Green Thumb Industries (GTI) Enters Connecticut Market with Acquisition of Advanced Grow Labs LLC
Transaction Firmly in Line with GTI’s Strategic Expansion Plans to Distribute Brands at Scale
- One of only four cultivation and processing facilities in Connecticut with a 41,000 square foot facility in West Haven
- Includes ownership of first dispensary slated for Westport, Connecticut
- Positioned for expansion to meet state’s growing demand
- Acquisition has attractive multiples and is accretive to shareholders
CHICAGO and VANCOUVER, British Columbia, Jan. 07, 2019 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF), a national cannabis consumer packaged goods company and owner-operator of the high growth national retail chain RISE™, announced today that it has signed a definitive agreement to acquire Advanced Grow Labs LLC (AGL) and enter the Connecticut market. AGL is one of only four companies in Connecticut licensed to grow and process cannabis. The Connecticut-based cannabis company operates a 41,000 square foot manufacturing facility in West Haven with the potential to expand. In addition, AGL has a 46 percent ownership of a recently-awarded dispensary that will be located in Westport which makes it the only vertically licensed company in the state. AGL produces and distributes a wide range of cannabis products to every operating store in the state.
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.
GTI Founder and Chief Executive Officer Ben Kovler
This transaction is an example of that given the 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. We are now solidly positioned in the tri-state area with our entry into Connecticut via AGL. The momentum is strong.
Upon the close of AGL and the other recently announced acquisition, GTI will have 12 manufacturing facilities and licenses for 85 retail locations across 11 states.
“We could not have picked a better partner than Green Thumb Industries, an industry leader that shares our values, commitment to producing high-quality brands and dedication to giving back to the communities we serve,” said AGL Founder and Chief Executive Officer David Lipton. “Our business is poised to expand to meet the growing needs of the state’s medical marijuana patients and this partnership with GTI will support that expansion.”
The Connecticut medical marijuana program currently has more than 30,000 patients and over 1,000 registered physicians. The program has 31 qualifying conditions and accepts petitions from the public to consider adding additional conditions for which medical marijuana can be useful. With a population of about 3.6 million, the state has four cultivation and processing sites and 18 dispensaries.
Transaction Details: The transaction is valued at approximately $80 million which includes $15 million to be paid in cash and 7.0 million Subordinate Voting Shares of GTI. The purchase agreement also includes additional consideration based on performance targets and up to an additional 1 million Subordinate Voting Shares of GTI subject to pricing conditions prior to closing. The arms-length transaction is expected to close in the first quarter of 2019, subject to customary regulatory approvals.
*All currency is in US dollars.
About Green Thumb Industries
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. More information is available at GTIgrows.com.
