Replies to post #3099 on Medicine Man Technologies Inc (SHWZ)

[Future2016]

In the definitive proxy statement, they list out the shares for acquiring Medicine Man Denver and MedPharm. All of the current agreements equate to 64,555,882 shares being issued. The current shares outstanding is almost 40 million. They have breached their 90 million outstanding shares if they don’t increase authorized shares, and all of the deals cannot go through if this isn’t increased.

The revenue is set to be $170 mill with a market cap at $320 mill if the price remains the same. Currently the market cap is 14x’s revenue.

$22 per share is a market cap representing 14 times $170 mil in revenues after deals close with 105 million shares outstanding.

The dilution I worry about are the toxic dilutive contracts, which they don’t have.

[pottsvision]

Increasing the authorized share count is not outright dilution - the company needs headroom for a variety of reasons... Notably those shares are not set to be used immediately.

Mdcl is profitable out the gate... Pretty unheard of with an aggressive m/a strategy like this... Non dilutive financing is/will be an option.

The market has long since misunderstood this company - some still confuse medicine man technologies with medmen... Weak hands would be selling right now - fine, leaves more room to run, by the time 170+ mil revenue and 20+% ebidta roll in...this current mkt cap/price will be a dream that won't come true and buyers will gladly pay double digits per share.

Right now - thx for the buying opportunity, fearful markets create spectacular discounts... I've made a small buy every day this week, under 5 is a steal, under 3.50 is closer to early retirement.