The inheritor to a fortune earned from bourbon in the course of the post-Prohibition period is constructing a brand new firm within the hashish business.
Ben Kovler is the great-grandson of Harry Blum, who invested within the Jim Beam model after the end of Prohibition. After shopping for out his companions for about $1 million in 1941, Blum bought the corporate in 1967 for an undisclosed sum.
Kovler can also be the founder and chairman of Green Thumb Industries (GTI). Today, GTI introduced they are going to be buying a publically traded Canadian firm in what is called a reverse merger.
In a reverse merger, a personal firm purchases one already traded on a inventory change. This permits the personal firm to promote shares to new buyers to achieve new capital. The transfer additionally avoids the complicated and dear means of going public itself.
United States authorized restrictions forestall GTI from revealing the identify of the corporate they are going to be taking up. But High Times has discovered that the agency is Bayswater Uranium Corporation.
Kovler said in a press launch that his firm is profiting from newly authorized hashish markets.
“We believe this is Prohibition 2.0 and brands distributed at scale will win,” he stated. “Our business plan is simple: Enter, Open, Scale. The liquidity in the Canadian market will drive down our cost of capital and allow us to execute on our business plan to deliver shareholder returns.”
At this time, GTI doesn’t plan to start hashish operations in Canada. Instead, the acquisition provides them entry to a brand new supply of capital to broaden its operations within the U.S.
GTI is presently working cultivation facilities and 7 manufacturing amenities. It additionally has 45 retail places in six states. The firm’s manufacturers embrace the RISE chain of hashish dispensaries in Maryland, Massachusetts, Nevada, and Pennsylvania. The Chicago-based firm additionally plans to broaden into Florida quickly.
Merger Offers Opportunity for Growth
Pete Kadens is the CEO of Green Thumb Industries. He stated that the merger can be a chance for each the corporate and the markets it serves.
“I’m excited for all of us at GTI as we experience a huge milestone and transition from a private company to a publicly traded one,” Kadens stated. “In addition to giving back to the communities in which we operate, our priority remains bringing a disciplined and strategic approach to our expansion efforts as we move GTI to the next level. GTI is well positioned to thrive as the cannabis industry matures and we look forward to being among the publicly traded cannabis companies on the Canadian exchanges.”
Sanjay Tolia, one of many buyers in GTI, informed Bloomberg that the deal exhibits that the corporate plans to be a long-term participant within the hashish enterprise.
“A lot of people think this stuff is about liquidity and finding exits, and I firmly believe the bigger opportunity for us is to go to Canada and use that currency to increase our scale,” stated Tolia. “It’s hard to do that if you’re not public.”
GTI plans to use new funding gained from the deal to construct new amenities whereas buying extra licenses in authorized hashish markets.