An Illionis based company, Green Thumb Industries, will purchase the Essence dispensary brand for $290 million in cash and shares ($52 million in cash & $20.8 million in shares), creating the biggest dispensary operator by locations. The deal is the largest ever in the Nevada marijuana industry. Green Thumb will now operate five dispensaries in Nevada, including the only one on the Strip.
Integral Associates, owner of three Essence dispensaries and two cultivation/processing facilities signed the deal and announced that Integral Associates CEO Armen Yemenidjian will become president of Green Thumb.
With Nevada recreational marijuana sales reaching $425 million in the first year and surpassing forecasts, Nevada and Las Vegas in particular, has caught the attention of cannabis companies worldwide. Las Vegas is a key market for cannabis companies seeking to a grow their national and international brand awareness as the town is visited annually by over 42 million tourists from around the world. Many are predicting that Nevada recreational marijuana sales will reach $1 billion by 2022.
Green Thumb was only the latest company to acquire a Nevada marijuana company this year. Other purchases of dispensaries include:
Xanthic Biopharma completed their purchase of Nevada Organic Remedies LLC – $56 million.
Golden Leaf Holdings has signed an agreement to buy Tahoe Hydroponics Company and 11T Corp. – $40 million in cash and shares.
C21 Investments is buying Silver State Relief LLC and Silver State Cultivation LLC – $50 million in cash and shares.