Innovative Industrial Properties Inc (NYSE:IIPR) has taken over Green Thumb Industries Inc (OTCMKTS:GTBIF) in a deal valued at $20.3 million. It is a sale and leaseback transaction. Green Thumb will incorporate changes to the Danville, Pennsylvania based cannabis processing and cultivation facility to increase production capacity significantly. It will get a refund of up to $19.3 million from Innovative Industrial for certain enhancements to the property from Innovative Industrial’s total investments in the property will climb to $39.6 million after all the reimbursements to Green Thumb.
Acquires and leaseback properties
Innovative Industrial enters into a pact with cannabis operators, who are experienced in medical cannabis operation, take over their properties, and lease that property back to them and provides capital for their operations.
The Cannabis consumer packaged goods firm – Green Thumb owns Rise and Essence Retail Stores. It owns thirteen production facilities and holds licenses for the ninety-six retail locations/ operations in twelve markets across the US.
Registered patient base is 180,000
Pennsylvania based medical-use cannabis dispensaries recorded their first sale last year. The registered patient count for the state-sponsored medical cannabis program at these dispensaries as of August 2019 is 180,000. It offers support for patients suffering from Tourette syndrome and anxiety disorders.
In September 2019, Green Thumb inaugurated another Rise store in Pennsylvania. It is the seventh store in operation supporting patients with medical use cannabis. The company also operates stores in Steelton, Erie, Carlisle, Mechanicsburg, York, and Latrobe.
Supports the lives of patients
Green Thumb is pride to operate as a leading cannabis operator in the nation. CEO and President of Innovative Industrial, Paul Smithers, is pleased to associate with Green Thumb to support their cannabis operations expansion for the patient care in Pennsylvania. Paul said Green Thumb has the dedication and a host of cannabis products to ensure the wellbeing of the patients and will have a positive impact on the lives of several patients.
Ben Kovler, CEO and founder of Green Thumb, said Innovative Industrial offers a real estate capital solution to support the expansion at its Danville based cultivation and processing plant. The deal allows the company to mobilize funds and address the high growth of medical cannabis and expand the projects.
Innovative Industrial has reported revenues of $11.2 million in Q3 2019. It is an increase of 112% when compared to the same quarter of last year. The company appointed Tracie Hager as the VP (Asset Management).