Medicine Man Technologies, Inc. (OTC: MDCL) said Monday it has entered into a binding term sheet with the award-winning Colorado-based cannabis concentrate brand Dabble Extracts.

Under the terms of the agreement, Medicine Man will pay $3,75 million for the company: $750,000 in cash and 996,678 common stock shares at $3.01 each.

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Why It Matters

Medicine Man said it pursued the acquisition for a number of strategic benefits.

Dabble has unique methods for producing shatter and wax concentrates and a patent-pending shatter making process, according to the announcement.

Dabble's reputation as a premier producer adds further value to Medicine Man's portfolio as well, the cannabis company said.

The extract producer holds awards from the THC Championship and High Times' Dope Cup.

"The proposed acquisition of Dabble Extracts will further enhance our product portfolio, as it will bring the expertise and unique extraction capabilities necessary to create high-quality cannabis concentrates in the form of shatter and wax products," Andy Williams, Medicine Man's co-founder and CEO, said in a statement.

Medcine Man shares were trading higher by 2.53% at $2.84 at the time of publication Monday.

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