Green Thumb Industries Inc., which is one of the six new Alternative Treatment Center license winners in New Jersey, is also expanding its operations to Connecticut.
The national cannabis consumer packaged goods company and owner-operator of the national retail chain RISE announced it has signed a definitive agreement to acquire Advanced Grow Labs LLC.
AGL is one of only four companies in Connecticut licensed to grow and process cannabis and 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 full steam ahead executing on GTI’s expansion plans as we look to create shareholder value. This transaction is an example of that given the attractive multiples,” said GTI Founder and Chief Executive Officer Ben Kovler. “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.
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.