Schwazze, (OTCQX:SHWZ) (“Schwazze” or the “Company”), announced signed definitive documents to acquire the assets of BG3 Investments, LLC dba Drift which consists of two marijuana retail stores located in Boulder, Colorado. This purchase continues Schwazze’s expansion and growth plans in Colorado adding to the Company’s current dispensary footprint, with nine dispensaries acquired year to date, bringing the total number of dispensaries to nineteen. As part of the purchase, Schwazze will also acquire the assets of Black Box Licensing, LLC, which contains certain intellectual property.
“We look forward to adding these dispensaries to our portfolio. The Company remains focused on bringing excellent customer experiences to all areas of Colorado, and we are excited to bring that experience to our customers in Boulder,” said Justin Dye, Schwazze’s CEO.
The consideration for the proposed acquisition is $3.5 million and will be paid as $1.9 million in cash, and $1.6 million in common stock. This transaction represents a 3.5 times multiple based on the projected 2021 adjusted EBITDA for the two dispensaries. The acquisition is expected to close during the third quarter of 2021 after the Colorado Marijuana Enforcement Division and local licensing approval.