On Tuesday, Green Thumb Industries Inc. (GTI) finalized a deal to accumulate 100 % of Integral Associates, Nevada’s prime hashish firm. The transfer marks a serious enlargement for the Chicago and Vancouver-based GTI. Integral will convey onboard its operational capability, distribution and, crucially, its vital retail footprint in Nevada. The complete worth of the transaction is roughly $290 million. $52 million will go to Integrated Associates in money together with 20.eight million Subordinate Voting Shares of GTI.
Highlights of Green Thumb Industry’s Acquisition of Integral Associates
Beneath its unassuming identify, Integral Associates emerged because the chief of Nevada’s rapidly-developing retail hashish business. The firm owns and operates two cultivation and processing amenities: Desert Grown Farms and Cannabiotix NV, overlaying 95,000 sq. ft. Desert Grown Farms has gained recognition for its genetics library that homes greater than 100 strains of hashish. Cannabiotix NV is well-known to High Times readers, having earned a number of High Times Cannabis Cup awards, together with a 2018 Flower of the Year award for its Kush Mountain pressure.
The acquisition deal additionally consists of the Essence retail model. Under the model Essence, Integral Associates owns and operates three nationally-recognized dispensaries, together with the primary and solely dispensary on the Las Vegas Strip. The Essence Las Vegas Strip location earned Business Insider’s primary dispensary in Nevada and its top-25 dispensary within the United States award, along with a number of others, together with a High Times top-10 dispensary in Nevada award.
Strategic Importance of GTI’s Nevada Acquisition
Nevada legalized adult-use hashish in 2016. But in contrast to different regulated retail states, Nevada is a restricted license grownup use market. This signifies that there are solely a sure variety of retail licenses obtainable; therefore, simply the only dispensary on the Las Vegas Strip. Acquiring Integral Associates means GTI additionally acquires a handful of these restricted licenses.
In a press launch saying the deal, GTI Founder and CEO Ben Kovler described the acquisition as “immediately accretive and an important milestone” as the corporate positions itself to scale in Nevada. Armen Yemenidjian, who based Integral in 2014, will be a part of GTI’s management workforce as president. Yemenidjian described Tuesday’s deal as “a big win for Nevada communities and the customers we will continue to serve.”
GTI expects the acquisition to formally shut within the first half of 2019. Despite the settlement and unanimous approval by the Board of Directors, the deal should safe customary regulatory approvals.