Expansion Continues for Green Thumb Industries Inc. (OTC US:GTBIF)

Green Thumb Industries Inc. (OTC US:GTBIF) shares have been sliding with the rest of the cannabis space over the past few months. At some point, this will be a deep value opportunity given the company’s top positioning as a multi-state operator, and one of the few in the space with a strong balance sheet.

To further the story, the company recently announced the opening of GreenStar Herbals Chelsea in Massachusetts in December. According to the release, the store will be rebranded to Rise in 2022. Profits from the first day of sales will be donated to La Colaborativa, an organization committed to empowering Latinx immigrants to enhance the social and economic health of the community and its people.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

As noted above, GTBIF just announced the opening of GreenStar Herbals Chelsea in Massachusetts in December.

“Since entering Massachusetts in 2018, we have expanded our retail footprint to six stores, the maximum amount permitted by the state,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We are excited to open a new store in Chelsea which will allow us to serve more consumers in the greater Boston area. We are also proud to donate our first day profits to La Colaborativa, who is doing important work supporting Greater Boston’s Latinx community by providing food distribution and housing, legal aid, education and job training.”

Dinanyili Paulino, Chief Operations Officer of La Colaborativa said: “La Colaborativa is excited to welcome Green Thumb to the Chelsea community and we are very appreciative of their donation. This donation will help us continue our mission of making a positive impact on Greater Boston’s Latinx community through citizenship support, educational programs and food distribution services.”

We’ve witnessed just shy of -10% during the past week in terms of shareholder gains in the name, a bounce that has taken root amid largely bearish action over the larger time frame. However, GTBIF is a stock with a past that has featured a litany of sudden rips to the upside. Moreover, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 1% above the average volume levels in play in this stock over the longer term. 

Now commanding a market cap of $3.5 billion, GTBIF has a significant war chest ($362.1M) of cash on the books, which stands against about $209.4M in total current liabilities. One should also note that debt has been growing over recent quarters. GTBIF is pulling in trailing 12-month revenues of $1B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 40.7%. You can bet we will update this one again as new information comes into view.