35,000 Share Divorce Deal & Legal Hurdles: Is Green Thumb Cannabis' Stock In Question?

Legal Fees Denied in Edible Arrangements Name Dispute

Green Thumb Industries GTBIF faces financial turbulence as it battles for the name "Incredibles." Edible Arrangements, known for its fruit baskets, expanded into edible CBD products under "Incredible Edibles," reported Debra Borchardt for Green Market Report (GMR).

However, these products struggled, accounting for just $23,587.89 of the nearly $1.5 million in U.S. sales from 2019-2021.

GTI, using "Incredibles" since 2010, found itself in a trademark dispute.

Despite claims being dismissed, GTI sought Edible to cover legal fees, but U.S. District Judge Sara L. Ellis disagreed and the undisclosed bill is awaiting Edible's response by October 20.

For a deeper dive and valuable insights, subscribe and watch Debra Borchardt's panel discussions at the last Benzinga Cannabis Capital Conference held in Chicago on September 27 and 28. The panels delved into key business topics, including navigating capital challenges, long-term survival strategies, professionalizing the cannabis sector, and normalizing cannabis in mainstream markets.

GTI CEO's Divorce Deal Impacts Voting Power

GTI CEO Ben Kovler transferred 35,000 super-voting shares, a 19% drop, valued at around C$52.5 million as part of his divorce settlement.

This strategic move involved converting some shares into multiple and then subordinate voting shares.

Kovler's pre-settlement hold on 72.81% of super-voting shares dwindled to 62.6%.

This complex share structure, with super-voting shares carrying 1,000 votes, can convert into multiples, and further into subordinates, which could affect GTI's internal dynamics.

Despite this, GTI assures stakeholders that neither Kovler nor other management members plan to sell additional shares tied to the settlement, reported Adam Jackson for GMR.

Photo by Tom Wilson on Unsplash.