DENVER, CO / ACCESSWIRE / October 21, 2016 / Medicine Man Technologies Inc. (OTCQB: MDCL), one of the country's leading cannabis branding and consulting companies announced yesterday via an 8K filing that it has added eight new licensing clients in October including five in Pennsylvania, two in Puerto Rico, and one in Florida. It further noted the addition of two clients in California under its new Cultivation MAX services product bringing the total new clients added in October to ten. Within that 8K the Company also noted a status update on its previously announced acquisitions as well as a successful funding initiative close as described herein.
Brett Roper, the Company's Co-Founder noted, "We are continuing to grow our existing client base and are very pleased to add these new groups to our existing clients in Arizona, California, Florida, Maryland, Nevada, Oregon, Ohio, Oklahoma, Ohio, Pennsylvania, Texas, and Puerto Rico."
In yesterday's 8K filing the Company noted that it had previously reported execution a binding term sheet on Aug. 12, 2016, whereby we agreed to acquire Pono Publications Ltd. ("Pono") and Success Nutrients, Inc. ("SNI"), both Colorado corporations, in consideration for the issuance of an aggregate of 7 million shares of our common stock. While we continue to negotiate the terms of a definitive agreement with Pono and SNI, and complete due diligence efforts, on Oct. 18, 2016, we executed an Interim Products and Services Support Agreement with both companies (the "Interim Agreement"). This Interim Agreement is intended to act as a "bridge" to allow us to work with both Pono and SNI to perpetuate our respective business plans and take advantage of our respective synergies during the time the definitive agreements are being completed. Through this agreement we will share net revenues with Pono and SNI, as applicable and expect to also benefit from the anticipated generation of new clients, and sharing of intellectual property.
In yesterday's 8K filing, the Company noted that it had previously reported signing a non-binding term sheet to acquire Capital G Ltd, an Ohio limited liability company and its three wholly owned subsidiary companies, Funk Sac LLC, Commodigy LLC, and OdorNo LLC, in consideration for the issuance of an aggregate of 1.3 million shares of our common stock. We believe that this transaction remains viable; however, the due diligence efforts are taking longer than expected. While we remain optimistic that this acquisition will be successful, the successful closing of this transaction is dependent on the outcome of our due diligence. As part of the terms included in the term sheet, we have fulfilled our agreement with Capital G Ltd. To provide funding for its operations over the past several months in the form of $250,000 in convertible debt. This note is for a one-year term and accrues interest at 12% per annum.
Andy Williams, the Company's CEO and Co-Founder added, "As we work to wrap up these synergistic acquisitions, we will continue to search for growth opportunities that will help expand our value proposition to our clients and partners and to add new lines of revenue through products and services that drive the evolution of the cannabis industry. We will continue to focus on building our brands warehouse to offer a more efficient delivery of marketing and corporate services. This November's election will mark the latest opportunity for the cannabis industry to expand into new states and create further opportunities for Medicine Man Technologies to help them do it."
The Company further announces that it has just launched a new product branded Cultivation MAX, wherein we are providing cultivation advisory services to existing operators desiring to increase their yields through deployment of our combined efficiencies. We anticipate revenues related to this new deployment to include design fees as well as income derived by formula arising from the anticipated improvement experienced in our client's cultivation practices. While no specific assurances can be provided, we believe this future income stream may be substantial based upon current performance levels noted in the cannabis cultivation landscape within states allowing for access of such related products.
The Company also announced that effective Friday, Oct. 14, 2016, we engaged in an initial closing of private offering of convertible notes in the aggregate amount of $500,000 from four accredited investors in which there we no fees or commissions required. Our anticipated use of proceeds of these funds will be related to 1) cost of consummating the acquisitions described herein; 2) hiring additional employees in anticipation of our continued growth; 3) additional marketing and industry presence advertising; and 4) working capital, including capital to be used in expanding our 'branding warehouse' approach to support growth.
The Company will also continue to be a Platinum level sponsor of the industry's largest conference, to be held in Las Vegas Nevada in November and as held by Marijuana Business Daily noting information for this even that can be found at https://mjbizconference.com/.
About Medicine Man Technologies
Established in March 2014, the Company secured its first client/licensee in April 2014. To date, they have provided guidance for several clients (Colorado, Nevada, and Illinois) that have successfully secured licenses to operate cannabis businesses within their state. They currently have twenty-four active clients in 13 states, focusing on working with licensees and clients to 1) utilize its experience, technology, and training to help secure a license, 2) deploy the Company's highly effective variable capacity constant harvest cultivation practices and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, and 4) stay engaged with an ever expanding team of licensees all focused on quality and safety that will 'share' the ever improving experience and knowledge of the network.
Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks as well as uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues as well as any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Company may not be able to sustain growth or achieve profitability based upon many factors including but not limited to general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing as well as new service lines noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations we will be providing services in, the impact of which cannot be predicted at this time.
Contact Information:
Attention Brett Roper via [email protected]
Telephone (303) 371-0387
Website www.medicinemantechnologies.com
SOURCE: Medicine Man Technologies Inc.