Medicine Man Tech Inc - SHWZ stock
Introduction[edit]
Established in 2014, Medicine Man Technologies, Inc. (OTC: SHWZ) is a cannabis consumer-packed products company and retailer in Colorado and New Mexico. It currently operates under its new trade name, Schwazze. The company operates through retail, wholesale, and other segments. Historically, it is known to support entrepreneurs across the globe via cannabis consulting services. Medicine Man offers clients unique products, such as Three A Light, The Success Nutrients, and The Big Tomato, that facilitate the healthy growth of cannabis and boost their ultimate yield. The products include. The company is currently executing its strategic plan to become one of the largest vertically integrated companies in the U.S. by revenue. Its cannabis product portfolio composes concentrates, edibles, loose flowers, pre-rolls, tropicals, other cannabis products, and vape cartridges and syringes. The firm's brands include Star Buds, Emerald Fields, R. Greenleaf, Autograph, and Schwazze Biosciences. The company also provides licensing and consulting, facility design, and facility management services. Medicine Man is headquartered in Denver, Colorado. Its common stock is publicly traded under the SHWZ ticker symbol on OTC Markets.[1]
Company Operations[edit]
Schwazze is an end-to-end regional growth operator focused on providing cannabis consumers with the most trusted products and experiences leveraged on quality health. It acquires and develops brands with long-term strategic value to the company, the world, and every entity within its vertically integrated scope of valuable assets. The company's segments carry out unique roles to ensure its overall success. The retail segment, which incorporates retail dispensaries, ensures smooth distribution of the company's pipeline of cannabis products directly to consumers. Its retail brands are Stra Buds, Emerald Fields, and R. Greenleaf. The wholesale segment includes Elemental, Purplebees, The Big Tomato, and Success Nutrients brands. Elemental uses cannabis and biomass produced by R. Greenleaf cultivation sites, like edibles and vapes, to produce cannabis products. Purplebees produces a portion of products used in the production of cannabis products across the states. Other segments, which include Big Tomato, Success Nutrients, Biosciences, and corporate, are assigned their respective duties that directly contribute to the firm’s growth and survival.[2]
Medicine Men, through its cannabis consulting program, manufactures and distributes various cannabis plant nutrients, hydroponics, and indoor garden products. The company also provides hands-on personnel training and development in Denver to equip cultivators with speed-to-market advantages and mitigate risks associated with the cultivation Phase.[3]
As of September 30, 2022, Schwazze owned and operated an outstanding portfolio of eight iconic cannabis brands, 33 cannabis retail dispensaries, seven cultivation facilities, and two manufacturing plants. The company's dispensaries and manufacturing properties are ranked first in Colorado and second in New Mexico, respectively. Schwazze looks to capitalize on the rapidly growing cannabis industry market, leveraging its scalable vertically-integrated business platform and strategic blueprint that has yielded conspicuous growth and revenue. It also aims to push for expansion into super-regional markets for further development.[4]
Company and Industry Developments[edit]
On December 15, 2022, the company announced its milestone achievement, bringing the number of dispensaries across Colorado and New Mexico states to 40. The news was made public after Schwazz successfully closed the acquisition of certain assets of Lightshade Labs LLC, including Lightshade's adult-use dispensaries at 503 Havana St. in Aurora, and 2215 E. Mississippi Ave., Denver. R. Greenleaf also opened a new adult-use dispensary in New Mexico, its fifth consecutive opening in 90 days. R. Greenleaf now has 15 retail outlets in New Mexico.[5]
Medicine Man Technologies released its third-quarter financial and operating results for the period that ended September 30, 2022, on November 9. Highlights of the company’s performance in the period include:
- Generated revenue of $43.2 million, a 36% increase from Q3 2021
- Made retail sales of $39.8 million, up 92% to $20.7 million compared to the same quarter last year
- The Gross Margin was $26.0 million, 60.1% of revenue, versus $15.1 million and 47.3% of revenue in the third, 2021
- The company realized $1.8 million in net income, compared to $1.0 million in Q3 2021
- Adjusted EBITDA was $15.9 million, 36.7% of the total revenue, compared to $8.8 million in the same quarter in 2021
Revenue contribution over the three months included (i) retail sales of $39,759,734, (ii) wholesale sales of $3,335,252, and (iii) other operating revenues of $96,000, versus the same period in 2021, which recorded (i) $20,741,864 in retail sales, (ii) $11,022,519 in wholesale sales, and (iii) $70,92 in other operating sales. The company also managed significant acquisitions since December 2021, comprising 15 cannabis dispensaries; five in Colorado and 10 in New Mexico, four cultivation facilities in New Mexico, one in Colorado, and one manufacturing property in New Mexico.[6]
The U.S. legal cannabis total addressable market (TAM) in 2022 is expected to be e $28.3B and will hit $46.2B by 2026. The total TAM is predicted to reach $100B in 2030.[7]
Leadership[edit]
Board of Directors[edit]
Justin Dye, Chairman & CEO
- Commands over 25 years of experience in high-level mergers and acquisitions, strategic management, operations, corporate finance, and private equity
- Previously worked at Albertsons, Inc., where he spearheaded the firm to approximately $40 billion in acquisitions, divestitures, and real estate business transactions.
- He grew Albertson’s by roughly $10 billion to over $60 billion
- He has also held senior positions at Arthur Andersen LLP, Cerberus Capital Management, and General Electric
- Mr Dye acquired his bachelor’s in political science from DePauw University
Nancy Huber, CFO
- More than 30 years of experience managing public enterprises
- Oversaw the company’s strides in revenue, EBITDA, and margins
- Acquired his MBA from the Kellogg School of Management.
Nirup Krishnamurthy, President
- Over 25 years of experience in leadership working at Fortune 500 companies
- Technology innovation, restructuring, and integration-oriented individual
- Helped architecture cost reduction and revenue generation strategies for United Airlines while working as the Chief Information Officer
- Has a bachelor’s in Mechanical Engineering and a doctorate in Industrial Engineering from the State University of New York
Ryan Schuelke, Director of Cultivation
- Supervises the cultivation team, offering consultation and training services to new operators on the best cannabis cultivation approaches
- Over ten years in the cultivation practice
Other board members include Johnathan Berger, Jeff Cozad, Jeff Garwood, Marc Rubin, all directors, and three others.[8]
- ↑ Company Profile - seekingalpha.com/symbol/SHWZ.
- ↑ Company Details - cnbc.com/quotes/SHWZ?tab=profile.
- ↑ Industry Leading Cannabis Cultivation Consulting – Medicine Man Website.
- ↑ CORPORATE OVERVIEW - Schwazze, A House of Brands – Schwazze Website. Retrieved on 12/28.2022.
- ↑ SCHWAZZE BRINGS TOTAL RETAIL DISPENSARY COUNT TO 40; ANNOUNCES COMPLETION OF LIGHTSHADE LABS LLC TRANSACTION IN COLORADO AND AN ADDITIONAL R.GREENLEAF STORE OPENING IN NEW MEXICO – Yahoo Finance. Accessed on 12/28/2022.
- ↑ Schwazze Announces Third Quarter Results – Schwazz News and Press Releases.
- ↑ Why Invest in SCHWAZZE? - Schwazze CORPORATE PRESENTATION | DECEMBER 2022, page 4. Retrieved on 12/28/2022.
- ↑ BOARD OF DIRECTORS – Schwazz official website. Retrieved on 12/28/2022
OTC Symbol: SHWZ | OTC Tier: OTCQX U.S.
