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

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.

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2 comments on “Green Thumb signs $80M deal to acquire Connecticut medical marijuana firm
  1. George Odell on

    Connecticut has the unenviable distinction of having the highest cannabis costs of any other state with no end in site. With only the four growers and no access to outside sources we are forced to pay the piper whatever she wants.

    Hopefully, our new governor will see things differently and work to open up the state to more external suppliers or at least more growers.

    There is no reason one millileter of vape concentrate has to cost us over $100.00.

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