Cannabis multi-state operator Green Thumb Industries Inc. or GTI (GTII.CN) (GTBIF) reported that its third-quarter 2018 ending in September revenues increased 344% year-over-year to $17.2 million. Sequentially revenues increased 26%. The company attributed the rise in revenue to increased distribution of branded products, new store openings, and the start of adult use cannabis sales in Nevada.
The company statement said that GTI has operating revenue in five of its eight markets: Nevada, Illinois, Pennsylvania, Massachusetts, and Maryland and has increased capital investments related to the buildout of new markets in Florida, Ohio and New York in preparation for revenue generation in the first half of 2019.
Still, the company delivered a net loss of $3.3 million which was a decline sequentially from net income of $0.4 million in the second quarter of 2018. It was also a larger loss than last year’s $1.2 million for the third quarter of 2017.
“We have been focused on expanding wholesale capacity to meet increasing demand, opening new RISE stores and are unwavering in our diligent effort building a world-class team. To support our strong retail pipeline, we added experts to the team in retail operations, real estate, design and construction, and marketing and communications from retail giants such as Nordstrom, Starbucks, Home Depot, Whole Foods, Apple and Nike. We are excited about what’s ahead for RISE as we accelerate the growth of this exceptional business,” said GTI Founder and Chief Executive Officer Ben Kovler.
As of September 30, 2018, the company’s filing said that total assets were $297.6 million, including cash and cash equivalents of $149.8 million and long-term liabilities of $9.3 million. GTI has $7.6 million of total debt, $1.5 million of which is due within 12 months.
GTI said that it plans to more than double the RISE retail stores over the next 12 months. In Florida, the company signed nine leases for RISE dispensaries in high-traffic locations throughout the state, including West Palm Beach, Port St. Lucie, Deerfield Beach, Hallandale Beach, Delray Beach, Bonita Springs, Pinellas Park, Oakland Park, and Kendall.
In Pennsylvania, GTI opened a RISE store in partnership with KW Ventures Holdings LLC and the company expects to close the acquisition of KW Ventures Holdings in the first quarter of 2019. In Ohio, there is progress on the buildout of five stores in the pipeline.
Last month, GTI closed on a bought deal financing transaction raising $78.8 million, which included proceeds following full exercise by underwriters of their over‐allotment option. The company said it intends on using net proceeds from the offerings for business development, including wholesale capacity, strategic initiatives and working capital.
“We closed on the acquisition of KSGNF to operate in Florida, closed on the acquisition of an extraordinary retail asset in Boston, and are on track to more than double our footprint in the only limited license adult use market in the country with the strategic acquisition of Nevada’s top operator, Integral Associates, announced earlier this month,” Kovler continued. “All are important milestones as we position the business for long-term success by distributing brands at scale.”