Green Thumb Industries Is Doing All The Right Things As Of Late
Green Thumb Industries Inc (CSE: GTII, OTCQX: GTBIF), a heavyweight in the cannabis consumer goods arena and proud parent of RISE Dispensaries, is back with a share buyback program worth a cool $50 million. This newly announced plan comes hot on the heels of their previous repurchase spree that netted 6.5 million shares for a tidy sum of $73.3 million. Starting September 23, 2024, Green Thumb has 12 months to scoop up a potential 10.57 million of its Subordinate Voting Shares, adding a little razzle-dazzle to its already impressive balance sheet.
Founder, Chairman, and CEO Ben Kovler’s excitement is palpable: “We believe in buybacks, especially when prices are attractive.” Translation: they’re ready to pounce if the market serves up a tasty discount. Kovler continues to wax lyrical about the company’s pristine balance sheet (thanks to some recent refinancing) and hints that the buyback is just one tool in Green Thumb’s toolkit. The company’s appetite for M&A deals and capital expenditures remains strong, but they’re keeping cash reserves warm and ready to fire if needed.
But let’s be clear—this isn’t a reckless spending spree. Green Thumb isn’t bound to buy up shares just for the sake of it. If they find better uses for their cash, they’ll pivot faster than a stoner spotting a snack. Plus, the fact that this program won’t be funded by debt is a cherry on top, signaling they’re flush with cash and prudent with their spending habits.
The cannabis market, like any other, can be a wild ride, and the actual buyback will be subject to market conditions. Timing and pricing will be crucial, and Green Thumb Industries is keeping things flexible, with the option to pull back from the buyback if the stars don’t align. But, if all goes according to plan, those repurchased shares will be promptly returned to treasury and canceled—leaner, meaner, and ready for whatever the future of cannabis brings.
