If you’re looking for cannabis names starting to catch some major upside momentum mojo so far in 2019, then you could probably do a lot worse than Green Thumb Industries Inc (OTCMKTS:GTBIF). This is a stock that bounced decisively off its 200-day MA back in late December after being a clear momentum leader in the space over the prior year. That, in our eyes, establishes this stock as a genuine leadership play in the space over recent action. To add more color, the company just announced that it has been awarded an Ohio processing license, one of up to 40 the Ohio Department of Commerce is authorized to award. The GTI processing facility will be located in Toledo.
According to the release, “in June 2018, the Ohio State Board of Pharmacy also awarded the company licenses to open five dispensaries, the maximum number permitted under current regulations. There were 375 applications for the 56 awarded licenses. GTI is slated to open the five RISE™ stores in the following locations: Cleveland, Toledo, Lorain and two in Lakewood. RISE Toledo will be the first GTI-owned store in Ohio — and the 15th nationwide — with an expected opening in the coming weeks.”
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 that it has been awarded an Ohio processing license, one of up to 40 the Ohio Department of Commerce is authorized to award. In all, the chart shows 35% during the past week in terms of shareholder gains in the name. What’s more, the stock has registered increased average transaction volume recently, with the past month seeing 57% above its longer-run average levels.
This should not be overlooked due to the very limited float size in the stock (under 330K shares). As savvy traders are well aware, ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.
“We look forward to serving the people of Ohio who deserve the very best products available as they seek relief with medical marijuana – and we are also honored to be able to create jobs in the state,” said GTI Founder and Chief Executive Officer Ben Kovler. “Expansion in Ohio supports our strategic goal of increasing our footprint and distributing brands at scale. This license win allows GTI to produce and distribute its quality brands in Ohio.”
Currently trading at a market capitalization of $1.84B, 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. We will update the story again soon as further details emerge. 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.