MDCL stock continues to move higher for the third straight session after Medicine Man Technologies Inc (OTCQX:MDCL) announced the completion of an initial $14 million strategic investment from Dye Capital & Company.
Medicine Man Technologies
In a fresh development, Denver-based vertically integrated cannabis company Medicine Man Technologies announced that it has reached an agreement by way of which $14 million worth of the company’s common stock was being sold from an affiliate of Dye Capital. This is a highly important move since Dye Capital is a company that has vast experience in building and scaling up businesses in the retail sector.
The proceeds from the sale of the common stock are going to be used to build the brand, develop new products, and enhance general capabilities, as the company tries to become a major player in the US.
MDCL stock is up 3% and trading at $3.94 on the OTC market at the time of writing.
Two Cannabis Acquisitions in Colorado
This is not the only positive news coming from Medicine Man Technologies. Yesterday, MDCL announced its acquisition of the largest cannabis grower in the state of Colorado. Although medical marijuana is not yet legal in most states in the United States, a new investment law passed by the state of Colorado allowed the investment to go through. That being said, the exact terms of the deal are not yet known.
MDCL stock went up almost 10% in yesterday’s session and closed at $3.83.
Medicine Man actually acquired two outfits; one is the cannabis grower called Los Suenos Farms, and the other is MesaPur. MesaPur operates dispensaries and produces cannabis-infused products.
The deal could be completed because the state of Colorado changed the laws and allowed investors from outside the state to invest in marijuana companies in the state. Medicine Man is determined to grow and scale up quickly, and as a result, it has been acquiring companies in the industry quite aggressively over the past few months.
As a cannabis industry lobbyists put it, it is interesting that the deal went through despite a rulemaking process that is still to be completed by the state.
MDCL stock is up a whopping 185% so far this year and recently made a new 52-week high of $4.17.
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