Green Thumb Industries closes acquisition of Advanced Grow Lab
In a press release on February 12, Green Thumb Industries (GTBIF) announced that it had closed the acquisition of Advanced Grow Labs (AGL), a Connecticut-based company. The deal was announced on January 7, 2019. The deal is valued at $80 million. AGL is one of the four companies that have the license to grow and process cannabis.
The acquisition should also help GTBIF make an entry into Connecticut. Further, GTBIF will have 12 manufacturing facilities and licenses for 85 retail stores across 11 states.
Ben Kovler, the founder and CEO of GTBIF, said, “We continue to execute on GTI’s expansion plans and are thrilled AGL is officially part of the GTI team. AGL is a highly successful company in a limited license state with an excellent leadership team that will continue to be at the helm of this business. We are now solidly positioned in the tri-state area with this entry into Connecticut.”
The positive news boosted Green Thumb Industries stock by 9.0%. The stock closed at $12.39 for the week ending February 15. The stock is now trading 9.0% above its 100-day moving average price of $12.39. On a year-to-date basis, the stock has gained 78.8%. Canopy Growth (CGC), Aurora Cannabis (ACB), and Aphria (APHA) have gained 73.7%, 34.8%, and 53.4%, respectively.
Green Thumb Industries outperformed the Horizons Marijuana Life Sciences Index ETF (HMLSF), which gained 3.3% in the week ending February 15.