Benzinga | Dec 30, 2021 09:42AM EST

GTI Debuts In Minnesota Via LeafLine Industries Acquisition

Cannabis consumer packaged goods company Green Thumb Industries Inc. (CSE:GTII) (OTCQX:GTBIF) said Thursday that it has wrapped up the acquisition of LeafLine Industries.

What Happened

The Chicago and Vancouver-based owner of RYTHM, Good Green and Incredibles branded cannabis products has taken ownership of only two licensed cultivators in the Minnesota medical cannabis market.

However, the terms of the deal were not disclosed.

Why It Matters

The acquisition includes a cultivation facility and five open and operating retail locations in Eagan, Hibbing, St. Cloud, St. Paul and Willmar. The deal significantly expands production capacity and scales distribution capabilities while broadening Minnesota patients' access to medical cannabis products.

In addition, GTI will maintain the opportunity to open up to three additional retail locations in the state.

The transaction also positions the company to serve over 50% of the population nationwide, via 73 open retail locations in California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.

What's Next?

Ben Kovler, the company's CEO, said GTI is "ready to begin providing patients access to high-quality flower and edible products, both of which have been recently approved."

Moreover, starting in 2022, GTI is bringing on more than 100 new team members as it enters a new state operating five recent retail locations, Kovler continued.

"We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients," Kovler added. "We look forward to caring for LeafLine's existing patients while ensuring a seamless transition.

More recent news from GTI:

As Green Thumb's Shares Go Up Post Earnings, Analyst Says Stock Will Benefit From Cannabis Legalization

Cannabis Earnings: Green Thumb Industries Reports Third Quarter 2021 Results, 48% YoY Revenue Increase

Green Thumb Partners With Mental Health Co. To Address Veterans' Issues, Stem Suicides

Green Thumb Industries Reopens Newly Expanded Rise Mundelein Cannabis Dispensary

Price Action:

GTI's shares traded 6.84% higher at $21.25 per share after the market close on Wednesday.

Photo: Courtesy of Esteban Lopez on Unsplash