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🏪 GTI to Launch “RISE Express” Dispensaries in Florida through Lease Agreement with Circle K

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🏪 GTI to Launch “RISE Express” Dispensaries in Florida through Lease Agreement with Circle K

GTI expands Retail Footprint through exclusive Lease Agreement with Circle K, one of the Largest Convenience Store Chains in the U.S. with ~6,000 stores.

Dai Truong
Oct 19, 2022
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🏪 GTI to Launch “RISE Express” Dispensaries in Florida through Lease Agreement with Circle K

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👥 Follow on LinkedIn/Twitter for more real-time updates.


Press Release

Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced plans to expand its medical retail footprint in Florida through a lease agreement with Circle K, the global convenience store retailer. Starting in 2023, Green Thumb plans to launch its test and learn phase of the rollout with approximately ten “RISE Express” branded dispensaries adjacent to Circle K stores in various Florida locations.

Through the exclusive agreement, Green Thumb can lease space from Circle K in Florida, where the retailer currently operates approximately 600 locations. The “RISE Express” stores will offer patients a selection of branded cannabis products including RYTHM premium flower, Dogwalkers pre-rolls, incredibles gummies and &Shine vapes.

“The opening of RISE Express stores at Circle K locations is a game-changer. Convenience is a strong channel in retail, and people want more access to cannabis,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “The new RISE Express model is a huge step forward in making it easier and more efficient for patients to purchase high-quality cannabis as part of their everyday routine when stopping by their local convenience store.” 

The products available at these retail stores will come from the Company’s new 28-acre cultivation facility in Ocala that will be operational by the end of 2022. Green Thumb entered the Florida market in 2018 and currently owns and operates medical cannabis retail stores in Bonita Springs, Deerfield Beach, Hallandale Beach, Kendall, Oviedo, Pinellas Park and West Palm Beach. The Company also has an existing cultivation and processing facility in Homestead.

According to the Florida Department of Health, over 700,000 Floridians are currently registered active cardholders in the state’s medical marijuana program.


Industry Thoguhts

In speaking with Bloomberg, Ben Kovler mentioned “there's appetite” from Circle K to work together in other states.

Twitter avatar for @todd_harrison
Todd Harrison @todd_harrison
from sales coverage re Circle K / GTI /position
Image
12:48 PM ∙ Oct 19, 2022
9Likes1Retweet
Twitter avatar for @BCobblaw
Brady Cobb @BCobblaw
1/2-Big news from @GTIGrows and @Bkov9 on the Circle K partnership. I have consistently said that too much cannabis specific retail prove to be problematic when US retailers enter the game. If GTI can leverage just 25% of Circle K’s stores in FL, that would equate to 150 stores-
1:50 PM ∙ Oct 19, 2022
Twitter avatar for @BCobblaw
Brady Cobb @BCobblaw
at a fraction of the cost of competitors. This is just the start, but further reinforces another thesis that brands will 100% matter as CPG scales. Lastly, Circle K doesn’t make this move without a strong belief that Biden’s rescheduling process is real imho. Onward #legalizeit
1:54 PM ∙ Oct 19, 2022
Twitter avatar for @MeridaCap
Merida Capital Holdings @MeridaCap
Very smart. Saves on having to spend $2mm+ opening dispos, which is smart since mid term ROIC on capex in FL probably has a negative return for all but top 5 operators, something our coming commentary delves deeply into.
Twitter avatar for @stock_mj
MJ Stock Trader @stock_mj
Circle K, the global convenience-store chain, signed a deal with Green Thumb Industries Inc., one of the largest US cannabis producers, to sell licensed marijuana at its Florida gasoline retailers. $GTBIF $GTII @GTIGrows https://t.co/FXDOCk4Rh4
12:05 PM ∙ Oct 19, 2022
22Likes2Retweets
Twitter avatar for @CaltabianoJoe
Joe Caltabiano @CaltabianoJoe
Some MSO’s are playing checkers (and they might be swallowing the pieces) while GTI is playing 3 dimensional Chess. #benkovler
finance.yahoo.comGreen Thumb to Launch “RISE Express” Dispensaries in FloridaCompany Expands Retail Footprint Through Exclusive Lease Agreement with Circle K, one of the Largest Convenience Store Chains in the U.S. RISE Dispensary Express “RISE Express” branded dispensaries will be located adjacent to Circle K stores CHICAGO and VANCOUVER, British Columbia, Oct. 19, 2022 (GL…
2:24 PM ∙ Oct 19, 2022
Twitter avatar for @berner415
Berner @berner415
CEO’s of MSO’s that smoke dog walkers made with trim can’t be trusted ….. just my two cents
2:59 PM ∙ Oct 19, 2022
68Likes15Retweets
Notes
Source: July 2022 Investor Presentation
Fire & Flower launches pilot with Circle K
Source: Mugglehead

The parent company to Circle K, Alimentation Couche-Tard (ACT), currently operates co-located stores (Dispensary + Circle K store that includes fuel, car wash, food, snacks and covenience items) with Fire & Flower in Canada, and is a major investor in the company (potential for majority ownership should they exercise warrants that expire June 30, 2023). Just yesterday, Fire & Flower announced a $16M Private Placement and Loan Agreement with ACT ($11M Loan at 11% interest, $5M Private Placement for ~3M common shares at ~$1.65 with warrants). Fire & Flower generated C$40.7M of Revenue and (C$6.0M) of EBITDA in Q2 2022 (12 weeks ended July 30, 2022). Fire & Flower also has a U.S. entry plan through a strategic agreement (Fire & Flower US) with a U.S. branded store currently opened in Palm Springs, with stated interest in exploring additional retail opportunities in key states (WA, OR, AZ, CO, and NM). Stéphane Trudel who took the CEO seat at Fire & Flower in June 2022 was previously Senior SVP, Operations at ACT. It should also be noted that the CFO (Judy Adam) did resign last week.

Source: July 2022 Investor Presentation
Source: Q2 2022 Investor Presentation
Source: July 2022 Investor Presentation

👋 Highly Objective is curated by Dai Truong, who leads Cannabis Investment Banking at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.    

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🏪 GTI to Launch “RISE Express” Dispensaries in Florida through Lease Agreement with Circle K

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