Green Thumb Industries (CSE: GTII) is looking to get investors excited again, announcing this morning it would be conducting a large share repurchase program.
The US multi state cannabis operator is looking to spend up to US$50 million on a stock buyback program, with that figure representing roughly a third of all cash it had on hand as of June 30. The company intends to repurchase up to 10.5 million subordinate voting shares over a twelve month period.
“We believe instituting a share repurchase program is an appropriate tool for creating shareholder value without compromising our growth initiatives. 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,” commented CEO Ben Kovler on the announcement.
The company does not intend to incur debt as a result of the repurchases, nor is it obligated to repurchase any. The program will begin on September 11, 2023, and run for a period of twelve months.
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Green Thumb Industries last traded at $12.81 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
