Chicago, Illinois-based Green Thumb Industries (GTI) last week acquired Dharma Industries—one of Virginia’s four medical cannabis processing companies. Dharma is the only cannabis producer in Southwest Virginia, according to the Bristol Herald Courier.
GTI CEO and Founder Ben Kovler said that the acquisition in “a limited-license market with a population of nearly 8.5 million people … is a major win” for the company’s shareholders. The firm trades on the Canadian Securities Exchanges under the “GTII” symbol.
The terms of the deal were not disclosed.
“Expanding into the first state to pass adult-use cannabis in the Southeastern U.S. is an important milestone for Green Thumb and we are excited for the future.”—Kovler in a press release
The deal increases GTI’s national presence to 13 states and 59 retail locations. The acquisition includes a production facility and dispensary in Abingdon with the opportunity to open five additional dispensaries in the Commonwealth.
Under Virginia’s adult-use cannabis law, existing medical cannabis operators will be able to obtain multiple recreational licenses by paying a $1 million fee to the Virginia Cannabis Equity Loan Fund, and the Virginia Cannabis Equity Reinvestment Fund, and if they submit plans for diversity, equity, and inclusion, according to the Herald Courier. GTI received approval for the deal from the Virginia Board of Pharmacy. The planned takeover was first announced in May.
Jennifer Dooley, GTI chief strategy officer, told the Herald Courier that Dharma’s previously announced plans for a dispensary in Salem are continuing.
Portions of Virginia’s adult-use cannabis law took effect on July 1, but, under the Legislature-approved law, sales are not expected to commence until January 2024.
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