Green Thumb Industries (GTI) Closes on Transaction With Innovative Industrial Properties to Sell and Lease Back Its Oglesby, Illinois Cultivation and Processing Facility
CHICAGO and VANCOUVER, British Columbia, March 09, 2020 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ and Essence retail stores, today announced it has closed on a transaction to sell its Oglesby, Illinois cultivation and processing facility to Innovative Industrial Properties (IIP) (NYSE: IIPR). GTI will lease back the facility via a long-term agreement and continue to operate and manage it.
IIP’s total investment in the property will be $50 million, assuming full reimbursement for significant facility and capacity enhancements of up to $41 million as well as the $9 million purchase price for the property, excluding transaction costs. This marks GTI’s third transaction with IIP, following sale-leasebacks for GTI’s cannabis cultivation and processing facility in Danville, Pennsylvania completed in November 2019 and its Toledo, Ohio processing facility in February 2020.
The highest ROIC in global cannabis today is in wholesale capacity expansion in our home state of Illinois. IIP is a proven long-term real estate capital partner and provides us with another flexible real estate capital solution that allows us to put our capital to work in the best way possible.
Ben Kovler, GTI Founder and CEO
With the introduction of Illinois’ adult-use cannabis program this year, we continue to ramp up production to meet the demand from cannabis consumers and patients.
In addition to the manufacturing facility in Oglesby, GTI owns a cultivation and processing facility in Rock Island and seven stores throughout Illinois with licenses to open three additional retail locations. Adult-use cannabis sales began in Illinois on January 1st, and have generated nearly $75 million in revenue in the first two months and over $10 million in tax revenue in the month of January. Medical sales in January were approximately $25 million. Experts estimate the Illinois market potential is $2.5 billion or more after maturation.
We are thrilled to expand our relationship with Green Thumb, one of the country’s leading regulated cannabis operators. This investment enables GTI to significantly expand their consumer products manufacturing capacity and reflects our belief in their continued success in serving the growing demand.
Paul Smithers, President and Chief Executive Officer of IIP
About Green Thumb Industries:
Green Thumb Industries (GTI), a national cannabis consumer packaged goods company and retailer, is dedicated to providing dignified access to cannabis while giving back to the communities in which they serve. GTI manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection. The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, GTI has 13 manufacturing facilities, licenses for 96 retail locations and operations across 12 U.S. markets. Established in 2014, GTI employs approximately 1,700 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business and MG Retailer magazine in 2018 and 2019. More information is available at GTIgrows.com.
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