Medical cannabis firm Green Thumb raising $60 million in Canada to grow US footprint

Illinois-based Green Thumb Industries is planning to expand in New York and Ohio after it closes a $60 million stock-purchase deal through its Canadian-listed shares.

Under the bought-deal transaction, a syndicate of underwriters will purchase 7.3 million Green Thumb shares for 11 Canadian dollars per share for gross proceeds of CA$80.3 million ($60 million), according to a company news release.

Underwriters have an option to buy another 1.095 million shares up to 30 days after the closing of the offering on Aug. 2. That could bring in an additional CA$12 million in gross proceeds.

Green Thumb, a multistate medical marijuana grower and dispensary operator, is traded on the Canadian Securities Exchange under the symbol GTII.

The company said it intends to use the capital to acquire one of 10 licenses in the regulated New York medical cannabis market, as well as for the build-out of five dispensaries in Ohio.

American cannabis companies in need of significant capital to fund aggressive growth plans are increasingly turning to capital markets in Toronto to raise funds.

Green Thumb is one of 26 U.S. cannabis companies that list on the CSE.

The Chicago company went public last month through a reverse takeover.

Matt Lamers can be reached at [email protected]

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