CHICAGO and VANCOUVER, British Columbia, Feb. 03, 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 Toledo, Ohio 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.
The purchase price for the property was $2.9 million, excluding transaction costs. GTI is also expected to make certain improvements to the property that will significantly enhance production capacity, for which IIP has agreed to provide reimbursement of up to $4.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $7.2 million. This marks IIP’s second transaction with GTI, following a sale-leaseback for GTI’s cannabis cultivation and processing facility in Danville, Pennsylvania completed in November 2019.
“IIP provides a flexible real estate capital solution that effectively addresses our expansion needs at the processing facility in Toledo,” said GTI Founder and CEO Ben Kovler. “We plan to use the proceeds for strategic initiatives and capacity expansion projects.”
In addition to the manufacturing facility in Toledo, GTI owns and operates four Rise™ stores in Ohio in Toledo, Cleveland, Lorain and Lakewood, with another store in Lakewood expected to open during the first quarter of 2020. Medical cannabis sales began in Ohio in 2019, and as of the end of December, nearly 80,000 patients and over 8,000 caregivers had been registered for the state’s medical cannabis program, generating approximately $60 million during the first year of sales, with 50 percent of those revenues coming in the last quarter of 2019.
“We are proud to team again with Green Thumb as its real estate capital partner for GTI’s licensed medical cannabis processing facility in Ohio, having teamed with GTI on its Pennsylvania cultivation and processing facility this past November,” said Paul Smithers, President and Chief Executive Officer of IIP. “GTI continues to distinguish itself with its cannabis product offerings and dedication to patient experience and right to well-being, providing safe, high quality cannabis products in a compassionate environment. We also commend them on the strength of their commitment to the communities in which they operate, including their recent announcement that over 200 social equity applicants have participated in GTI’s Social Equity Licensing Education Assistance Program (LEAP), providing pro bono mentoring and programming for Illinois craft grower, infuser and transporter licenses.”
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 1,400 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 applicable securities regulatory authorities on SEDAR at www.sedar.com, including the risk factors set out in GTI’s annual information form dated July 10, 2018.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Source: Green Thumb Industries
Source: Green Thumb Industries