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I follow the First Foods twitter page and the Southeast Edibles Facebook and Twitter pages daily.
Congrats to you. Always happy to hear when someone makes a profit.
The trading action of this stock in the past few weeks and today was the perfect example of the saying "Buy the rumor, sell the news".
I thought the news release was a positive step but the stock just can't to seem to get any traction currently. With the low float and lack of debt, you would think it could just get a pop soon.
I will continue to hang in here.
Respectfully disagree. With what cash did Andy have to get the deals done? He had none and had no way of raising any cash to complete them and that was why Andy brought Justin on board. Once Justin got on board, he realized that most of these deals were too financially draining to the bottom line and the that SHWZ would be overpaying for these companies. Justin has more access to cash with his proven background in the corporate world and has the personal relationships to make it happen. If the Safe Banking Act gets finalized, the financial institutions will be lining up to give SHWZ loans because they will be profitable and have a proven leader to grow the company with Justin’s track record.
Allied Esports Entertainment (AESE) really taking off today. ANFC's investment in that company can really add to the bottom line. We could see a push to the upside if it continues.
Congrats, happy for you! Glad to be able to help.
Well I was definitely wrong about a late day run today. We lost the upside chart breakout and it is amazing what one stupid news article can do because people don't do their homework. If they listened to the conference call then they should have been selling on Friday based on the results if they believed this article.
People are so influenced by what they read on the internet. Tomorrow is another day so hopefully the weak holders will be completely out.
While AW should be commended on being a pioneer in moving cannabis to the forefront in Colorado, what potential partner will want to pair up with Medicine Man Denver now? There are so many players out there now that are falling behind the pack. AW was at the front of the game while helping moving the legalization forward and many owed him an appreciation to help their businesses but now that the legalization bills passed, there is no need to combine with AW. Many of these other players most likely won't have the financing to get it done but Justin is an experienced business pro and has the financial backing to make it work.
AW should have really thought things over to take less to make the Denver deal happen because of how much he had at stake. His payoff day may never come especially if the Medpharm deal dissolves. I believe they are probably renegotiating the Medpharm deal to better terms or it won't take place.
Just my thoughts that Justin wants to make the Medpharm deal to work itself out but I wouldn't be surprised to see it dissolve because I believe AW has alienated himself to SHWZ with all that has gone on these past few months. But the deal could get completed because AW only holds 10% of Medpharm and the other majority shareholders want to get it done because of the potential payday a cannabis conglomerate like SHWZ could turn into.
Either way, I believe in Justin to make SHWZ a mega player in the industry and I wouldn't be surprised to see new merger deals materialize if these fall apart.
VERT seems to know something because they stay strong on the buy side despite the stupid sellers being aggressive and panicked on selling. Wouldn't be surprised to see a nice push to the upside later in the day.
If the MedPharm deal doesn’t go through, then AW isn’t going to make squat. He already is losing on the Medicine Man Denver deal being canceled and without MedPharm there is no big payday ahead for him. All these deals failing to materialize are a reflection on AW not Justin. Any other company looking to make an acquisition is going to think twice before moving ahead with doing a deal with AW.
It is just my opinion that Justin has some possible additional deals in the works. I would bet that there are quite a handful of companies wanting to get under the SHWZ umbrella. Any company that can add positive earnings to SHWZ will see real appreciation in stock price moving forward.
The filing came out yesterday. Click on the link below:
https://www.sec.gov/Archives/edgar/data/1648903/000147793220004809/fifg_10q.htm
I see that some of you commented on the Medicine Man Denver and Medpharm situation. I just wanted to look into some more info to post a thought about the deals.
Andy along with his brother are the major owners of Medicine Man Denver. My thought is once Justin got done with his due diligence, he realized that Andy was definitely overpaying for it so Andy and his brother could have their major payday. Since both of the William brothers control the majority interest, they were hoping for Justin to leave the deal as it was originally written which would have been too diluted for SHWZ. So it is of my opinion that Justin said no to the deal.
As far as Medpharm is concerned, Andy doesn't control enough interest in the company to effect any deal in the works because he will be outvoted so that is why the deal is still in the works. The other shareholders realize a big payday could be ahead by making the deal and helping the combined company move ahead. They just might buy Andy out of his stake there at a premium just to get him out.
Finally by the commentary of the conference call, it looks like the takeover deals by Andy were even more of a mess than Justin ever realized. I don't believe Andy thought Justin could really breakdown the information necessary to run the cannabis business without having knowledge of the business and that all these deals would move forward because Justin was used to running a big conglomerate and would want to prove he could make it happen again like Albertsons in a quick manner.
These are just my opinions but I am super glad that we have someone so knowledgeable and profession as Justin at the wheel. I am more confident than ever with where we are headed and knowing that profitability is just around the corner which will make SHWZ one of the few profitable companies in the cannabis industry.
And yes, let's officially change the name of the company to SCHWAZZE and get rid of the confusion of Medicine Man Technologies to other cannabis companies.
I don’t think Justin would have answered that question directly. They wouldn’t want anyone to know about further acquisitions because it could drive the price up or create another bidder out there for the possible acquisition candidate.
Here is my analysis of the conference call. Justin sounded more confident and upbeat then the previous earnings call. I love that he is all business and is only looking to complete deals that are profitable. Once the Starbuds deal is complete, SHWZ might be only 1 of maybe 10 companies in the cannabis sector that is profitable in the world.
I need to look some things up to confirm a take on the Medicine Man Denver situation so I will post about that later when I gather the info to conclude my take on the situation.
I like it, close and complete the Starbuds deal and they are net profitable.
Medicine Man Denver is out, but glad to see that Medpharm, Roots RX and Canyon Cultivation are still in the mix.
Schwazze Announces Second Quarter 2020 Financial Results and Provides Company Update
BUSINESS WIRE 3:07 PM ET 8/13/2020
Total Revenues Increase 208.6%; Gross Profit Increases 245.2%; Net Loss Narrowed Significantly
Company Completes Accretive Acquisition of Mesa Organics and Drives Value to the Bottom Line
Company to Host Conference Call and Webcast Today at 4:30 p.m. ET
DENVER--(BUSINESS WIRE)-- Schwazze, formerly operating as Medicine Man Technologies Inc. ("Schwazze " or “the Company"), today announced financial results for its second quarter ended June 30, 2020.
Justin Dye, Chairman and Chief Executive Officer of Schwazze shared, “We are building a unique, differentiated business with leading cannabis brands and believe Schwazze is well-positioned to become a leading seed to sale company as our industry consolidates. During the second quarter, we made significant progress integrating our recent Mesa Organics and Purplebee’s acquisition, which has already proven to be a great strategic fit, and our platform benefited from its strong and accretive results. In fact, our top line and gross profit more than tripled while our net loss sharply narrowed compared to the prior year second quarter.”
“Our intention is to create shareholder value by growing organically and through merger and acquisition opportunities. We currently have definitive agreements with 14 Star Buds locations, which we anticipate closing in the coming months. These pending acquisitions add to our size and scale in the state of Colorado. In addition to our rigorous M&A activity, we continue to make strides with respect to integration through the implementation of our operating playbook. We are focused on driving growth, leveraging our cost structure, and driving value to the bottom line,” concluded Dye.
Company Update
On April 20, 2020, the Company completed its acquisition of Mesa Organics and Purplebee’s. Mesa Organics operates four dispensaries throughout southern Colorado in Pueblo, Ordway, Rocky Ford, and Las Animas. Purplebee's is a leading pure CO2 and ethanol extractor and manufacturer, as well as a producer of cannabis products for some of the leading edible companies across the state.
On June 8, 2020, the Company announced that it had signed definitive acquisition agreements for 14 Star Buds locations in Colorado. Star Buds, one of the most recognized and successful retail cannabis operators in North America based on revenue-per-location and profit, is home to a wide selection of strains, concentrates, edibles, tinctures, and best-in-class customer service. Based on the consolidated, unaudited 2019 results the Company received from Star Buds, these acquisitions collectively earned approximately $50 million in revenues with a strong EBITDA margin. The Company has submitted the change of ownership applications with the Colorado Marijuana Enforcement Division for the 14 Star Buds locations and the transactions are expected to close in the coming months.
The Company had previously indicated that it will not be proceeding with the following targets: Dabble Extracts, Los Sueños Farms, and Medically Correct. The Company has also provided notice that its term sheet with Medicine Man Denver will expire at the end of the month and it is terminating the term sheet. However, the Company remains in negotiations with the following announced acquisitions: Roots Rx, MedPharm, and Canyon Cultivation and continues to build a robust pipeline.
At this time, the Company is pleased with how it is trending during the third quarter with increased product sales from Mesa Organics. This is due in part to the year-over-year expansion of dispensary locations and Purplebee’s benefiting from product expansion and additional white labeling opportunities. The Company continues to be optimistic regarding its path and is confident the platform it is building positions it to become a market leader.
Second Quarter 2020 Financial Results
Revenues were $5,424,329 during the three months ended June 30, 2020, representing an increase of 208.6% as compared to $1,757,819 during the three months ended June 30, 2019. Product sales increased 263.3% while consulting and licensing fees increased 38.6%, respectively. The increase in product sales can largely be attributed to the revenue associated with the acquisition of Mesa Organics in April 2020.
Cost of goods and services were $3,106,686 during the three months ended June 30, 2020, representing an increase of 186.0% as compared to $1,086,413 during the same period in 2019. This increase was due to increased sales of our products. As a percentage of revenue, cost of goods and services decreased 450 basis points to 57.3% versus 61.8% in the prior year second quarter as we leveraged an increase in sales related to the acquisition of Mesa Organics.
Gross profit was $2,317,643 during the three months ended June 30, 2020 as compared to $671,406 during the same period in 2019. Gross profit margin increased to 42.7% of revenues from 38.2% of revenues during the same period in 2019. The 245.2% increase in gross profit and 450 basis points in margin expansion were mostly driven by the strength of the Mesa Organics acquisition.
Total operating expenses were $8,667,604 during the three months ended June 30, 2020 as compared to $9,014,276 during the same period in 2019. The decrease was primarily attributable to the derivative expense for contingent compensation in the prior year. This was partially offset by higher expenses and non-cash, stock-based compensation associated with activities related to building infrastructure and ensuring a seamless integration of acquisitions in the pipeline. As the Company progresses through the balance of the year, its startup expenses should decline, and its operating leverage should improve through internal growth and acquisitions.
Total other expenses were $245,746 during the three months ended June 30, 2020 as compared to net other expenses of $479,780 during the same period in 2019. This represents an improvement of $234,034. The decrease in other expenses, net was primarily due to lower interest expense coupled with other income related to an unrealized gain recognized on derivative liabilities and an unrealized gain on investments.
Net loss was $6,595,707 for the three months ended June 30, 2020, or a loss of approximately $0.16 per share on a basic weighted average, as compared to net loss of $8,822,650, or a loss of approximately $0.30 per share on a basic weighted average, for the three months ended June 30, 2019. The Company expects that once the anticipated closing of the Star Buds locations is completed, it will achieve profitability.
Conference Call and Webcast Today
Schwazze will host a conference call and webcast today at 4:30 p.m. ET. Investors interested in participating in the conference call can dial 201-389-0879 or listen to the webcast from the Company's “Investors” website at https://ir.schwazze.com. The webcast will later be archived as well.
Following their prepared remarks, Chief Executive Officer Justin Dye and Chief Financial Officer Nancy Huber will also answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: http://public.viavid.com/index.php?id=140284. This weblink has also been posted to the Company’s “Investors” website.
About Schwazze
Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its vision to become one of the nation’s largest vertically integrated cannabis holding companies by revenue. Upon the completion of its acquisitions, its portfolio will consist of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.
Forward-Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to market our products and product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
If I remember correctly, SHWZ posted the earnings news right after the market closed and then had the conference call shortly thereafter.
Well I guess my prediction could be right of a stock price of $2.50 - $3.00 and I was wrong to get out predicting a possible pullback. GLTA
VERT continues to hold strong on the bid side at these levels despite the sellers putting pressure on it. This is looking good for a turnaround.
And why would 2 real estate companies invest in a cannabis company? What logic does that make as a synergy between the 2 real estate companies and a cannabis company?
The positive today is that VERT stays on the bid side which is a good sign.
Just wondering where is your evidence that Andy was forced out?
It is my opinion that Andy left on his own account because he promised all these deals and he knew he couldn’t get it done because the company didn’t have the cash and that is why he was looking for someone like Justin to come onboard and make it happen. Now Andy doesn’t look like the bad guy if the deals don’t happen and puts Justin in a bad spot. But Justin has a proven track record with the outstanding job he did with Albertsons and I believe he will accomplish that here in due time so I wasn’t expecting all 12 deals to close.
It takes a lot of time to put one deal together and get completed never mind 12 of them. I have spoken to some people that are in high ranking in corporate business and they said there is no way you could complete 12 deals in the timeframe Andy was proposing unless you basically wanted to bankrupt the company. So if Justin can get just a couple more of these deals completed (really want MedPharm) then I believe we have a $10 - $20 stock price in the future at least.
I know that we are all disappointed that the stock price isn’t higher currently but the COVID crisis through a monkey wrench into the situation that no one could foresee. SHWZ can come through this in flying colors as long as they complete deals that are profitable to the bottom line and not take on much debt. Patience while difficult is needed and be rewarded in a big way but we need to remain focused and positive. Also, Andy will lose all of his equity that he worked so hard for if SHWZ fails and he won’t have any cash to start over again so he needs to stay behind the company to get any payoff. GLTA.
Next week could be the key with earnings due out.
You and I seem to be the only followers at the moment on this chat board.
I too believe there is more happening out there then we know about and it is my opinion that Dye has some of these issues wrapped up. But as the share price continues to drop it puts skepticism out there and I don’t want to see that. I believe in Dye and what is happening here but I don’t think I could have ever imagined the stock price being this low. Could have owned a much bigger position at a cheaper price.
The problem is that most of the shareholders are flippers (traders), hardly anyone is an investor anymore especially on stocks below $5.00 a share.
But if you can wait to invest and hold the cheap stocks then the payoffs can be huge instead of flipping for a few hundred bucks. SHWZ has all the makings to be a homerun so I will wait it out.
As far as I know, he can't say anything because it is a blackout period because earnings are due out soon.
The best part about almost everyone selling here is that they are losing money or just making a few cents a share if they got in long ago at about $1.00. I hope they are losing their shirts by selling.
I know we are all speechless, there is nothing else to say but we just have to sit and wait it out. This is total BS. Justin is going to dig into the Dye Capital mattresses and come up with some cash to keep this share price up.
I am still in believer in what could and should happen here but this is incredibly frustrating to watch. I hate blackout periods heading into earnings.
Here is the 8-K about the termination of the Medically Correct deal
https://ir.schwazze.com/sec-filings/all-sec-filings##document-409-0001683168-20-002449
I totally agree with your analysis of Beyer's situation. Beyer, I do commend you for your commitment in the company and understand your frustration.
Justin Dye has an established track record in growing a company to be an industry giant. Obviously that didn't happen overnight and now Justin has to straighten out the mess that he was left with. I will assume Justin knew he had some headwinds in front of him when he came on board, but probably didn't expect so many of these deals didn't meet the criteria he seeks when doing one of these deals.
I think some of the companies walking away from the previously announced deals think they can do better on their own but in my opinion I think they are making a mistake. The COVID situation brought some unexpected additional business to the cannabis sector and these companies believe they can seize on the situation. The cannabis sector still has too few players making a profit and by going it alone will prove to be a mistake in the long run. This industry will survive on being the best of the best and I think SHWZ is set up to be just one of the few to be profitable going forward. Then these companies will come back knocking on SHWZ's door to redo a deal and SHWZ won't need them anymore.
I continue to remain positive on what is happening here and believe the ship will be remain upright and we will see smooth sailing ahead soon. Beyer, hang in there because you are a shining light in your belief in the company along with Future, myself and a few others. I look forward to a day in the future where we can toast a glass in celebration.
Now if we can just get some positive news from the company before the opening tomorrow morning to go along with these incredible tech earnings of AAPL, GOOG, FB, and AMZN and we could have a melt up on the stock price.
Fingers crossed!
All I am saying is that the closing isn't completed until the cash and license transfers and every "T" is crossed and "I" is dotted and they announce it is finalized. I personally have no doubt that it will happen and I along with you Drugdoctor have been positive on what is happening with SHWZ.
In this COVID environment, nothing surprises me that some kind of delay could happen (not saying it will).
Yes, I meant Starbuds closing, thanks for noticing my mistake
I think we are going to get some kind of big press release any day now. The company has been quiet about the Medically Correct situation and I believe we will get an update about that issue, the Mesa Organics closing and possibly some addition news about Medpharm or maybe another surprise business deal.
For the investors here expecting the company to worry about getting information from this chat board, you need to reach out to the company's IR directly if you are that worried. Justin has led Albertson's prior to his arrival here to be one of the industry's giants but it takes time. I know we want to see some appreciation in our stock price and I believe we will and it will be better than we expect in my opinion.
The company is still on track to be one of the very few cannabis companies that will be profitable. Think of that, all those cannabis giants and they can't turn a profit. You need to be profitable for your stock price to continue to appreciate.
I said this before and I will say it again, I liked Andy and loved his enthusiasm which got my interest. But now seeing some of these deals fall apart, he was in over his head on making this work and it just wasn't going to happen. If Justin can't or won't close these deals on the merits of the conditions, then I can't see how Andy was going to make them work without bankrupting the company or diluting it by giving away company shares which has happened with all the other cannabis giants. Andy still has an immense stake in what happens here by his holdings in SHWZ and Medpharm and if he doesn't close the Medpharm deal then he isn't going to get a big payoff day ever in my opinion.
Looking forward to seeing a positive update. Good luck to all.
I am enjoying seeing the sudden interest and some trades. I think the Southeast Edibles division is doing well and will be a nice surprise.
Still like the company but was surprised the earnings weren't a little better. I sold my position because of the earnings but it could have been a hiccup due to the COVID crisis. Looking to jump back in if a pullback happens. I still see the stock could go to the $2.50 - $3.00 price range.
What good would be closing the deals if you didn't have the proper personnel, knowledge and experience to move the company forward? Justin is bringing on some very brilliant and accomplished personnel.
While I like what Andy did to move the company forward, he didn't know how to get the deals done and realized he was in over his head and that is why he went looking for a successor like Justin Dye. Also, Andy has a big payday ahead of him when SHWZ completes these deals and taking on Medpharm which Andy has a big part of so I don't see that deal falling apart either.
When these deals get completed, SHWZ could be one of the biggest talked about stocks of 2021 with incredible revenue growth and stock price appreciation.
The waiting is always the hard part because we thought the cannabis sector would be reaching constant new highs. But the sector got saturated with some overleverage companies and it has put an apprehension on the industry sector. There is big money to be made in this industry and the strong will survive and I believe SHWZ will be one of the best in the industry in the near future.
The company announced today that some exciting things are coming soon. I believe it concerns their anti-fog product by their announcement on Facebook today.
Well that big size seller at .35 will slow down any up momentum at the moment
Looks like the stock is officially gone from the Canadian exchange
The board is so quiet, we are all waiting here like we are standing on eggshells for any news. The stock is like a coiled spring ready to be released to explode to the upside while the faint of heart day traders are sitting on it everyday that we get closer to the end of the month without a final announcement about the Starbuds acquisition.
If Justin comes through with acquisition funds (which I believe he will), then the doubt about his plan moving forward should be put to rest and the upward momentum will start to really build. If we can finalize the deal with Medpharm, then the sky is the limit in my opinion.
Quite a few of us have been patient and waiting for a long time on this stock to finally get the recognition it deserves and it has been frustrating. The saying that "good things happen to those who wait" is now our rallying cry.
I really believe and have faith that Justin is the right guy at the wheel and we are really close to getting that payoff. Until then as radio DJ Casey Kasem used to say, "keep your feet on the ground and keep reaching for the stars".
Blast off is coming soon!