Green Thumb Industries announced its entrance to the Connecticut cannabis market through the acquisition of Advanced Grow Labs.
Green Thumb Industries (GTI) (CSE:GTII) announced its entrance to the Connecticut cannabis market through the acquisition of Advanced Grow Labs (AGL).
As quoted in the press release:
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,” said GTI Founder and Chief Executive Officer Ben Kovler. “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.
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 [US]$80 million which includes [US]$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.