Illinois-based multistate operator Green Thumb Industries is expanding into Virginia with a definitive agreement to acquire medical marijuana company Dharma Pharmaceuticals.
The deal comes only weeks after an adult-use measure was signed into law in Virginia.
Financial terms of Green Thumb’s acquisition weren’t disclosed.
Dharma holds one of five MMJ licenses in Virginia.
But the Bristol-based company also is strategically positioned to take advantage of the state’s adult-use market, which is projected to eventually be much larger than the MMJ sector.
Recreational sales in Virginia are scheduled to begin Jan. 1, 2024, but advocates plan to push for an earlier start.
The 2021 Marijuana Business Factbook projects that adult-use sales in Virginia will reach $1.3 billion a year by the fourth year of operation.
By contrast, Virginia’s limited medical cannabis market, which launched in October 2020, is expected to reach only $20 million-$25 million in sales this year.
The Dharma deal includes a production facility and dispensary located in Abingdon. The licensee also is allowed to open up to five additional dispensaries.
Green Thumb’s acquisition, expected to close in the second half of 2021, is subject to regulatory approvals.
Upon completion of the acquisition, Green Thumb will have a presence in 13 marijuana markets.