Green Thumb Industries
On February 5, Green Thumb Industries (GTBIF) announced that it entered into a definitive agreement to acquire For Success Holding Company. The acquisition will likely help Green Thumb Industries enter the California market. However, Green Thumb Industries didn’t disclose the financial aspects of the deal. The acquisition is expected to be completed in the first quarter.
For Success Holding Company creates Beboe branded cannabis products. The Beboe brand is available in more than 125 retail locations in California and Colorado.
Ben Kovler, Green Thumb Industries’ CEO, said, “We believe authentic brands distributed at scale is the key to winning in this industry and we’ve built the national infrastructure to produce and distribute high-quality products across the country. The meticulously crafted suite of Beboe products supports the premium segment within GTI’s brand portfolio and is firmly aligned with our long-term growth strategy. Beboe has an extremely talented team, a robust innovation pipeline, and an aligned vision for what cannabis can mean for enhancing everyday life, not only for today but importantly for tomorrow’s cannabis consumer. We are thrilled to have this visionary team of Scott Campbell and Clement Kwan join the GTI family.”
Following the acquisition, Green Thumb Industries rose 1.2% and closed at $12.39 for the week ending February 8. The gains helped the stock to narrow its 100-day moving average price. The stock traded 3.1% below its 100-day moving average price of $12.77. On a year-to-date basis, the stock has gained ~64%. Canopy Growth (CGC), Aurora Cannabis (ACB), Aphria (APHA), and Tilray (TLRY) have gained 66.13%, 45.1%, 50.6%, and 5.4%, respectively.
Green Thumb Industries outperformed the Horizons Marijuana Life Sciences Index ETF (HMLSF), which fell 4.1% for the week ending February 8.