Green Thumb Industries (CSE: GTII), a large-scale producer of packages goods and owner of national retail chain RISE, announced that it had finalized an agreement to acquire Advanced Grow Labs LLC (AGL). The transaction, valued at USD 80 million, would see the company acquire a significant foothold in the Connecticut market.
AGL holds the distinction of being one of the only licensed companies in Connecticut, alongside three others, that have the approval to grow and process cannabis. Additionally, the company operates a 41,000 square foot manufacturing facility and also has a 46 percent take in a new dispensary slated to be in Westport.
“We are thrilled that AGL is joining the GTI team and look forward to continuing to serve Connecticut communities with high-quality cannabis products. AGL is a highly successful company in a limited license state with a fantastic management team that will continue to run the business. We are full steam ahead executing on GTI’s expansion plans as we look to create shareholder value,” said GTI Founder and CEO Ben Kovler.
Once the AGL transaction proceeds through, Green Growth Industries will have over 12 manufacturing facilities to their name, alongside licenses for over 85 retail stores throughout 11 states. Connecticut’s medical cannabis program in particular has over 30,000 patients with around 1,000 registered physicians. In the state, there are 31 qualifying conditions that permit the use of marijuana as a treatment, but the program also remains open for additional conditions and recommendations on a case by case basis. Overall, the state has 18 dispensaries and four processing and cultivation facilities, a figure that should be higher considering the state’s 3.6 million population.
“This transaction is an example of that given attractive multiples. In the past two months alone, we announced the acquisition of Nevada-based Integral Associates; were awarded additional retail licenses for 12 stores in Pennsylvania; and entered the New Jersey market with a cultivation, processing and retail license win,” Kovler added. “We are now solidly positioned in the tri-state area with our entry into Connecticut via AGL. The momentum is strong.”
In response to the news, Green Thumb Industries short up 9.7 percent in today’s trading session. In comparison, the Dow Jones inched up only 98 points, or 0.4 percent, while other industry giants such as Aurora Cannabis, Tilray, and Canopy Growth stayed relatively unchanged by the end of the day.
Green Thumb Industries Company Profile
Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals.
The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE™. Headquartered in Chicago, Illinois, GTI has nine manufacturing facilities and licenses for 72 retail locations across nine highly regulated U.S. markets. Established in 2014, GTI employs approximately 500 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business. – Green Thumb Industries