Schwazze has closed the transaction to acquire the assets of Southern Colorado Growers in Huerfano County. The acquisition includes 34 acres of land with outdoor cultivation capacity, as well as indoor, greenhouse, and hoop house cultivation facilities and equipment.
The consideration for the acquisition is $6.8 million for the business and $4.5 million for the real estate and farm assets. A total consideration of $11.3 million was paid as $5.9 million of cash and $5.4 million in Schwazze common stock upon closing.
"Our team is excited to add SCG, a premier cannabis cultivator, to our growing platform. This acquisition will provide premium quality flower to our 19 Star Buds Colorado locations. In addition, the SCG garden will significantly increase our capability to produce a substantial amount of biomass for our Purplebee's distillate manufacturing operation, which will benefit the entire cannabis industry throughout the state. The addition of SCG to our portfolio is expected to provide a positive margin impact for Schwazze," said Justin Dye, Schwazze's CEO.
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