Green Thumb Industries Closes Transaction to Acquire Vertically Integrated Cannabis Business in Rhode Island

Rhea-AI Summary

On August 2, 2021, Green Thumb Industries (GTBIF) announced the acquisition of Mobley Pain Management and Wellness Center, LLC, and Canwell Processing, LLC, securing one of only three vertical licenses in Rhode Island. This strategic move enhances Green Thumb's distribution footprint in New England, bringing its retail presence to 61 locations across 14 states. The Rhode Island cannabis market reported $60 million in retail sales for FY 2020, positioning Green Thumb to capitalize on immediate market opportunities and expand access to cannabis products.

Positive

• Acquisition of one of only three vertical licenses in Rhode Island, including a production facility and dispensary.
• Expansion into a lucrative market with approximately $60 million in retail cannabis sales for the 2020 fiscal year.
• Increases operational scale and distribution footprint in New England, enhancing market presence.

Negative

• None.

• Acquisition of one of only three vertical licenses in Rhode Island, including an operating production facility and open retail location
• Expands distribution footprint in highly populated New England market
• Increases national presence to 14 states; 61 open retail locations nationwide
  

CHICAGO and VANCOUVER, British Columbia, Aug. 02, 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 today it has closed on the acquisition of Mobley Pain Management and Wellness Center (DE), LLC and Canwell Processing (Rhode Island), LLC, which both held contractual interests in Summit Medical Compassion Center, Inc., a non-profit corporation with vertically integrated cannabis operations in Rhode Island. The acquisition includes one of only three retail locations in the state.

“Entry into the Rhode Island cannabis market further strengthens Green Thumb’s position on the East Coast, a region that has embraced the freedom for adults 21+ to choose cannabis,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “This acquisition provides immediate scale within a limited license market and sits squarely in our enter, open, scale strategy to expand access to well-being through cannabis. We are ready to welcome the Summit team aboard Green Thumb’s front row seat to the Great American Growth Story.”

The acquisition includes entry into Rhode Island with management agreements for one of only three vertical licenses in the state including a production facility and dispensary, both located in Warwick. The state reported approximately $60 million in retail cannabis sales for the 2020 fiscal year-end.

With the acquisition, Green Thumb has cannabis operations to serve nearly 50% of the United States population, including in: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.

"I'm honored our business will become a part of an industry-leading company that is a respected and award-winning employer known for giving back to the communities it serves,” says Steve Harrington, Principal Owner, Canwell. “The expanded reach of Green Thumb's quality branded products and extraordinary retail experience is a big win for the state of Rhode Island and its patients."

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 16 manufacturing facilities, licenses for 111 retail locations and operations across 14 U.S. markets. Established in 2014, Green Thumb employs over 3,000 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		Corporate Communications
InvestorRelations@gtigrows.com		gbondy@gtigrows.com
310-622-8257		517-672-8001
Source: Green Thumb Industries

FAQ

What did Green Thumb Industries acquire on August 2, 2021?

Green Thumb acquired Mobley Pain Management and Wellness Center, LLC, and Canwell Processing, LLC in Rhode Island.

How does the acquisition impact Green Thumb's market presence?

The acquisition expands Green Thumb's reach to 61 retail locations across 14 states, solidifying its presence in the New England cannabis market.

What is the significance of Green Thumb's acquisition in Rhode Island?

The acquisition includes one of only three vertical licenses in Rhode Island, providing immediate access to a retail location and production facility.

What were the retail cannabis sales in Rhode Island for FY 2020?

Rhode Island reported approximately $60 million in retail cannabis sales for the fiscal year ending 2020.

How many states does Green Thumb operate in after the acquisition?

With this acquisition, Green Thumb operates in 14 states.