Nevada, USA, is one of the biggest recreational cannabis markets in the world. The allure of Las Vegas, with its 40 million annual visitors, means the business is too hot to pass up. If you are a cannabis retailer, get yourself a spot in Nevada. And that's exactly what Green Thumb Industries (GTI) (CSE:GTII) has done with its most recent acquisition.
Green Thumb Industries Acquires Integral Associates
Green Thumb acquired Las Vegas-based Integral Associates last week. The deal is the largest of its kind in Nevada's cannabis industry to date.
Set to close in early 2019, Green Thumb paid out $290 million to Integral Associates for its highly influential retail brand, Essence.
Essence and Green Thumb Industries
Ranked one of Nevada's best dispensaries, Essence operates in three locations across the Las Vegas valley. It also gets the green light from established industry influencers Leafly and High Times.
The acquisition will mean that Green Thumb Industries will now own eight facilities and 60 retail locations across eight states.
On the news Ben Kovler, GTI Founder and Chief Executive Officer, said the following:
“We are thrilled to expand GTI’s production, distribution and retail footprint in one of the most popular tourist destinations in the world. Integral Associates are exceptional operators—they have a highly admired and respected business comprised of two world-class cultivation and processing facilities, multiple award-winning products, strong wholesale distribution, three impressive retail dispensary locations with significant retail market share and healthy EBITDA.”
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Further Acquisitions
To cement its presence in Nevada, GTI also acquired two cultivation facilities, which, combined, offer 100,000 square feet of cultivation space. They are Desert Grown Farms and Cannabiotix NV. Both are award-winning facilities with over 100 unique cannabis strains.
Last week, GTII stock was soaring on the news with shares growing over 20% on the week and closing on a high of $16.85 on Friday. Today, however, stocks have lost some of those gains; GTII is in the red down 6.3% on the day and selling for $15.79.
Featured Image: Depositphotos/© rbspace
