Green Thumb Industries (GTI) Closes on Transaction With Innovative Industrial Properties to Sell and Lease Back Its Oglesby,...
March 09 2020 - 7:00AM
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.
Media
Contact: |
Investor Contact: |
Linda Marsicano |
Jennifer Dooley |
VP, Corporate Communications |
Chief Strategy Officer |
lmarsicano@gtigrows.com |
InvestorRelations@gtigrows.com |
773-354-2004 |
310-622-8257 |
Source: Green Thumb Industries
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