GTI, the cannabis consumer packaged goods company, confirmed it had signed a definitive agreement to buy Dharma Pharmaceuticals, though the price has not been disclosed.
Dharma Pharmaceuticals owns one of five licenses under the Virginia medical cannabis market, which enables it to cultivate, process and retail directly to consumers. It was the first operator to offer medical cannabis products to patients in Virginia in 2020.
Under the purchase agreement, Green Thumb will also acquire a production facility and retail dispensary in Abingdon.
Furthermore, Chicago-headquartered GTI will still be able to open up to five additional retail stores in Virginia.
Why It Matters
The purchase is expected to be finalized during the second half of the year, upon which, Green Thumb Industries will operate in 13 states – California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania and Virginia.
This past April, Virginia became the first state in the Southeastern part of the country to legalize recreational cannabis, though adult-use sales aren’t expected until January 2024. With a population of nearly 8.5 million, Virginia is projected to reach roughly $1.5 billion in legal cannabis sales.
“This industry will create consequential economic opportunities and social change in a part of the country that remains void of legal access to cannabis today,” Green Thumb Founder and Chief Executive Officer Ben Kovler stated. “We look forward to serving Virginia’s current medical patients and future adult-use consumers while supporting the tremendous positive impact that the legal cannabis industry can have on local communities.”
Kevin Gibbs, Partner and Head of Operations of Merida Capital Holdings, the current majority-equity owner of Dharma, agreed. “Over the past two years our team has worked hard to introduce the first medical cannabis products to Virginia’s patients. Together with Green Thumb, Dharma’s offering will expand to prepare for the introduction of adult-use sales in the first market in the Southeastern United States.”
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