Green Thumb Industries Inc. (GTI) Expands with the Acquisition of Integral Associates, Nevada’s Best Cannabis Operator

Green Thumb Industries Inc. (GTI) Expands with the Acquisition of Integral Associates, Nevada’s Top Cannabis Operator

Green Thumb Industries (GTI) (CSE: GTII) (OTCQX: GTBIF), announced today that it has signed a definitive agreement to acquire 100% of Integral Associates.

  • Integral Associates’ retail manufacturer Essence, which currently operates three high-traffic locations across the Las Vegas Valley
  • Desert Grown Farms, a 54,000 square foot state-of-the-art cultivation and processing facility with an award-winning genetics library of 100+ strains
  • Cannabiotix NV, a 41,000 square foot cultivation and processing centre which has been a recognized High Times Cannabis Cup award winner several times over

“We’re thrilled to enlarge GTI’rdquo, & s production, distribution and retail footprint in one of the most popular tourist destinations in the world; commented Chief Executive Officer, GTI Founder and Ben Kovler. “Integral Associates are exceptional operators–they have a highly admired and respected business comprised of two world-class farming and processing facilities, multiple award-winning goods, strong wholesale distribution, three notable retail dispensary locations with significant retail market share and healthy EBITDA.  This acquisition is accretive and an important milestone as we position GTI to climb in one of the only limited license adult use markets. ”

& ldquo; We’re eager to welcome Armen Yemenidjian to our senior leadership team, where he’ll serve as president was added, by kovler.  Armen&rsquo wealth of experience in developing and building an outstanding company will be a tremendous asset to our organization. We’re also happy to announce that Alex Yemenidjian will be joining our Board of Directors, and we look forward to leveraging his vast and varied experience and success. ”

“This venture is positioned to bring our company said Armen Yemenidjian.   “I am extremely excited to join the GTI team and be a part of an industry leader that places a strong emphasis on brands, is a respected and award-winning employer, and is committed to community participation.  Now is the clients we will continue to serve and a big win for Nevada communities. ”

Alex Yemenidjian serve on the audit committee and will join the GTI Board of Directors in addition to Armen Yemenidjian linking GTI & rsquo; s senior leadership team. He served as Chairman of the Board and Chief Executive Officer of Tropicana Las Vegas Hotel & Casino, Inc. from July 2009 to September 2015 and also served as Chairman of the Board and Chief Executive Officer of Metro-Goldwyn-Mayer Inc. from April 1999 to April 2005 and was a director from November 1997 to April 2005. He is Baron Select Funds, both mutual funds and a trustee of Baron Investment Funds Trust, is Director and chairman of the compensation committee of Guess? , Inc., a worldwide retailer of contemporary apparel, and until March 2018 was a director and chairman of the audit committee of Regal Entertainment Group, a motion picture exhibition company.

Integral Associates was founded by Armen Yemenidjian Alex Yemenidjian and Brian Greenspun in 2014 and has become one of Nevada & rsquo; s dominant operators.  Their business operates under the Essence brand and is renowned for superb support along with the widest choice of quality cannabis products in Las Vegas.  The Essence Las Vegas Strip location was named Business Insider’s number one dispensary in Nevada and top-25 dispensary in the United States; a 17-time Leafly List Winner; top-10 dispensary in Nevada by High Times Magazine and the Las Vegas Review-Journal’s “Best of Las Vegas. ”

Integral Associates’ manufacturing capacity, such as Cannabiotix NV and Desert Grown Farms, totals 95,000 square feet of state-of-the-art grade cultivation and processing capacity. 

Nevada Market

GTI currently operates two adult use cannabis stores — Rise Spanish Springs and Boost Carson City — along with a Carson City-based cultivation and processing centre and entered Nevada in 2016.

Nevada dispensaries sold nearly $425 million worth of recreational marijuana in the state’s first full year of sales — about 60 percent higher than the state’s projections of $265 million — that significantly outpaced all other states that have legalized the sale of recreational marijuana. According to the state, marijuana tax revenue for the first full year of adult-use earnings totaled $69.8 million — about $20 million more than officials had projected — with the last four months of this fiscal year particularly strong.

The transaction is valued at approximately $290 million, with $52 million to be paid in cash and approximately 20.8 million Subordinate Voting Shares of GTI. The purchase agreement also includes additional consideration upon performance targets and license awards. The transaction has been unanimously approved by the Board of Directors and expected to close in the first half of 2019, subject to customary regulatory approvals.

About Green Thumb Industries:

Green Thumb Industries (GTI), a nationwide cannabis cultivator, chip and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationally while giving back to the communities in which they serve. As a company, GTI edibles and sells a package of cannabis products such as flower, concentrates, manufactures, and topicals. The company also owns and operates a rapidly growing chain of retail cannabis stores called commerce & RISE;. Headquartered in Chicago, Illinois, GTI has eight manufacturing facilities and permits for 60 retail locations across eight highly controlled U.S. markets. Launched in 2014, GTI serves thousands of patients and clients each year and employs over 450 people. GTI has been named a Best Workplace 2018 rsquo & by Crain ;s Chicago Business.  More information can be found in GTIgrows.com.

Around Essence Vegas Cannabis Dispensary:

Essence Vegas Cannabis Dispensary, the first and only cannabis dispensary on the famed Las Vegas Strip, has received numerous accolades, including being named Business Insider’s number one dispensary in Nevada and top-25 dispensary in the United States; a 17-time Leafly List Winner; top-10 dispensary in Nevada by High Times Magazine and the Las Vegas Review-Journal’s “Best of Las Vegas. ” Essence Vegas Cannabis Dispensary offers the widest choice of quality cannabis products in Las Vegas, including over 50 strains (blossom and pre-rolls), vape pens, concentrates, many different topicals and a huge variety of edibles, such as capsules, cookies, brownies, honey, chocolate and more. With three locations across Henderson and Las Vegas, Essence Vegas Cannabis Dispensary services are entirely safe, 100% legal and confidential to protect privacy. All services are performed by advisers.  All professional staff members are also available to discuss best practices with patients and clients. To find out more on Essence Vegas Cannabis Dispensary, please see https://essencevegas.com.

About Desert Grown Farms:

Desert Grown Farms is processing centre and a foot, state-of-the-art grade cultivation. Desert Grown Farms is located less than two blocks from the Las Vegas Strip and generates 7,500 pounds of blossom and 1,500 pounds of trim per year.  The facility has an genetics library of 100 breeds with a number of 25 unique breeds in constant rotation. The farming activities are controlled by a sophisticated system that purifies the water, mixes it with nutrients, dispenses water and nourishment to the plants, and controls temperature, humidity and air flow. All products produced in the facility are analyzed by an independent lab and available in dispensaries throughout Nevada. To find out more on Desert Grown Farms, please see https://desertgrownfarms.com/.

Around Cannabiotix NV:

Cannabiotix NV is a foot, state-of-the-art, cultivation and manufacturing facility located in the heart of Las Vegas, Nevada. Cannabiotix NV has most the facility exclusively breeding them and an genetics library with 55 breeds. Over 20 of the breeds have won rsquo, High Times &; Cannabis Cups. Kush Mountain was named High Times’ Flower of the Year for 2018. The facility also extracts the extremely sought-after and unique strains into a lineup of concentrates.  All products produced in the facility are analyzed by an independent lab and can be found in dispensaries throughout Nevada.

This press release contains certain “forward-looking info ” within the meaning of applicable Canadian securities laws. Such forward-looking information and forward-looking statements aren’t representative of historical facts or information or current condition, but rather represent only GTI’s beliefs concerning future events, plans or goals, many of which, by their nature, are inherently uncertain and outside of GTI’s control. Generally, such forward-looking information or forward-looking statements can be identified by using forward-looking language such as “plans”, “anticipates ” or “doesn’t expect”, “is expected”, “budget”, “scheduled”, “quotes ”, “predictions ”, “intends”, “expects ” & “doesn’t expect ”, or “considers ”, or variations of such words and phrases or may contain statements that certain actions, events or results “could ”, “could”, “could ”, “might” or “will be taken”, “will continue”, “will happen ” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but aren’t limited to, information concerning the proposed acquisition, expectations concerning whether the proposed acquisition will be consummated, such as whether conditions to the consummation of the proposed acquisition will be fulfilled and whether the proposed acquisition will be completed on the present terms, the timing of completing the proposed acquisition, expectations for the effects of the proposed acquisition or the ability of the Company to successfully achieve business objectives, expectations concerning the Nevada and California cannabis market and expectations for other economic, business, and/or competitive factors.

By identifying such statements and information this way, GTI is alerting the reader that such statements and information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GTI to be materially different from those expressed or implied by such statements and information. In addition, in connection with the forward-looking information and forward-looking statements included in this press release, certain assumptions have been made by GTI. Among the important factors that could cause actual results to differ materially from those projected in the forward-looking data and statements are the following: the ability to consummate the proposed acquisition; the ability for Essence to consummate its proposed acquisition of Cannabiotix NV; the ability to acquire requisite regulatory approvals and third party consents and the satisfaction of other conditions to the consummation of the proposed acquisition on the proposed terms and schedule; the possible impact of the announcement or consummation of the proposed acquisition on associations, such as with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, such as changes in the financial markets; changes in applicable legislation; compliance with extensive government regulation; and the diversion of management time on the proposed acquisition.

Although GTI believes that the assumptions and variables used in preparing, and the expectations contained in, the forward-looking statements and information are reasonable, undue reliance should not be placed on such statements and information, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. The forward-looking information and forward-looking statements included in this press release are made as of the date of this press release, and GTI doesn’t undertake to update any forward-looking information and/or forward-looking statements that are included or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to persons or GTI is qualified in its entirety by this notice.

Contacts:

Linda Marsicano
VP, Corporate Communications
lmarsicano@gtigrows.com
773-354-2004

Photos accompanying this announcement can be found at http://www.globenewswire.com/NewsRoom/AttachmentNg/91c706ac-b339-4a0b-bb05-45eb8a2f82f7

http://www.globenewswire.com/NewsRoom/AttachmentNg/c58915b5-de0b-425f-b372-2e1f2968dcbe

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Published at Tue, 13 Nov 2018 13:03:12 +0000

Posted in: News

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