Multi-state operator (MSO) Green Thumb Industries (OTC:GTBIF) is widening its network in a key marijuana state. The Chicago-based cannabis company announced Tuesday that it has acquired privately held Liberty Compassion, which operates medical marijuana growth facilities and dispensaries in Massachusetts. It did not specify a price.
Liberty Compassion has two retail outlets -- under the brand name Affinity -- that dispense medical product. One is located in Boston, and the other is not far from the New York border in the city of West Springfield. The deal triples Green Thumbs footprint in the state to three dispensaries in total.
The existing store, operating under the companys Rise brand, is located in the college town of Amherst and sells both recreational and medical cannabis product.
Image source: Getty Images.
Taking over Liberty Compassions assets also gives Green Thumb production and cultivation capacity, which will help supply the local market. All told, the company now owns two such properties.
The acquisition of Liberty scales our capacity to serve massive consumer demand in one of the countrys most densely populated regions, said Green Thumb founder and CEO Ben Kovler.
The company quoted Massachusetts Cannabis Control Commission figures showing that over $1.5 billion worth of cannabis goods have been sold in the state since its recreational marijuana market opened in 2018. Thats a bit of misdirection, though, as the Liberty Compassion assets are all about medical pot.
That said, the medical segment -- which typically commands higher prices -- is robust in the New England state. According to Green Thumb, more than 100,000 qualified medical cannabis users reside there, and patient registrations ballooned by 245% last year.
Green Thumb stock outpaced the broader market on Tuesday. It closed the day 1.1% higher, against the marginal decline of the S&P 500 index.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Green Thumb Industries. The Motley Fool has a disclosure policy.>
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