Friday, November 22, 2024
HomeBusinessBuds over Boos: Jim Beam Heir Turns to Pot With Plan for...

Buds over Boos: Jim Beam Heir Turns to Pot With Plan for a Cannabis Empire

via Ilovetogrowmarijuana

When alcohol prohibition finally came to an end, liquor flowed in the streets and money into the pockets of many bars and distributiors. As we stare at a new prohibiton the heir of a major liquor brand plans to be there when the cannabis prohibition ends.

Per Bloomberg

Shortly after Prohibition ended, one of Ben Kovler’s ancestors invested $5,000 in a family of distillers led by James Beauregard Beam.

Kovler, 39, sees similarities between the liquor industry of the 1930s, when his great-grandfather Harry Blum helped build Jim Beam into one of the most recognizable bourbon brands, and today’s market for cannabis. With the end of what he calls “Prohibition 2.0,” Kovler is preparing to take Green Thumb Industries public in Canada.

GTI, a cultivator, processor and dispensary owner that operates in six U.S. states, plans to go public next month through a reverse merger with an already-listed Canadian company, Kovler, the firm’s founder and chairman, said in an interview. He’s also the biggest shareholder.

Prospects for the cannabis industry have never been greener as a majority of Americans now favor legalization. Twenty-nine states allow cannabis for medical or recreational use and sales are projected to reach $75 billion by 2030 from about $6 billion in 2016, according to Cowen & Co. Because federal law still prohibits it in the U.S., producers are turning to Canada, where full legalization is expected this year.

Kovler said he and Chief Executive Officer Pete Kadens, 40, hope to grow the business quickly before more U.S. markets open up. GTI operates 12 dispensaries in Maryland, Massachusetts, Nevada, Pennsylvania and Illinois, and has plans to expand to Florida. With products in more than 100 stores, the company’s revenue topped $20 million last year and should exceed $70 million this year, Kovler said.

Having closed a $45 million funding round this year, with backing from mostly U.S. investors, GTI is turning to Canada because the cost of raising capital there will be cheaper, he said. The company intends to use the cash to acquire or build facilities and licenses in more markets.

“A lot of people think this stuff is about liquidity and finding exits, and I firmly believe the bigger opportunity for us is to go to Canada and use that currency to increase our scale,” said GTI investor Sanjay Tolia, who founded Bengal Capital, a proprietary-trading firm. “It’s hard to do that if you’re not public.”

Read more here

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments