Marijuana multistate operator Green Thumb Industries is poised to repurchase as much as 5% of its outstanding subordinate voting shares over the course of a year.
The Chicago-based MSO will spend up to $50 million on the share buybacks, at its discretion, according to a news release.
The buybacks could start Sept. 11.
However, Green Thumb management is not obligated to buy the shares if “it has a better use for its cash reserves.”
Green Thumb CEO Ben Kovler called the share buybacks “an appropriate tool for creating shareholder value without compromising our growth initiatives.”
The plan was underway before the recent news about the potential rescheduling of marijuana by the U.S. government, Kovler said in a statement.
That news led to a spike in cannabis equity prices, including Green Thumb’s.
“Having witnessed a 30-plus percent move in the sector based on news from Washington, DC, we want the ability to take advantage for shareholders should the opportunity arise,” Kovler said.
Green Thumb said it can suspend its share-purchase program at any time and that the purchase prices “will depend upon market conditions at the time and securities law requirements.”
The company is one of only a few profitable publicly traded cannabis operators in the U.S., where it operates in 14 states.
H/T: mjbizdaily.com
