Green Thumb Industries buys Integral Associates in US $290m acquisition

Chicago-HQ’d Green Thumb Industries (GTI) has signed a definitive agreement to acquire 100% of Integral Associates.

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

The transaction is valued at approximately US $290 million, with US $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 regulatory license awards. The transaction is expected to close in the first half of 2019, subject to customary regulatory approvals.

“We are thrilled to expand GTI’s production, distribution and retail footprint in one of the most popular tourist destinations in the world,” commented Ben Kovler, GTI Founder and Chief Executive Officer.

“Integral Associates are exceptional operators—they have a highly admired and respected business comprised of two world-class cultivation and processing facilities, multiple award-winning products, strong wholesale distribution, three impressive retail dispensary locations with significant retail market share and healthy EBITDA. This acquisition is immediately accretive and an important milestone as we position GTI to scale in one of the only limited license adult use markets.”

“This acquisition is immediately accretive and an important milestone as we position GTI to scale in one of the only limited license adult use markets.”

Ben Kovler, GTI

Integral Associates was founded by Alex Yemenidjian, Armen Yemenidjian and Brian Greenspun in 2014. Its retail business operates under the Essence brand, and is especially prominent in Las Vegas, Nevada.

Integral Associates’ production capability, including Desert Grown Farms and Cannabiotix NV, totals 95,000 square feet of pharmaceutical-grade cultivation and processing capacity.

Kovler added, “We are excited to welcome Armen Yemenidjian to our senior leadership team, where he will serve as president. Armen’s wealth of experience in building and growing an outstanding company will be a tremendous asset to our organization. We are also pleased 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 partnership is ideally positioned to bring our business to the next level,” 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 involvement. Today is a big win for Nevada communities and the customers we will continue to serve.”

Armen Yemenidjian will join GTI’s senior leadership team, while Alex Yemenidjian will join its Board of Directors and serve on the firm’s audit committee.

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 a trustee of Baron Investment Funds Trust and Baron Select Funds, both mutual funds, is Lead 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.

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

Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, manufactures and sells branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE.

Headquartered in Chicago, Illinois, GTI has eight manufacturing facilities and licenses for 60 retail locations across eight highly regulated U.S. markets.

Established in 2014, GTI employs over 450 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.Cannabis Business Worldwide

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