Schwazze added to its growing list of scuttled deals by terminating its planned acquisition of a fellow Denver-based cannabis company, infused edibles manufacturer Canyon.
According to the company’s 8-K filing on Oct. 9, the term sheet that detailed Schwazze’s purchase of all of Canyon’s assets expired Sept. 7.
The original agreement, one of 11 acquisitions Schwazze made in 2019, was a $5.1 million cash and stock deal that would have limited the company to paying no more than $2.6 million in cash for the 10-year-old Canyon.
Before Schwazze backed away from a previous deal – an acquisition of Denver-based medical marijuana company MedPharm – the company said it had moved forward on numerous term sheets with Colorado cannabis operators but had completed limited due diligence at that time.
The Canyon move was part of Schwazze’s updated acquisition strategy.
Several of Schwazze’s deals to purchase Colorado-based businesses have been scrapped, including acquisitions of:
Schwazze was known as Medicine Man Technologies until the company rebranded in April.