WHY DO SCHWAZZE’S DEALS KEEP COLLAPSING?

In recent months, Schwazze, formerly Medicine Man Technologies, which aims to be a major vertically integrated player in Colorado’s business-friendly REC market, has seen several announced deals fall through.
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• The company turned heads in December 2019 when it tapped Justin Dye, a former Chief Administrative Officer of supermarket chain Albertsons, to lead its expansion. The thinking was he’d bring the rigor of a major business to an industry that sometimes lacks it.
• But the company has seen a string of deals announced before Dye’s tenure collapse.
• The truncated deals include bids for retailer Strawberry Fields for $31M, concentrates maker Dabble Extracts ($3.75M), grower Los Suenos Farms ($11.9), Medically Correct, parent company of edibles brand Incredibles, ($17.25M) and retailer Colorado Harvest Company ($12.5M).
• To close it’s biggest acquisition so far, for 13 Star Buds shops and a grow, Schwazze needs to show proof of funds by Friday. 
• Star Buds’ owner didn’t respond to requests for comment.

What’s going on?

Quick Hit

1. Multi-state operator Cresco Labs‘ CEO Charlie Bachtell discussed how the company has thrived through the pandemic.
   AP
2. The IRS is creating a cannabis audit team to step up pot tax enforcement.
   Bloomberg Tax (Paywall)