Paper Portfolio I Green Thumb Industries Launches IPO to Raise $100 Million

Retail investors also reacted positively to this news, as the increased interest from institutional investment bodies was interpreted as further proof of Green Thumb Industries long-term viability.

Investors in the Illinois-headquartered cannabis producer, Green Thumb Industries (CSE:GTII), saw its share price climb to 46.40 earlier this month, when the company announced an initial public offering up to 10,000,000 of its subordinate voting shares, with the aiming of raising $100,000,000 in funding.

And in a strong show of confidence, shortly before the placement became active the company received an offer from an institutional investor to purchase approximately 3.1 million registered subordinate voting shares at $32.03 per share.

Although the identity of the institutional investor initially remained anonymous, reports suggest that it may have been investment firm Palestra Capital Management, which currently holds approximately $4.3 billion in assets across 29 different companies.  

There are also rumours that Palestra Capital Management may be the same group that purchased 5.5 million shares in Green Thumb Industries in October 2020—along with a further 2.5 million in December—as the company has subsequently disclosed that it now owns roughly 5.3% of GTI stock.

Retail investors also reacted positively to the news, as the increased interest from institutional investment bodies was interpreted as further proof of Green Thumb Industries long-term viability.

"Institutional investors are waking up to the great American cannabis growth story. This investment reflects the very real interest, understanding, and momentum behind the potential $100 billion U.S. cannabis opportunity that is happening now," Green Thumb Industries CEO Ben Kovler said.

"The industry needs more meaningful access to capital to unleash the true economic and social growth potential. The next step should be allowing U.S. cannabis companies to formally list on major U.S. exchanges just like our Canadian counterparts."

"The U.S. cannabis industry creates jobs, tax revenue, and has the opportunity to address head on some of the major injustices and inequities brought on by the War on Drugs."

Disclaimer: Past performance is not an indicator of future performance.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.