Green Thumb signs $80M deal to acquire Connecticut medical marijuana firm

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Green Thumb Industries (GTI), a vertically integrated, multistate cannabis company, signed a definitive agreement to acquire Connecticut’s Advanced Grow Labs in a deal valued at roughly $80 million.

Advanced Grow Labs, one of only four licensed medical marijuana cultivation and processing companies in the state, owns a 41,000-square-foot manufacturing facility in West Haven and a 46% stake in a not-yet-opened dispensary in Westport.

When the deal closes, Chicago-based GTI will have 12 manufacturing facilities and licenses for 85 retail shops in 11 states.

GTI went public in Canada in June via a reverse takeover and trades on the Canadian Securities Exchange under the ticker symbol GTII.

The company saw revenues increase 344% to $17.2 million in the third quarter.

Under the transaction, GTI will pay:

  • $15 million in cash and 7 million subordinate voting shares of GTI stock.
  • Up to an additional 1 million subordinate voting shares of GTI, subject to pricing conditions before closing.
  • Additional considerations based on performance targets.