Dye. We also named Nancy Huber as our Senior Vice President of Finance in late August. These executive additions will bolster our management team at an important inflection point for our Company.
Medical and Recreational Cannabis Dispensary Operations
Our goal is to be one of the leading vertically integrated cannabis operators in the industry and to profitably grow. We are building a family of proven operators and brands guided by a very experienced and accomplished management team and Board of Directors that are unrivaled in our industry.
These are exciting times for our industry, as more states are legalizing cannabis and the public perception of cannabis use continues to trend favorably. Moreover, the SAFE Banking Act was recently passed in the U.S. House of Representatives, which brings our industry one step closer to access to banking services, which would put us on a level playing field with other industries and companies that enjoy such seemingly basic business services.
In the coming months, our goal will be to focus on closing the numerous acquisitions outlined in this letter and have announced in previous press releases. There is significant growth potential in the cannabis market currently and an abundance of synergies to be recognized from the integration of these new companies into the Medicine Man Technologies family. We certainly intend to capture these opportunities and believe we have the best team of operators and management in the industry to do so. I look forward to sharing more about our strategy in 2020.
From time to time, we will provide shareholder letters like this one to help investors understand our strategy, actions, and accomplishments, but our website at www.MedicineManTechnologies.com is also a great resource for investors and can provide company news and real-time updates.
On behalf of the entire Medicine Man Technologies family, and what a growing one it is, we thank you for your continued support during this exciting time for both our Company and the industry.
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