GTI Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 28, 2019
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3min9110

Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported that its second-quarter revenue increased 228% to $44.7 million for the period ending June 30, 2019, over last year’s $13.6 million.  Revenue grew 60% over the first quarter of 2019. The company said that the revenue growth was driven by organic growth across GTI’s consumer products and retail businesses, strategic acquisitions and increased store traffic.

Still, GTI delivered a net loss of $22.2 million versus a net loss of $9.7 million in the first quarter. The loss was attributed to a decrease in value from a variable note receivable in other income and debt-related interest expenses.

“We are pleased to report another solid quarter of positive yet disciplined momentum with record revenue and positive adjusted operating EBITDA as our strategic plan delivers on operating efficiencies from scale. Continued execution of key priorities such as the closing of Integral Associates, accelerated store openings, and expanded distribution of our brand portfolio sets us up well for the future,” said GTI Founder and Chief Executive Officer Ben Kovler. 

Expenses Rise

The company saw a heavy increase in total operating expenses to $32.5 million versus $12.1 million for the same period last year and $26.1 million in the first quarter. The company said that increased headcount contributed to the rising expenses as the company grow and also non-cash expenses related to stock-based compensation of $6.3 million for the quarter.

In May, the company closed on a $105.5 million senior secured non-brokered private placement of notes. GTI said it plans to use the proceeds for general working capital purposes, strategic growth initiatives and to retire existing debt.

Balance Sheet

As of June 30, 2019, GTI had cash and cash equivalents of $135.8 million and long-term liabilities of $153.4 million, plus $96.3 million in total debt.

“We are deep in the chapter of maximizing the levers in our business to drive long-term operational performance that delivers value for our shareholders and the communities in which we operate, ” Kovler continued. “We are focused on optimizing our wholesale and retail businesses, integrating our acquisitions, and further strengthening compliance across the organization.”

 


StaffStaffJune 18, 2019
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Ben Kovler brings his extensive experience managing complex operating companies and his deep commitment to philanthropy as Founder, CEO and Chairman of Green Thumb Industries. Ben founded GTI in 2014 and has successfully grown it into a national cannabis consumer packaged goods company and retailer that manufactures and distributes a portfolio of branded cannabis products including Rythm, Dogwalkers, The Feel Collection, and Beboe, among others. The company also owns and operates a rapidly growing national chain of retail cannabis stores called Rise™.

Ben is frequently featured as an industry thought leader in media outlets such as Bloomberg, Barron’s, Business Insider, CNBC and Forbes.

He is also co-founder and CEO of Invest For Kids (IFK), an annual forum bringing together portfolio managers, family offices and analysts to share investment ideas to benefit children in llinois. In its first nine years, IFK generated more than $11 million to benefit 40 youth organizations that have helped 85,000 children. Ben is also on the board of the Providence St. Mel School and the Academy for Global Citizenship.

Ben earned a Bachelor of Arts in philosophy, politics and economics from Pomona College and an M.B.A. in accounting and finance from The University of Chicago. Ben and his wife, Amy, enjoy living in Chicago with their two children.

GMR Executive Spotlight Q & A:

Full birth name: Benjamin Kovler

Title: CEO, Founder & Chairman

Company: Green Thumb Industries Inc. (commonly known as GTI)

Years at current company: Since starting the company five years ago in 2014, we now have over 1,000 team members across the country – it has been quite a humbling experience.

Education profile: Earned a Bachelor of Arts in philosophy, politics and economics from Pomona College and an M.B.A. in accounting and finance from The University of Chicago.

Most successful professional accomplishment before cannabis: In 2009, I co-founded Invest For Kids, an annual hedge fund investor conference that brings together the Chicago investment community and renowned investment managers to share their best ideas to   benefit children’s charities in Chicago. Over the past 10 years we have raised more than $14 million supporting over 60 youth organizations and 85,000 children.

Company Mission: GTI is on a mission to empower the right to wellness by progressing responsible adult use of cannabis through an authentic family of brands and people-first retail experiences while being committed to community and sustainable profitable growth.

Company’s most successful achievement: It’s difficult to name just one achievement –our incredible team, over 1,000 strong, has navigated a highly complex and rapidly evolving industry to become a market leader. GTI was among the first to go public and access the capital markets, which is just one example of our team being ahead of curve to position our business for the future.

Has the company raised any capital (yes or no): Yes

if so, how much?: Over $350 million since being founded in 2014.

Any plans on raising capital in the future?  We recently completed a $105 million debt financing which was a huge win for our business and shareholders. This type of self-conducted debt financing was the first of its kind in our industry and helps us continue to drive down the cost of capital to position our team and infrastructure for long term success.

Most important company 5 year goal: Continue to lead the industry through fast-paced regulatory change and be a place where our team can grow both professionally and personally – ultimately positioning GTI to generate over $1 billion in sales.

 


StaffStaffFebruary 5, 2019
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It’s time for your Daily Hit of cannabis financial news for February 5, 2019.

On The Site

Verano

Illinois-based Verano Holdings, LLC has acquired Four Daughters Compassionate Care Inc. of Sharon, Massachusetts and its provisional medical cannabis licenses for an undisclosed amount. The first cultivation and dispensary facilities in Sharon are expected to open in six to nine months. The company said it would hire 50-75 employees locally and train them for these sites in 2019.

As a result of the acquisition, Verano has begun building a cultivation and production facility in Sharon Massachusetts. The company is also renovating an adjacent building for the dispensary. The acquisition marks Verano’s expansion into an additional adult-use market and its expanding geographic footprint into the Northeast from its current 10 operating facilities in Illinois, Maryland, Nevada and Florida, with 45+ licenses under active development in Florida, Michigan, Ohio, Puerto Rico, and Maryland.

GTI

Green Thumb Industries Inc. (OTCQX: GTBIF) is acquiring For Success Holding Company, the owner of Los Angeles-based Beboe branded cannabis products for an undisclosed amount that will be paid in GTI stock.

Beboe is known as a premium brand for its high-end packaging including its iconic rose gold vaporizer pens. The products are available in more than 125 California and Colorado retail locations and via home delivery across California.

In Other News

Jushi

Sound Wellness LLC, a subsidiary of Jushi Inc. has received approval of its industrial hemp-CBD processor license application as part of the New York State Industrial Hemp Agricultural Research program, administered by the New York State Department of Agriculture and Markets. With this announcement, Jushi is proud to support the Western New York community, New York farmers, and the nation’s premier industrial hemp program. Sound Wellness’ hemp-CBD processor license supports the company’s initiative to create product innovations centered around the untapped potentials of hemp.

By investing over $5 million in a high-tech hemp processing operation on the east side of Buffalo, NY, Jushi expects to create approximately 30-65 jobs in the area. The facility will house a state-of-the-art lab, allowing Sound Wellness to create advanced product formulations using CBD distillate, CBD isolate, and water-soluble CBD.

The Flowr Corp.

The Flowr Corporation (OTC: FLWPF)  has submitted an application to list its common shares on The NASDAQ Capital Market and has filed a Form 40-F Registration Statement with the U.S. Securities and Exchange Commission.

Target Group Inc.

Target Group Inc. (OTCQB: CBDY) entered into an agreement to acquire Massachusetts-based CannaKorp Inc. CannaKorp is the holder of the patent-pending WISP vaporizing system.

The WISP™ is a pod-based, herbal vaporizing system that uses precisely measured, sealed and tested WISP™ Pods containing dried, ground botanicals. The WISP™  vaporizer, used together with WISP™  Pods, gives cannabis users the predictability and assurance to know what they’re inhaling with every use, without the hassle of grinding, measuring, or packing. For the rapidly evolving market of cannabis consumers who prefer vaporization, Wisp™ presents a proven method of delivery with unique bioavailability benefits and avoids the health concerns associated with the combustion of cannabis and other herbs.

Origin House

CannaRoyalty Corp. d/b/a Origin House  (OTCQX: ORHOF) entered into an agreement to provide strategic financing of US$704,000 to Humboldt’s Finest, an alliance of heritage cannabis farms representing Humboldt County. Humboldt’s Finest produces sun-grown cannabis flower on their farms in Humboldt County, California, which is processed into products including jarred flower, pre-roll flower joints, live resin dabs/jars and/or live resin cartr


Debra BorchardtDebra BorchardtFebruary 5, 2019
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Green Thumb Industries Inc. (OTCQX: GTBIF) is acquiring For Success Holding Company, the owner of Los Angeles-based Beboe branded cannabis products for an undisclosed amount that will be paid in GTI stock.

Beboe is known as a premium brand for its high-end packaging including its iconic rose gold vaporizer pens. The products are available in more than 125 California and Colorado retail locations and via home delivery across California.

“We believe authentic brands distributed at scale is the key to winning in this industry and we’ve built the national infrastructure to produce and distribute high-quality products across the country,” said GTI Founder and Chief Executive Officer Ben Kovler. “The meticulously crafted suite of Beboe products supports the premium segment within GTI’s brand portfolio and is firmly aligned with our long-term growth strategy. Beboe has an extremely talented team, a robust innovation pipeline, and an aligned vision for what cannabis can mean for enhancing everyday life, not only for today but importantly for tomorrow’s cannabis consumer.”

Beboe was co-founded by celebrity tattoo artist Scott Campbell and is a tribute to Campbell’s beloved grandmother Beboe who alleviated the cancer symptoms of Campbell’s mother by baking marijuana-infused brownies. The other co-founder is Clement Kwan who has a long history in executive roles across the fashion industry. He has been integral to the growth and success of luxury brands such as Theory, Diesel and Dolce & Gabbana. In 2012, Clement took on the role of President, heading the U.S. business of YOOX Group.

“In appreciation of all my grandmother did to bring warmth and love into our house, we started Beboe to offer the same sense of care and possibility for people like myself, high-functioning adults, who don’t have the patience for anything less than the best possible experience,” said Campbell. “Having seen the entire landscape of this industry, I truly believe in GTI. We’ve sat down in countless conference rooms of cannabis operations and funds, and it’s disheartening how many people in the space are operating with a slash and burn mentality. Rapid growth at all costs with little regard to the sustainability of growth or respect of existing cannabis culture. GTI has the resources and intent to lead the growth of the cannabis industry in a way that celebrates the plant and the irreversible culture shift that it has inspired.”

Beboe recently launched a direct-to-consumer hemp-derived CBD line of products and has launched several collaborations, including a CBD-infused drink with wellness brand Dirty Lemon. Beboe products will expand beyond California and Colorado with distribution in select GTI markets.

Kwan added, “We aligned with GTI because we agree with their strategies and philosophies.  We believe cannabis enhances the quality of life, and to be able to improve the lives of more people with Beboe’s introduction into additional stores and new markets is extremely gratifying. With the support of GTI, we will waste no time in growing Beboe brands’ availability and to help define cannabis’ place in American culture.”


Debra BorchardtDebra BorchardtNovember 27, 2018
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4min7210

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.

Balance Sheet

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.

Looking Ahead

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.”

 


William SumnerWilliam SumnerJuly 10, 2018
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3min7470

 

Green Thumb Industries (GTI), a national company focused on cannabis cultivation, dispensary operations, and packaged cannabis products, has announced that best-selling author Wes Moore would be joining its board of directors.

“I’m thrilled to join GTI’s board and help empower its efforts to revitalize neighborhoods that have been disproportionately affected by the failed war on drugs,” said Moore in a statement. “As a veteran, I applaud GTI’s efforts to expand access to medical marijuana for those who have found relief from PTSD, chronic pain and other conditions via cannabis’ medicinal benefits. I’m also impressed with the company’s entrepreneurial success story and look forward to being a part of the team that leads the company’s strategic growth going forward.”

Moore is a former combat veteran, an outspoken advocate for U.S. military veterans, and a Rhodes Scholar with degrees from Oxford University and John Hopkins University. He is most famously known for his books “The Other Wes Moore” and “The Work,” both of which made it the New York Times and Wall Street Journal bestseller lists, as well as the host of the PBS series  “Coming Back with Wes Moore.” Currently, Moore serves as the CEO of New York City’s largest poverty-fighting organization, Robin Hood. Prior to his current position, Moore also served on Robin Hood’s Veterans Advisory Committee, where he helped connect veteran families living in poverty with government and non-profits resources.

“Wes is an ideal addition to the GTI board as we look to further the company’s positive impact on the communities we serve, many of which have lost lives and economic opportunities due to mass incarceration for non-violent drug-related convictions, in some cases resulting in generational poverty,” commented GTI CEO Pete Kadens.

GTI Starts Trading on OTCQX

Over the last several months, GTI has been rapidly expanding its national footprint; acquiring multiple medical cannabis licenses in Ohio and becoming listed on both the CSE. Earlier this month, the company also announced that it would begin trading on the OTCQX market under the symbol GTBIF, effective on July 9, 2018.


StaffStaffJuly 10, 2018
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Chicago – July 10, 2018 /AxisWire/ Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF), a national cannabis cultivator, dispensary operator and consumer packaged goods company that produces and distributes a portfolio of cannabis branded products, welcomes decorated combat veteran, social entrepreneur and best-selling author Wes Moore to its board of directors. Moore is currently CEO of Robin Hood, New York City’s largest poverty-fighting organization.

“I’m thrilled to join GTI’s board and help empower its efforts to revitalize neighborhoods that have been disproportionately affected by the failed war on drugs,” says Moore.  “As a veteran, I applaud GTI’s efforts to expand access to medical marijuana for those who have found relief from PTSD, chronic pain and other conditions via cannabis’ medicinal benefits. I’m also impressed with the company’s entrepreneurial success story and look forward to being a part of the team that leads the company’s strategic growth going forward.”

“Wes is an ideal addition to the GTI board as we look to further the company’s positive impact on the communities we serve, many of which have lost lives and economic opportunities due to mass incarceration for non-violent drug-related convictions, in some cases resulting in generational poverty,” says GTI Chief Executive Officer Pete Kadens. “Another natural fit is Wes’ service to our country given GTI is dedicated to our veterans and ensuring those who need it have access to medical marijuana. Wes’ background as an entrepreneur will also be a crucial asset to GTI as we continue to strategically expand with shareholder value among our top priorities.”

Prior to being named Robin Hood’s CEO, Moore served on Robin Hood’s Veterans Advisory Board, which brought together leaders from the military, non-profits and government to connect veterans and their families living in poverty to housing, job training, education, counseling and health services.

Moore was the founder and CEO at BridgeEdU, an innovative platform addressing the college completion and job placement crisis. BridgeEdU creates intrusive and effective support for students through high-touch and high-tech platforms. He also is the executive producer and host of PBS’s “Coming Back with Wes Moore,” focusing on the reintegration of Iraq and Afghanistan veterans.

His books, “The Other Wes Moore” and “The Work,” became instant New York Times and Wall Street Journal bestsellers, capturing the nation’s attention on the fine line between success and failure in our communities.

Despite childhood challenges, Moore graduated Phi Theta Kappa from Valley Forge Military College in 1998 and Phi Beta Kappa from Johns Hopkins University in 2001. He earned a Master’s degree in International Relations from Oxford University as a Rhodes Scholar in 2004. Moore then served as a Captain and paratrooper with the U.S. Army’s 82nd Airborne, including a combat deployment to Afghanistan. He later served as a White House Fellow to Secretary of State Condoleezza Rice.

While at Johns Hopkins he founded STAND!, working with Baltimore youth involved in the criminal justice system. He has served on the boards of Iraq Afghanistan Veterans of America and Johns Hopkins University.

About Green Thumb Industries:

Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE™ dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.  More information is available at GTIgrows.com.

 

Media Contact:

Linda Marsicano

VP, Corporate Communications

lmarsicano@gtigrows.com

773-354-2004

 

Investor Contact:

Jennifer Dooley

VP, Investor Relations and Corporate Development

InvestorRelations@gtigrows.com

310-622-8257

 


Jack SmithJack SmithMay 17, 2018
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A bourbon heir is betting that the legalization of marijuana in Canada will be similar to the end of Prohibition in the U.S. and lead to untold riches.

Ben Kovler is bringing Green Thumb Industries or GTI public in Canada, according to Bloomberg, due in large part to similarities seen between the liquor industry in the 1930s and cannabis today. Speaking with Bloomberg, Kovler said he intends to bring GTI public via a reverse merger with a publicly traded Canadian company. Kovler, whose family invested $5,000 in the distiller group that would eventually become Jim Beam bourbon, is also the shareholder of GTI

According to the company’s website, Kovler founded GTI in 2014 “and has successfully grown it into a national cannabis cultivation and dispensary operator with 26 licenses across five highly-regulated U.S. markets.” Kovler is also the Chief Investment Officer of an investment partnership that allocates capital across a wide range of industries in both public and private companies. The 39-year-old Kovler believes that GTI can emulate liquor industry heavyweights and move beyond selling marijuana into vaporizer products.

“We’re taking the world from moonshine to cocktails,” Kovler told Bloomberg. “People come in complaining that the moonshine burns their throat, and we say, ‘Here, try this rum and Coke.’ We’re seeking to create an authentic relationship with consumers in the same way that alcohol companies do with hard liquor, beer, and wine.”

Kovler told Bloomberg that he and GTI expect to generate more than $70 million in revenue this year, after surpassing $20 million in 2017, as the company now has its products in more than 100 stores across the U.S.

All of GTI’s locations across the U.S. can be found here.

Kovler added that he expects raising capital will be cheaper in Canada than it is in the U.S., after the company raised $45 million in funding this year, largely from U.S.-based investors. The timing comes just shortly after the Canadian cannabis sector has taken a bit of a hit.

Extreme optimism led to investors bidding up cannabis-related stocks in 2017, especially towards the end, but that bubble burst a bit as investors fretted when Canada would legalize cannabis for adult use. Prime Minister Justin Trudeau and his team have hinted that recreational use could start in the fall, as opposed to July, as had been previously thought.

The sharp corrections seen in Canadian cannabis stocks are indicative of the entire cannabis sector in the first quarter. The Green Market Report Cannabis Company Index fell 21.9 percent in the first quarter, as regulatory concerns, especially in the U.S., weighed on investors’ minds.


William SumnerWilliam SumnerMarch 30, 2018
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As legal cannabis continues to weed its way into the mainstream, more and more cannabis companies are starting to be seen as not just pot purveyors but as regular everyday businesses. Some cannabis companies are even starting to be recognized for their excellence outside of the cannabis industry, like Green Thumb Industries (GTI).

On March 26, 2018, GTI announced that it has been named a finalist for the Crain’s Chicago Business Best Places to Work List 2018. Founded in 2014, GTI has steadily grown over the years to 230 employees nationwide, with plans to add 250 more employees by the end of 2018.

“At its core, GTI is really all about people,” said GTI Chief Executive Officer Pete Kadens. “Along with ensuring excellent patient care, GTI’s workplace culture and employee engagement are top priorities for the company. Our philosophy is pretty simple – we’re humans who care about other humans whether that’s our community, our patients or our colleagues and that’s what fuels the company’s growth and success.”

The Crain’s annual Best Places to Work List is determined by analyzing company benefits, workplace practices and the survey results from approximately 15,000 Chicago workers regarding relevant topics such as compensation, career advancement, workplace equality, transparency, and relationships between co-workers and management.

This is both the first time that GTI has been nominated and it is also the first year that the company has been eligible. GTI, in part, credits its status as a finalist to what it describes as a generous benefits plan as well corporate perks such as unlimited vacation time, half-day first Fridays each month, free snacks and frequent employee appreciation celebrations.

“Our perks are great, but I think most important is our culture of honesty, integrity and shared values,” commented GTI Vice President of People Eunice Kim. “Our team works incredibly hard and we are all passionate about being a part of a larger cause and social movement. The mission to ensure patient access to safe and effective medical marijuana lives in every single person who works at GTI and is deeply rooted in our culture.”



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