Schwazze acquires Everest Apothecary for $38 million

Schwazze, a Denver-based cannabis company, has acquired New Mexico cannabis operator Everest Apothecary for $38 million, expanding its footprint in the Southwest.

Schwazze, a cannabis company formerly known as Medicine Man Technologies, has acquired New Mexico-based Everest Apothecary in a deal worth $38 million. The acquisition gives Schwazze a foothold in the New Mexico market, which recently legalized adult-use cannabis.

Everest Apothecary operates two dispensaries in Albuquerque and a cultivation facility in nearby Bernalillo. The company has a strong reputation for producing high-quality cannabis products and has won multiple awards for its flower and concentrates.

The acquisition is part of Schwazze’s strategy to expand its presence in key cannabis markets across the United States. The company has made a number of acquisitions in recent years, including Mesa Organics, a Colorado-based cannabis company, and Dabble Extracts, a producer of cannabis concentrates.

The acquisition of Everest Apothecary is expected to be immediately accretive to Schwazze’s earnings and will provide the company with a platform for growth in the fast-growing New Mexico market. The state is expected to begin issuing licenses for adult-use cannabis sales later this year, which is likely to drive significant demand for cannabis products.

Schwazze CEO Justin Dye said in a statement that the acquisition “demonstrates our commitment to expanding our geographic footprint and increasing our market share in highly attractive markets like New Mexico.”

The acquisition is subject to regulatory approval and is expected to close in the third quarter of 2021.

The cannabis industry has been experiencing rapid growth in recent years, as more and more states legalize cannabis for medical or recreational use. This has created a highly competitive market, with companies vying for market share and looking for ways to differentiate themselves from their competitors.

Consolidation has become a common strategy in the cannabis industry, as companies seek to expand their operations and gain a competitive advantage. Acquisitions allow companies to quickly enter new markets, acquire new customers, and gain access to valuable intellectual property and expertise.

As the cannabis industry continues to grow and evolve, it is likely that we will see more consolidation and M&A activity in the space. Companies that are able to execute successful acquisitions and integrate their new assets quickly and efficiently will be better positioned to succeed in this highly competitive market.