GTBIF is a LONG.
We have been writing on Green Thumb since we launched on the US MSO's back in March 2019, and the stock has been a LONG since we launched. The three key points on why we like GTI at the time were:
- Building a platform (or two)
- Brands, Brands, Brands
- Solid Management and Strong Corporate Governance
I don't know what I don't know, but what I do know is that since launching coverage on GTI, the company has lived up to and delivered on expectations. Going one step further, the company has exceeded expectations in many ways. Yesterday, the Chicago Tribune wrote an article challenging our third key point and attacked management with very little substance. In fact, doing a little digging on the internet revealed that a Hedge Fund owns the Chicago Tribune. It's also month-end, so who might want to have a nice mark on their short position by feeding a negative story about the company and its founder and CEO, Ben Kovler? The hedge fund is based in NYC, and Vanity Fair wrote a story about the fund calling it "the grim reaper of American newspapers."
The Tribune article said that GTI is under federal investigation for possible pay-to-play violations during its push for coveted state licenses but did not give any dates. GTI is Chicago-based and was founded in 2015. The paper said, "Investigators have been scrutinizing campaign donations and other steps Green Thumb Industries took as it sought to secure growing and distribution licenses in Illinois and several other states, sources told the Chicago Tribune." There is no evidence of any federal investigation, and paying lobbyists or making a political donation is not illegal. The article is vague and lacks supporting evidence that it looks like a hedge fund is short and planted the article.
We believed at the time we initiated GTI that the culture and the management team were some of the best in the business and still feel that way. In fact, in our initial visit to the company back in 2019, we met many of the key players, including Laura Brown, who we dubbed at the time GTI's "secret weapon!" Laura and her mother, a nurse (I believe), were early pioneers in the Cannabis industry, founded Chesapeake Alternatives, which I believe GTI purchased and is the basis for Maryland operations. Also, please note the management team's diversity, which also speaks to the integrity of the company founder, Ben Kovler.
We are hosting a Fireside chat with Ben Kovler on 4/16 at 10 AM EST. Ben serves as the CEO and Chairman of Green Thumb Industries. Ben founded GTI in 2014 and has successfully grown it into a national cannabis consumer packaged goods company and retailer that manufactures and distributes a portfolio of branded cannabis products.
