Truly one of the most interesting plays in the cannabis space right now is Green Thumb Industries Inc (OTCMKTS:GTBIF). The volatility here is unreal, and the stock has such an interesting US-based narrative that it deserves a deeper look. One part of this story is the acquisition binge the company may have started.
As a case in point, Green Thumb just announced it has closed on a previously announced transaction to acquire Florida-based KSGNF, LLC. According to the release, “The acquisition makes GTI one of only 14 companies approved to operate a medical marijuana business in the state of Florida. GTI will be authorized to operate a cultivation and processing facility in Homestead and up to 30 dispensaries throughout the state.”
Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.
The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.
According to company materials, “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(TM) 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.”
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As noted above, GTBIF just announced announced it has closed on a previously announced transaction to acquire Florida-based KSGNF, LLC. In all, recent action has seen above -30% chopped out of shares during the trailing week. In addition, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 19% above the average volume levels in play in this stock over the longer term.
Traders should note this as important with the stock trading on a float that is relatively small at just 22.1M shares.
“The team continues to execute on our business plan to methodically build scale across the country and closing on the Florida acquisition is an important milestone,” said GTI Founder and Chief Executive Officer Ben Kovler. “We are committed to disciplined capital allocation to optimize shareholder value and believe that serving the 21 million people across Florida communities with expanded options is firmly aligned with that strategy.”
Currently trading at a market capitalization of $1.66B, GTBIF has about $112M in cash on the books, which stands against about $9.3M in total current liabilities. The company has pulled in about $14M in revenues on a TTM basis. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $GTBIF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $GTBIF, either long or short, and we have not been compensated for this article.