Market Overview

Green Thumb Industries (GTI) Announces Revenue up 291% in Second Quarter 2018


Market Expansion and Disciplined Capital Allocation Lay Foundation
for Continued Growth

Green Thumb Industries Inc. ("GTI" or the "Company") (CSE:GTII) (OTCQX: GTBIF), a national cannabis consumer packaged goods company and
owner-operator of the high growth national retail chain RISE™
Dispensaries, today reported its financial results for the second
quarter ended June 30, 2018.

Financial Highlights

  • Second quarter 2018 revenues increased 291% year-over-year to $13.6
    million. Quarter-over-quarter revenues increased 25%.
  • EBITDA1 was a negative $4.7 million for the quarter.
    Adjusted EBITDA1 which excludes non-cash and one-time
    expenses related to the Bayswater reverse takeover transaction ("RTO")
    was $0.5 million.
  • GTI's net income was $0.4 million, up from a loss of $1.6 million in
    first quarter 2018.
  • Current assets totaled $128.4 million as of June 30, 2018, including
    cash and cash equivalents of $112.7 million.
  • The Company has approximately $7.9 million of total debt, $1.4 million
    of which is due within 12 months.
  • The Company raised net proceeds of $61 million through a brokered and
    non-brokered private placement in connection with the RTO of a
    Canadian public company.

Management Commentary

"The second quarter was a critical quarter for GTI. We became a
publicly-traded company on June 13th. The team has been hard
at work and that is reflected in the results for our first reporting
period as a public company – generating solid revenue growth, raising
capital, entering new markets and attracting top talent," said GTI
Founder and Chairman Ben Kovler.

"What lies ahead is even more exciting as this rapidly evolving industry
takes shape," Kovler continued. "We strongly believe that brands
developed and produced thoughtfully, consistently, and with the consumer
in mind is the path to creating and capturing the most long-term
shareholder value. Over the past four years, we've built a solid base
business on that conviction and our strategy to distribute brands at
scale is supported by our vertically integrated business and leading
national distribution platform across eight states with a total reach of
over 94 million people. We also have a strong balance sheet and are
focused on allocating that capital to position the business for growth
opportunities ahead."

Business Infrastructure Development

Through business development and acquisition-related activities, the
Company's geographic reach expanded to eight U.S. markets with a total
population of over 94 million and includes eight cultivation and
manufacturing facilities and licenses for 59 retail stores. The Company
made substantive progress in the following areas:

  • New York License: The Company executed a definitive agreement to
    acquire a New York licensee, which will make GTI one of ten license
    holders in the regulated New York State cannabis market.
  • Ohio Dispensary Licenses: The Company was awarded licenses to open
    five dispensaries in Ohio, the maximum number permitted under current
  • Talent: Hired over 150 new team members across the country, bringing
    the total headcount to approximately 400. Over 100 employees are
    equity holders in the Company. A stock option plan has been developed
    to continue to align incentives with shareholders.
  • Board of Directors: The Company is building a world-class board of
    directors with strong independent members. Additions include Glen T.
    Senk and Wes Moore. Senk, ex-CEO of Urban Outfitters, scaled the
    Anthropologie retail concept. Moore is the CEO of Robin Hood, New York
    City's largest poverty-fighting organization.

Consumer Packaged Goods Business Development

  • At the end of the second quarter, the Company generated wholesale
    revenue by producing and distributing consumer packaged products in
    three out of eight GTI markets – Illinois, Maryland and Pennsylvania.
  • Nevada, Massachusetts, Florida and New York are in various stages of
  • GTI continues to build out and increase the reach of its suite of
    branded products including Rythm, DogWalkers and The Feel Collection.

Retail Business Development

  • The Company opened five RISE retail stores in the second quarter,
    bringing the total store count to 13.
  • Stores opened in Pennsylvania (Erie, Steelton, Carlisle); Maryland
    (Joppa); and Massachusetts (Amherst).
  • Total consolidated revenue includes 10 of the 13 open stores as two
    are pending the closing of the transaction (Steelton and Carlisle) and
    the other is a non-consolidated joint venture (Effingham).

Capital Markets and Financing Activities

  • Listed subordinate voting shares on the Canadian Securities Exchange
    ("CSE") under the ticker symbol "GTII" and began trading on June 13.
  • Following the quarter, listed subordinate voting shares on the OTCQX
    Best Market under the ticker symbol "GTBIF" and began trading on July
  • Subsequent to the end of the second quarter, GTI closed a bought deal
    financing transaction raising $59 million in net proceeds which will
    be used to close the definitive agreement to acquire a license in New
    York and the buildout of five Ohio dispensaries.

Second Quarter 2018 Financial Overview

For the purpose of analysis, total revenue is segmented into wholesale
and retail. Wholesale revenue is attributable to the manufacture, sale
and distribution of packaged cannabis products to third-party retail
customers. Retail revenue is attributable to direct sales to end
consumers in the Company's retail stores.

As of the three months ended June 30, 2018, GTI has operating revenue in
five of its eight markets: Nevada, Illinois, Pennsylvania,
Massachusetts, and Maryland and has ramped up expenses related to the
buildout of new markets in Florida, Ohio and New York in preparation for
revenue generation in the second half of 2018 and into 2019.

Total revenue for the second quarter of 2018 was $13.6 million, as
compared to $3.5 million for the second quarter of 2017 and $10.9
million for the first quarter of 2018. The year-over-year revenue
increase was primarily driven by increased wholesale distribution of its
finished branded products to retail customers in Illinois and Maryland,
along with increased foot traffic in the Company's retail stores across
all five markets. In particular, year-over-year retail growth was driven
by new store openings and acquisitions: notably revenue from the
acquisition of two Illinois stores, the opening of RISE stores in
Pennsylvania and Maryland, a new RISE store in Nevada and the
commencement of adult use sales in the Nevada market.

Gross profit before biological asset adjustment for the second quarter
of 2018 was $6.3 million or 46%, as compared to $1.7 million or 50% for
the second quarter of 2017. Gross profit after net gains on biological
asset transformation for the second quarter was $6.9 million,
representing a gross margin of 50%, as compared to 36% for the same
period a year ago, and driven by increased harvested cannabis and
wholesale shipments.

General and administrative expenses were $11.3 million for the second
quarter of 2018, as compared to $2.5 million for the same period last
year. The increase was driven by $4.0 million of salaries and benefits
due to an increase in headcount from the Company's new retail facilities
in Illinois, Nevada, Maryland and Pennsylvania along with corporate
staff development and a non-cash charge related to equity incentive
compensation of $1.0 million. The Company also recorded a non-cash
listing fee of $3.0 million in addition to $1.3 million of one-time
professional fees related to the RTO.

Other income was $34.5 million for the second quarter of 2018, primarily
reflecting the fair market value of outstanding warrants held in iAnthus
Capital Holdings related to a Debenture Purchase Agreement with the
company that was executed in January of 2018.

GTI's net income for the second quarter of 2018 was $0.4 million,
compared to a net loss of $1.3 million for the second quarter of 2017,
and net loss of $1.6 million for the first quarter of 2018.

EBITDA1 loss was $4.7 million for the second quarter of 2018,
compared to EBITDA1 loss of $1.3 million for the second
quarter of 2017. Excluding one-time charges of $1.0 million in expenses
related to employee equity grants (non-cash), and $4.3 million related
to the RTO, GTI generated $0.5 million in adjusted EBITDA1
for the second quarter of 2018.

Balance Sheet and Liquidity

As of June 30, 2018, total assets were $230.1 million, including cash
and cash equivalents of $112.7 million and long-term liabilities of
$10.4 million. The Company has $7.9 million of total debt, $1.4 million
of which is due within 12 months. Total authorized and issued common
shares on a fully diluted basis were 139,471,034.

Subsequent to the end of the second quarter, GTI closed a bought deal
financing for net proceeds of $59 million. The net proceeds will provide
funding to close the definitive agreement to acquire a license in New
York and the buildout of five Ohio dispensaries.

Total authorized and issued common shares on a fully diluted basis
including the subsequent raise is 146,771,034.

Additional Information

Additional information relating to the Company's second quarter 2018
results is available on SEDAR at
in the Company's Interim Financial Statements and Management Discussion
& Analysis ("MD&A").

GTI refers to certain non-IFRS financial measures such as Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA) and
adjusted EBITDA earnings defined as earnings before interest, taxes,
depreciation, amortization, less certain non-cash equity compensation
expense, including one-time transaction fees and all other non-cash
items. These measures do not have any standardized meaning prescribed by
IFRS and may not be comparable to similar measures presented by other




Please see the "Supplemental Information (Unaudited) Regarding
Non-IFRS Financial Measures" at the end of this press release for
more detailed information regarding non-IFRS financial measures.

Conference Call and Webcast

GTI will host a conference call on Tuesday, August 28, 2018 at 5:00 pm
ET to discuss its financial results for the second quarter ended 2018.
The conference call may be accessed by dialing 877-273-8145 (Toll-Free)
or 647-689-5400 (International) with conference ID: 6479046. A live
audio webcast of the call will also be available on the Investor
Relations section of GTI's website at
and will be archived for replay.

About Green Thumb Industries:

Green Thumb Industries (GTI), a national cannabis cultivator, processor
and dispensary operator, is dedicated to providing dignified access to
safe and effective cannabis nationwide while giving back to the
communities in which it serves. As a vertically integrated company, GTI
manufactures and sells a well-rounded suite of branded cannabis products
including flower, concentrates, edibles, and topicals. The Company also
owns and operates a rapidly growing national chain of retail cannabis
stores called RISE™ dispensaries. Headquartered in Chicago, Illinois,
GTI has eight manufacturing facilities and licenses for 59 retail
locations across eight highly regulated U.S. markets. Established in
2014, GTI employs approximately 400 people and serves thousands of
patients and customers each year. GTI was named a Best Workplace 2018 by
Crain's Chicago Business. More information is available at

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute "forward-looking
information" within the meaning of applicable securities laws, including
statements regarding the plans, intentions, beliefs and current
expectations of GTI with respect to future business activities.
Forward-looking information is often identified by the words "may,"
"would," "could," "should," "will," "intend," "plan," "anticipate,"
"believe," "estimate," "expect," or similar expressions and include
information regarding: (i) statements regarding the future direction of
GTI, (ii) the ability of the Company to successfully achieve its
business objectives, (iii) plans for expansion of GTI, and (iv)
expectations for other economic, business and/or competitive factors.

Investors are cautioned that forward-looking information is not based on
historical facts but instead reflect GTI management's expectations,
estimates or projections concerning the business of GTI future results
or events based on the opinions, assumptions and estimates of management
considered reasonable at the date the statements are made. Although GTI
believes that the expectations reflected in such forward-looking
information are reasonable, such information involves risks and
uncertainties, and undue reliance should not be placed on such
information, as unknown or unpredictable factors could have material
adverse effects on future results, performance or achievements of the
combined company. Among the key factors that could cause actual results
to differ materially from those projected in the forward-looking
information are the following: the potential impact of the announcement
of the going public transaction on relationships, including with
regulatory bodies, employees, suppliers, customers and competitors;
changes in general economic, business and political conditions,
including changes in the financial markets; and in particular in the
ability of the Company to raise debt and equity capital in the amounts
and at the costs that it expects; adverse changes in the public
perception of cannabis; decreases in the prevailing prices for cannabis
and cannabis products in the markets that the Company operates in;
adverse changes in applicable laws; or adverse changes in the
application or enforcement of current laws; and increasing costs of
compliance with extensive government regulation. This forward-looking
information may be affected by risks and uncertainties in the business
of GTI and market conditions.

Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking information prove
incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated, believed, estimated or
expected. Although GTI has attempted to identify important risks,
uncertainties and factors which could cause actual results to differ
materially, there may be others that cause results not to be as
anticipated, estimated or intended. GTI does not intend, and does not
assume any obligation, to update this forward-looking information except
as otherwise required by applicable law.

No securities regulatory authority has in any way passed upon the merits
of the proposed transactions described in this news release or has
approved or disapproved of the contents of this news release.

Green Thumb Industries Inc. (formerly Bayswater Uranium
Unaudited Interim Condensed Consolidated Statements of Operations
For the Three Month Periods Ended June 30, 2018 and 2017
(Amounts Expressed in United States Dollars)

Three Months Ended

June 30,

  2018     2017  
(Unaudited) (Unaudited)
Revenues, net of discounts $ 13,624,658 $ 3,480,568
Cost of Goods Sold, net   (7,337,040 )   (1,741,556 )
Gross Profit before Biological Asset Adjustment   6,287,618     1,739,012  
Net Effect of Changes in Fair Value of Biological Assets   584,764     (494,960 )
Gross Profit   6,872,382     1,244,052  
General and Administrative 11,251,399 2,471,811
Sales and Marketing 354,292 32,324
Depreciation and Amortization   522,550     54,026  
Total Expenses   12,128,241     2,558,161  
Loss From Operations   (5,255,859 )   (1,314,109 )
Other Income (Expense):
Other Income (Expense), net 34,612,194 -
Interest Income 378,082 -
Interest Expense   (466,668 )   (9,667 )
Total Other Income (Expense)   34,523,608     (9,667 )
Income (Loss) Before Provision for Income Taxes And
Non-Controlling Interest
  29,267,749     (1,323,776 )
Provision For Income Taxes   4,253,000     -  
Net Income (Loss) Before Non-Controlling Interest 25,014,749 (1,323,776 )
Net Income Attributable To Non-Controlling Interest   24,621,861     -  
Net Income (Loss) Attributable To Green Thumb Industries Inc. $ 392,888   $ (1,323,776 )
Net Income (Loss) per share - basic and diluted $ 0.00
Weighted average number of shares outstanding - basic and diluted 139,471,034
Green Thumb Industries Inc. (formerly Bayswater Uranium
Interim Condensed Consolidated Statements of Financial Position
(Amounts Expressed in United States Dollars)
June 30, December 31,
2018 2017
(Unaudited) (Audited)
Current Assets:
Cash and Cash Equivalents $ 112,650,317 $ 29,565,497
Accounts Receivable 2,303,003 892,373
Members Contribution Receivable - 2,785,998
Due from Related Parties 3,109,695 1,188,686
Inventories 6,254,143 2,689,762
Biological Assets 2,221,273 2,117,131
Prepaid Expenses and Other Current Assets   1,902,377   550,389
Total Current Assets 128,440,808 39,789,836
Property and Equipment, Net 40,226,129 31,558,357
Intangible Assets, Net 14,124,874 14,161,995
Investments 39,057,680 -
Goodwill 188,260 188,260
Deposits and Other Assets   8,102,505   1,458,833
TOTAL ASSETS $ 230,140,256 $ 87,157,281
Current Liabilities:
Accounts Payable


$ 4,659,685 $ 4,044,760
Accrued Liabilities 2,988,800 1,160,521
Current Portion of Notes Payable 1,437,303 8,861,376
Income Tax Payable   197,490   214,000
Total Current Liabilities 9,283,278 14,280,657
Long-Term Liabilities:
Deferred Rent 296,769 301,105
Deferred Income Taxes 3,685,000 -
Notes Payable, Net of Current Portion   6,467,787   7,206,673
TOTAL LIABILITIES 19,732,834 21,788,435
NON-CONTROLLING INTEREST   38,428,110   3,366,350


$ 230,140,256 $ 87,157,281
Green Thumb Industries Inc. (formerly Bayswater Uranium
Supplemental Information (Unaudited) Regarding Non-IFRS Financial
For the Three Month Periods Ended June 30, 2018 and 2017
(Amounts Expressed in United States Dollars)
The following information provides reconciliations of the
supplemental non-IFRS financial measures, presented in this press
release to the most directly comparable financial measures
calculated and presented in accordance with International Financial
Reporting Standards. The Company has provided the non-IFRS financial
measures in the press release, which are not calculated or presented
in accordance with IFRS, as supplemental information and in addition
to the financial measures that are calculated and presented in
accordance with IFRS. These supplemental non-IFRS financial measures
are presented because management has evaluated the Company's
financial results both including and excluding the adjusted items
and believe that the supplemental non-IFRS financial measures
presented provide additional perspective and insights when analyzing
the core operating performance of the Company's business. These
supplemental non-IFRS financial measures should not be considered
superior to, as a substitute for or as an alternative to, and should
be considered in conjunction with, the IFRS financial measures
presented in the press release.
  Three Months Ended

June 30,

  2018       2017  
Operating expenses (IFRS) $ 12,128,241 $ 2,558,161
Employee equity grants, non-cash (1,006,988 ) -
Bayswater listing fees, non-cash (3,002,634 ) -
RTO-related expenses   (1,262,429 )   -  
Adjusted operating expenses (non-IFRS measure) $ 6,856,190   $ 2,558,161  
Loss from operations (IFRS) $ (5,255,859 ) $ (1,314,109 )
Depreciation and amortization   522,550     54,026  
Earnings before interest, taxes, depreciation and amortization
(EBITDA) (non-IFRS measure)
$ (4,733,309 ) $ (1,260,083 )
Loss from operations (IFRS) $ (5,255,859 ) $ (1,314,109 )
Depreciation and amortization 522,550 54,026
Employee equity grants, non-cash 1,006,988 -
Bayswater listing fees, non-cash 3,002,634 -
RTO-related expenses   1,262,429     -  
Adjusted EBITDA (non-IFRS measure) $ 538,742   $ (1,260,083 )

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