CHICAGO and VANCOUVER, British Columbia, Sept. 5, 2023 – PRESS RELEASE – Green Thumb Industries Inc., a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, announced that its board of directors has authorized the repurchase pursuant to a normal course issuer bid, of up to 10,486,951 of its subordinate voting shares (up to 5% of the class) from time to time over a 12-month period. The board authorized the company to spend up to US$50 million for the repurchase program.
“We believe instituting a share repurchase program is an appropriate tool for creating shareholder value without compromising our growth initiatives,” Green Thumb founder, Chairman and CEO Ben Kovler said. “This action was in the works before last week’s announcement from the U.S. Department of Health and Human Services, which called for cannabis to be reclassified to Schedule III. Having witnessed a 30-plus percent move in the sector based on news from Washington, D.C., we want the ability to take advantage for shareholders should the opportunity arise.”
Kovler added, “As Warren Buffett taught us in this year’s Berkshire Hathaway annual letter to shareholders, ‘The math isn’t complicated: When the share count goes down, your interest in our [business] goes up. Every small bit helps if repurchases are made at value-accretive prices.’ We are excited about the future for Green Thumb and cannabis in America.”
There were 209,239,033 Shares outstanding as of Aug. 1, 2023. While the timeframe to purchase shares starts on Sept. 11, 2023, and ends not later than Sept. 10, 2024, Green Thumb is not obligated to purchase any shares. If management determines it has a better use for its cash reserves, it is under no obligation to continue to purchase shares, and share purchases may be suspended or terminated at any time at Green Thumb’s discretion.
Shares may be purchased on the Canadian Securities Exchange, the OTCQX Best Market, or alternative trading systems and will be subject to the limitations and rules imposed by U.S. and Canadian securities regulations.
The company does not expect to incur debt to fund the share repurchase program. The actual number of shares purchased, timing of purchases and share price will depend upon market conditions at the time and securities law requirements. All shares acquired will be returned to treasury and canceled.
