Even a medicine man has bills to pay.
Medicine Man Denver completed a $1 million funding round with the intent of using the capital to acquire two Colorado companies and an Ohio firm that specializes in producing packaging for cannabis products. Medicine Man COO Brett Roper said the acquisitions, if completed, would help the cannabis consulting side of the business provide more robust services.
Medicine Man is acquiring Pono Publications, a cannabis-focused media company that publishes cultivation guides and other publications. As part of its acquisition of Pono Publications, Medicine Man is also purchasing the Success Nutrients line of cannabis fertilizers.
Both Pono Publications and Success Nutrients are based in Denver. The acquisition is expected to close Nov. 9.
“The integration of both companies will be very smooth, with Pono’s Josh Haupt transitioning to our chief cultivation officer,” Roper said.
Medicine Man is also moving to acquire Capital G. Based in Cleveland, a firm that manufacturers odorless bags and other types of packaging for the cannabis industry. Roper said he hopes that acquisition will close this quarter.
A Securities and Exchange Commission filing dated Oct. 21 stated $500,000 had been raised in a debt security offering, with the first sale occurring in August. Roper confirmed that the other $500,000 needed to close the funding round had been raised since the filing.
Roper said the funding came from “about a dozen” family and friends of Medicine Man executives.
“The company is strong enough that it hasn’t had to rely on what I’d call abusive capital solutions,” said Roper, who added that the securities included a stock-conversion feature.
Brothers Pete and Andy Williams started Medicine Man in 2009 as a medical and later recreational dispensary. The company lists two dispensaries in Denver and Aurora.
They teamed up with Roper in 2013 to spin off a consulting business, Medicine Man Technologies. It works with clients in 12 states to start dispensary and cultivation facilities, manage inventory and packaging, establish best grow practices and advise with licensing, among other consulting services.
Medicine Man Technologies currently has five employees. Roper said part of capital boost would be used to hire up to two additional employees in the coming months.