Debra Borchardt
Chicago-based cannabis company Green Thumb Industries (GTI) will begin trading on June 13 under the ticker symbol “GTII” on the Canadian Securities Exchange. GTI’s owner VCP23 LLC did a reverse take over (RTO) of Bayswater Uranium Corporation raising C$87 million or $67 million through a private placement.
The bookrunners were GMP Securities and Canaccord Genuity on behalf of a syndicate of agents (including Beacon Securities Limited, Echelon Wealth Partners Inc., and Eight Capital) to complete the brokered financing. Cassels Brock & Blackwell LLP served as counsel to GTI regarding the financing and the listing on the CSE. In connection with the transaction, Bayswater was de-listed from the Toronto Venture Exchange effective June 12, 2018.
“Listing on the CSE provides access to capital to fuel the company’s strategic growth,” said GTI Founder and Chairman Ben Kovler. “But it doesn’t change our focus on capital allocation and execution to optimize shareholder value. We will continue to move the business forward while providing the best possible customer experience.”
VCP reported revenue in its filing for the three months ending March 31, 2018, as $10.9 million with a gross profit of $4.8 million and a net loss of $1.5 million. VCP also reported that its total revenue for the year ending December 31, 2017, was $16.5 million with a net loss of $4 million.
GTI owns and operates seven manufacturing facilities, distributes a well-rounded suite of branded cannabis products, and operates a chain of retail locations in seven highly regulated, limited supply U.S. markets: Illinois, Pennsylvania, Ohio, Massachusetts, Maryland, Florida, and Nevada. The company announced yesterday that it was awarded five dispensary licenses in Ohio and plans to open locations in Cleveland, Toledo, Lorain and two in Lakewood.
“GTI is an experienced dispensary operator with 13 dispensaries currently open and on its way to a 50-store retail chain,” says GTI Ohio, LLC partner Bobby George. “I’m thrilled to be part of the team that will bring quality medical marijuana to Ohio patients, with safety and security among our top priorities. GTI is excited to soon be a part of these Ohio communities – and it’s especially gratifying for me to have a role in providing access to this medicine for my fellow Ohioans.”
GTI recently opened its 13th RISE dispensary and is on its way to a 50-store retail chain. 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. GTI’s revenue in 2017 exceeded $20 million and is on track for continued growth in 2018.
“The opportunity to touch the lives of more customers through expanding our brand distribution footprint and the RISE retail experience is extremely rewarding,” says GTI Chief Executive Officer Pete Kadens. “We have the right infrastructure and people in place — and we will work to maximize GTI’s potential for the shareholders who’ve entrusted us with their capital.”
A review of the company’s top executives share ownership and compensation seems reasonable. Founder and Chairman Ben Kovler owns 23.7% of the shares, CEO Pete Kadens owns 12% of the shares making a total compensation of $345k for 2018 and CFO Anthony Georgiadis owns 2.9% of the shares and will earn $300k for 2018.
