Green Thumb Industries Closes on Acquisition of Dharma Pharmaceuticals; Enters Virginia Cannabis Market

Rhea-AI Summary

Green Thumb Industries (GTBIF) has acquired Dharma Pharmaceuticals, expanding its presence into Virginia, the first Southeastern state to legalize adult-use cannabis. This acquisition adds a production facility and retail location, increasing Green Thumb's retail footprint to 59 locations across 13 states. Virginia's legal cannabis market is projected to generate over $1.5 billion in sales, with adult-use sales expected to commence in January 2024. CEO Ben Kovler highlights the transaction as a significant win for shareholders.

Positive

• Acquisition extends Green Thumb's reach into Virginia's legal cannabis market.
• Increases retail presence to 59 locations nationwide.
• Virginia's market forecasted to generate over $1.5 billion in legal cannabis sales.

Negative

• None.

• Acquisition includes open and operating production facility and one retail location
  
• Transaction expands Company into the first adult-use cannabis market in the Southeastern U.S.
• Increases national presence to 13 states; 59 retail locations nationwide
  

CHICAGO and VANCOUVER, British Columbia, July 01, 2021 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ Dispensaries, announced it has closed on its acquisition of Dharma Pharmaceuticals LLC (“Dharma”), previously announced on May 3, 2021. As one of only five licenses in the Virginia medical cannabis market, Dharma is licensed to grow, process and retail cannabis directly to patients.

“In a limited-license market with a population of nearly 8.5 million people, this transaction is a major win for our shareholders, and we are ready to welcome Dharma officially to the Green Thumb team,” said Green Thumb Chief Executive Officer and Founder Ben Kovler. “Expanding into the first state to pass adult use cannabis in the Southeastern U.S. is an important milestone for Green Thumb and we are excited for the future.”

The acquisition includes an existing production facility and retail dispensary located in Abingdon, Virginia. Green Thumb will also maintain the opportunity to open up to five additional retail locations in the Commonwealth.

Virginia became the first Southeastern state in the United States to legalize adult-use cannabis after the Virginia General Assembly approved legislation on April 7, 2021. The law went into effect on July 1, 2021 with adult-use sales expected to commence in January 2024. With a population of nearly 8.5 million, Virginia is expected to generate over $1.5 billion in legal cannabis sales.

About Green Thumb Industries:

Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection. The company also owns and operates rapidly growing national retail cannabis stores called Rise™ Dispensaries. Headquartered in Chicago, Illinois, Green Thumb has 15 manufacturing facilities, licenses for 110 retail locations and operations across 13 U.S. markets. Established in 2014, Green Thumb employs over 2,700 people and serves thousands of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and a Best Workplace by MG Retailer magazine in 2018 and 2019. More information is available at www.GTIgrows.com.

Investor Contact:	Media Contact:
Jennifer Dooley	Grace Bondy
Chief Strategy Officer	Manager, Corporate Communications
InvestorRelations@gtigrows.com	gbondy@gtigrows.com
310-622-8257	517-672-8001

Source: Green Thumb Industries

FAQ

What is the significance of Green Thumb's acquisition of Dharma Pharmaceuticals?

The acquisition allows Green Thumb to enter Virginia's adult-use cannabis market, expanding its operations and potential revenue streams.

How many retail locations does Green Thumb have after acquiring Dharma Pharmaceuticals?

After the acquisition, Green Thumb operates 59 retail locations across 13 states.

When is adult-use cannabis expected to begin sales in Virginia?

Adult-use cannabis sales in Virginia are expected to commence in January 2024.

What are the projected legal cannabis sales in Virginia?

Virginia is projected to generate over $1.5 billion in legal cannabis sales.

How does this acquisition affect Green Thumb's market position?

The acquisition strengthens Green Thumb's market position by facilitating entry into a new state with significant growth potential in the cannabis sector.