Medicine Man Technologies Reports Third Quarter 2017 Results

Medicine Man Technologies Inc. (OTCQB: MDCL), one of the United States’ leading cannabis branding and consulting companies, reported financial results for the quarter ended September 30, 2017.
Financial Highlights, 3 Months of Operations:

Revenues increased by 292% to $928,624 in the third quarter of 2017, from $236,593 in the same period in 2016, driven primarily by a 151% increase in consulting/licensing based revenues ($584,984 in Q3 2017, compared with $233,500 in the same period in 2016) and the contribution of the newly acquired Pono Publications and Success Nutrient businesses, for which there were no prior year revenues reported;
The acquisition of Pono Publications and Success Nutrients, providing next generation industry leading cannabis cultivation technologies and products, generated new sources of revenues of $340,263 in third quarter of 2017;
The Company had 19 full time team members at the end of the third quarter of 2017, compared to 4 at the end of the third quarter of 2016. Growth in staffing levels was required to meet the demand created by additional new clients, as well as the Company’s ability to meet expected service levels.

Business Highlights, 3 Months of Operations:

The Company completed its acquisition of the Denver Consulting Group, adding three new full-time members to its team;
The Company entered into fifteen new license and or service agreements, as compared with four new clients added over the same period in 2016;
The Company initiated a new equity funding element (Regulation D, Rule 506(b) filing), raising $1.055M in the third quarter of 2017 ($1M from a single accredited investor);
In late September, the Company’s two Cultivation MAX clients in Nevada completed their initial cultivation refresh process guidance, which will result in performance improvement revenue generation in the fourth quarter of 2017;
The Company noted a substantial increase in California based inquiries, as well as active clients, ending the third quarter of 2017 with five California based cultivation clients, compared with one cultivation client at the end of the same period in 2016.

“We are pleased with our third quarter results, during which we saw a significant expansion of our fee generating client base, which we expect to result in an increase in our future revenues as the associated work and deployments are fulfilled,” commented Brett Roper, Chief Executive Officer.

“We have also completed the integration of Pono Publications, Success Nutrients, and the Denver Consulting Group into our Medicine Man Technologies family, which we expect to continue to drive revenue growth. We are excited by the near-term prospects to drive organic revenue growth from both our products and services. Furthermore, our initial two Cultivation MAX clients in Nevada completed their cultivation refresh work in late September and are expected to begin generating revenue in the fourth quarter.”

Mr. Roper added, “During the third quarter, Medicine Man further bolstered its balance sheet by raising more than $1 million from the sale of stock to one accredited investor, as well as to Company executives. As a result, we believe we are well positioned to continue to execute on our Brand Warehouse acquisition strategy, seeking synergistic companies and brand partners across the cannabis industry that can support our U.S. and international expansion plans. Once we reach our interim funding target, we also plan to retire all of our remaining convertible debt obligations.”
Financial Highlights, 9 Months of Operations:

Revenues increased by 302% to $2,351,752 in the first nine months of 2017, from $585,388 in the same period in 2016, driven primarily by consulting/licensing based revenue growth of 190% ($1,653,902 in the first nine months of 2017, compared with $570,135 during the same period of 2016) and the contribution of the newly acquired Pono Publications and Success Nutrient businesses, for which there were no prior year revenues reported;
The acquisition of Pono Publications and Success Nutrients generated $691,611 of revenue in the first nine months of 2017 (no first quarter 2017 revenues are reflected in the nine month results, prior to the closing of the respective acquisitions);
Total Shareholder Equity increased substantially to $10,395,862 for the first nine months of 2017, from ($376,326) during the same period in 2016;
Current Assets increased by 265% to $1,807,737 in the first nine months of 2017, from $682,017 in the same period in 2016, driven primarily by positive changes in cash and receivables;
At September 30, 2017, the Company’s cash position was $927,884, compared with $351,524 at December 31, 2016.

Business Highlights, 9 Months of Operations:

The Company has now completed three acquisitions (Pono Publications, Success Nutrients, and the Denver Consulting Group);
The Company had 59 active clients as of the end of the first nine months of 2017, compared with 19 active clients at the end of the same period in 2016. This substantial increase in our client base was due to of the Company’s expansion of its product and services lines;
The Company has secured new equity capital and has dramatically increased both its industry presence internationally as well as in several new states to date in 2017;

“The Company remains encouraged by the prospects for rapid expansion of its product and service footprint, , for which we are providing indoor cultivation facility designs and guidance. Domestically, the Company’s Denver Consulting Group (DCG) team secured a dispensary license for a Long Beach, California client, and the DCG unit accounted for ten accounts from Medicine Man’s current client base. In addition, we look forward to attending the Marijuana Business Daily ‘MJBizCon’ event as one of three Platinum Sponsors in Las Vegas, November 15-17, which is the largest gathering of cannabis industry participants in 2017,” (https://mjbizconference.com/) concluded Mr. Roper.