Medicine Man Technologies Closes on Second Phase of Strategic Investment with Dye Capital & Company

DENVER, July 17, 2019 – PRESS RELEASE – Medicine Man Technologies, Inc. has announced that the company has amended its original securities purchase agreement (SPA) dated June 5, 2019, with strategic partner Dye Capital & Company. Pursuant to the amendment, the SPA was revised to reflect an increase in the overall size of the funding from $14 million to up to $21 million.

At the initial closing, the company issued and sold 1,500,000 common shares and warrants to purchase 1,500,000 shares of common stock, for gross proceeds of $3 million. Medicine Man Technologies and Dye Capital also completed on July 15 the second closing from the SPA, with Dye Capital purchasing 3,500,000 shares of company stock for $7 million and receiving warrants to purchase 3,500,000 shares of common stock at an exercise price of $3.50.

As a result, at the third closing, scheduled for Aug. 15, 2019, Dye Capital will purchase 3,000,000 shares of common stock and have the option to acquire up to an additional 2,500,000 shares of common stock, for an aggregate of up to 5,500,000 shares of common stock, and warrants to purchase 100 percent of the number of shares of common stock at an exercise price of $3.50 per share.

“This commitment from our strategic partner signals their confidence in our business as we continue to deliver on our promise to be one of the leading vertically integrated cannabis operators with a deep footprint in the most mature cannabis market in the world,” said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. “We continue to add new team members to strengthen our company as we move forward in executing on our plan. The members from Dye Capital are not only increasing their investment, but are personally invested in the Company and have directly been responsible for successfully implementing a similar growth strategy through acquisitions in the grocery industry. There they grew Albertsons from $10 billion in revenue to over $60 billion in revenue. We have increased our industry footprint with the announcements of several pending acquisitions to build a vertically integrated powerhouse that will combine the best and brightest industry founders into one organization.”

Medicine Man Technologies recently announced Justin Dye, Dye Capital managing partner, as the company’s chairman of the board and Leo Riera as a new member of its Board of Directors. Dye has 25 years of experience in private equity, general management, operations, strategy, corporate finance and M&A, and served as an integral part of the private equity consortium that acquired Albertsons Companies and led its expansion through over $40 billion in acquisition, divestiture, real estate and financing transactions. 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. The company also announced the addition of Todd Williams as chief strategy officer in June, who has over 24 years of consulting and asset valuation experience. On July 1, the company appointed Lee Dayton Jr. as chief administrative officer. Dayton brings over 25 years of investment banking and corporate development experience to his new role.

In recent weeks, the company entered into binding agreements to acquire four licensed operators in the state of Colorado, and is actively engaged in forming a solid entity involving leading cultivation, extracting and retailing assets in Colorado and Colombia.

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