Green Thumb Industires (CSE: GTII) has entered the Virginia cannabis market. The company this morning announced that it has entered into a definitive agreement to acquire Dharma Pharmaceuticals, the sole remaining private operator within the limited license state.
Holding just one of five licenses available in Virginia, Dharma was viewed as one of the last opportunities for current multi-state operators to obtain a position within the state. The company was the first operator in the state to provide medical products to patients, with the company currently owning an existing production facility and retail dispensary.
The company is also able to open up to five additional retail locations across the state under the current license held by Dharma.
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Financial details of the transaction were not provided. However, adult-use legislation that was approved by the state back in February was expected to demand a hefty premium for licenses in the state of 7.5 million, with price tags of upwards of $50 million known to be demanded for licenses in the state as per one consultant.
The transaction is expected to close in the second half of 2021.
The announcement follows the news Friday that the company is in the process of raising US$217 million via senior secured notes.
Green Thumb Industries last traded at $39.06 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
