Green Thumb Industries closes $290m acquisition of Nevada’s Integral Associates

Chicago-headquartered Green Thumb Industries (GTI) has closed on the acquisition of Nevada’s Integral Associates.

The transaction, previously announced on November 13, 2018, was valued at approximately US $290 million, which included $52 million in cash and the issuance of approximately 20.8 million Subordinate Voting Shares of GTI.

The purchase agreement also provides for the payment by GTI of additional consideration upon the achievement of certain performance targets and regulatory license awards as disclosed in GTI’s public filings.

The acquisition includes:

  • Integral Associates’ three high-traffic Essence retail stores located across the Las Vegas area including the only cannabis retail store on the Las Vegas Strip;
  • Eight additional retail licenses in Nevada: five in the Las Vegas area and three in Northern Nevada;
  • West Hollywood retail license, one of only five with a consumption lounge and delivery service;
  • 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; and
  • Cannabiotix NV, a 41,000 square foot cultivation and processing facility which has been a recognized High Times Cannabis Cup award winner.

“We are excited to close on this transaction—it is a major win for shareholders as we scale distribution of our branded products and retail footprint in the Las Vegas market, one of the most popular tourist destinations in the world. In addition, it allows GTI to enter California with a flagship retail location,” said Ben Kovler, GTI Founder and Chief Executive Officer.

“Integral Associates is an exceptional operator—it is a highly admired and respected business and adds award-winning products, significant retail market share, and healthy EBITDA to our business. 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.”

Kovler added, “We are also excited to welcome Armen Yemenidjian to our executive leadership team, where he will serve as president. Armen’s experience and vision in building and growing an outstanding company will be a tremendous asset to our organization.”

Armen Yemenidjian stated, “This transaction comes at an important and exciting time of growth for us. I’m honored to join GTI’s leadership team and be a part of such a well-respected employer that places a strong emphasis on people, brands and delivering superior service. With GTI’s expertise and impressive track record, we look forward to this new chapter and having the opportunity to serve more guests in new and existing markets.”

Integral Associates was founded by Alex Yemenidjian, Armen Yemenidjian and Brian Greenspun in 2014 and has quickly become one of Nevada’s leading operators.

Essence retail stores are renowned for superb service along with one of the widest selections 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’ production capabilities include two world-class cultivation and processing facilities in Las Vegas, Desert Grown Farms and Cannabiotix NV, supporting the expanded wholesale distribution of GTI’s branded products portfolio in one of the world’s most popular tourist destinations. Desert Grown Farms and Cannabiotix NV total 95,000 square feet of state-of-the-art cultivation and processing capacity.

The State of Nevada reported market revenue through the first three months of 2019 across all dispensaries was approximately $162 million, including a record-breaking $60 million in the month of March. Calendar year 2018 statewide sales were over $580 million, and overall 2018 tax revenue for the state was nearly $87 million, handily beating estimates.

Headquartered in Chicago, Illinois, GTI has 13 manufacturing facilities, licenses for 88 retail locations and operations across 12 U.S. markets.

Established in 2014, GTI employs approximately 1,100 people and serves thousands of patients and customers each year.Cannabis Business Worldwide

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