Green Thumb Industries (GTI) Closes on Transaction With Innovative Industrial Properties to Sell and Lease Back Its Toledo, ...
February 03 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 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.
Media Contact:Linda MarsicanoVP, Corporate
Communicationslmarsicano@gtigrows.com773-354-2004 |
Investor Contact:Jennifer DooleyChief Strategy
OfficerInvestorRelations@gtigrows.com310-622-8257 |
Source: Green Thumb Industries
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