Green Thumb Industries Inc. GTII GTBIF, the owner of RISE Dispensaries, announced a $50 million share repurchase program on Monday.
What Happened: The company's board of directors approved the repurchase of up to 10,573,860 of its subordinate voting shares from time to time over the next 12 months.
The program will commence on Sept. 23, 2024, and expire on Sept. 22, 2025. Green Thumb's previous repurchase program expired on Sept. 10, 2024, under which the company repurchased 6.5 million shares for $73.3 million.
The news comes on the heels of the company's announcement that it has closed on a $150 million five-year syndicated credit facility led by Valley National Bank, the principal subsidiary of Valley National Bancorp.
Read Also: Green Thumb's Q2 Revenue Soars 11% To $280M, Is Rising Cost Something To Watch?
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Why It Matters: Green Thumb CEO Ben Kovler said the buyback program allows it to be more flexible in using its cash reserves to repurchase more shares, if an opportunity arises.
"We love our balance sheet, particularly in light of the recent refinancing, and remain open to strategic M&A, capital expenditures into the business and unique investment opportunities," Kovler said. "The future is bright for Green Thumb as America craves more well-being and more cannabis."
In June, Green Thumb expressed interest in merging with Boston Beer SAM, a deal observers thought could reshape the cannabis and beverage sectors. The transaction would create a company with $3 billion in proforma 2023 revenues, with two-thirds from Boston Beer.
GTBIF Price Action
Green Thumb's shares traded 0.04% higher at $10.33 per share after the market close on Friday afternoon.
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