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