Medicine Man Technologies Closes on First Phase of Initial $14 Million Strategic Investment from Dye Capital & Company

DENVER, June 6, 2019 /PRNewswire/ — PRESS RELEASE — Medicine Man Technologies, Inc., a rapidly growing, vertically integrated cannabis operator, has announced that it has entered into a securities purchase agreement for the sale of up to $14 million of the company’s common stock from an affiliate of Dye Capital & Company.

Dye Capital is a private equity firm with extensive experience in aggressively growing and scaling businesses in retail and consumer brands. The investment will continue to fund Medicine Man Technologies’ aggressive growth and further establish it as one of the industry leaders in cannabis. Medicine Man Technologies has announced the following pending acquisitions:

  • MedPharm Holdings – Colorado’s first licensed cannabis research & phytopharmaceutical company;
  • Medicine Man Denver – Colorado’s leader in indoor cultivation and premium dispensaries;
  • Los Sueños Farms – North America’s largest sustainable cannabis farm; and
  • Mesa Organics (d/b/a Purplebee’s) – a leading cannabis products manufacturing company.

The company will invest in expansion of its brand presence, scaling product development, retail innovation, operational capabilities and corporate infrastructure. With the mission of Medicine Man Technologies to become the premier U.S.-based cannabis operator, Dye Capital will assist the company in recruiting seasoned executive talent in strategy, marketing, mergers and acquisitions, corporate finance and operations. Two key members of Dye Capital, Justin Dye and Leo Riera, will join the Board of Directors. Dye, Dye Capital Managing Partner, will become the Chairman of the Board. This announcement comes on the heels of Gov. Jared Polis signing six cannabis-related bills, including HB19-1090, passed into law by the Colorado legislature on May 29.

“Dye Capital is the right partner for our company with a unique set of skills and experience in merger and acquisition transactions, integration experience, and scaling operations. Our entire team is excited about teaming with Dye Capital,” said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. “We have diligently worked on building a solid foundation for our business and believe this relationship will deliver value to our shareholders.”

Dye has 25 years of experience in private equity, general management, operations, strategy, corporate finance and M&A. Prior to founding Dye Capital & Company, he served as an integral part of the private equity consortium that acquired Albertsons Companies 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, Dye held roles at Cerberus Capital Management, General Electric and Arthur Andersen. Dye serves as lead director for New Seasons Market and is a member of the DePauw University Board of Trustees.

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. He was a consultant with McKinsey & Co., and head of mergers and acquisitions for Citicorp Investment Bank in Venezuela. 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. 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.

Williams continued, “Dye Capital has a reputation for partnering with management teams to build well-respected companies, and the addition of Justin and Leo to our Board demonstrates their long-term commitment to building a strong and successful relationship with Medicine Man Technologies. The Dye Capital team will be a tremendous value to our management team.”

For more information about the terms of the financing described above, please see the company’s filing on Form 8-K filed with the Securities and Exchange Commission.

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