CHICAGO and VANCOUVER, British Columbia, March 09, 2020 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ and Essence retail stores, today announced it has closed on a transaction to sell its Oglesby, Illinois cultivation and processing facility to Innovative Industrial Properties (IIP) (NYSE: IIPR). GTI will lease back the facility via a long-term agreement and continue to operate and manage it.
IIP’s total investment in the property will be $50 million, assuming full reimbursement for significant facility and capacity enhancements of up to $41 million as well as the $9 million purchase price for the property, excluding transaction costs. This marks GTI’s third transaction with IIP, following sale-leasebacks for GTI’s cannabis cultivation and processing facility in Danville, Pennsylvania completed in November 2019 and its Toledo, Ohio processing facility in February 2020.
“The highest ROIC in global cannabis today is in wholesale capacity expansion in our home state of Illinois,” said GTI Founder and CEO Ben Kovler. “IIP is a proven long-term real estate capital partner and provides us with another flexible real estate capital solution that allows us to put our capital to work in the best way possible. With the introduction of Illinois’ adult-use cannabis program this year, we continue to ramp up production to meet the demand from cannabis consumers and patients.”
In addition to the manufacturing facility in Oglesby, GTI owns a cultivation and processing facility in Rock Island and seven stores throughout Illinois with licenses to open three additional retail locations. Adult-use cannabis sales began in Illinois on January 1st, and have generated nearly $75 million in revenue in the first two months and over $10 million in tax revenue in the month of January. Medical sales in January were approximately $25 million. Experts estimate the Illinois market potential is $2.5 billion or more after maturation.
“We are thrilled to expand our relationship with Green Thumb, one of the country’s leading regulated cannabis operators,” said Paul Smithers, President and Chief Executive Officer of IIP. “This investment enables GTI to significantly expand their consumer products manufacturing capacity and reflects our belief in their continued success in serving the growing demand.”
About Green Thumb Industries:
Green Thumb Industries (GTI), a national cannabis consumer packaged goods company and retailer, is dedicated to providing dignified access to cannabis while giving back to the communities in which they serve. GTI 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™ and Essence. Headquartered in Chicago, Illinois, GTI has 13 manufacturing facilities, licenses for 96 retail locations and operations across 12 U.S. markets. Established in 2014, GTI employs approximately 1,700 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business and MG Retailer magazine in 2018 and 2019. More information is available at GTIgrows.com.
Cautionary Note Regarding Forward Looking Information
This press release contains statements which may constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of GTI with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect,” or similar expressions and include information regarding the future direction and business objectives of GTI. The forward‐looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances and expectations relating to general economic and market conditions. Any forward‐looking information speaks only as of the date on which it is made, and, except as required by law, GTI does not undertake any obligation to update or revise any forward‐looking information, whether as a result of new information, future events or otherwise. The forward‐looking information in this news release is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those express or implied. When considering these forward‐looking statements, readers should keep in mind the risk factors and other cautionary statements in GTI’s public filings with the U.S. Securities and Exchange Commission at www.sec.gov, including the risk factors set out in GTI’s registration statement on Form 10, as amended and the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
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