![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Tuesday, May 04, 2021 2:58:15 PM
CONTRIBUTOR Eric Volkman The Motley Fool
PUBLISHED MAY 3, 2021 6:09PM EDT
What happened
The shares of marijuana company Green Thumb Industries (OTC: GTBIF) saw an early pop on Monday, on news that the company is buying into the Virginia market. That investor euphoria didn't last, however, and ultimately the stock closed the day 1.1% lower.
So what
Green Thumb has signed a deal to acquire privately held Dharma Pharmaceuticals, one of only four operating dispensaries in the state. Green Thumb didn't disclose the price of the acquisition.
Normally, the purchase of a single dispensary wouldn't get investors excited. What's exceptional about this one is that Virginia just legalized recreational marijuana, following a general trend that has seen other U.S. states flip that switch (New York, New Jersey, Arizona, etc.). So investors were likely reacting to Green Thumb's early-mover purchase.
There's a very big caveat, however -- Virginia's new law won't take effect until 2024. So what Green Thumb is buying will, for the next few years, remain a local operator allowed to sell product only to customers with valid, state-issued medical marijuana cards.
Now what
Yet most marijuana stock investors are in this game for the long haul. The recreational legalization wave hasn't crested yet, in my view, and once key Democratic lawmakers get done with their big economic support initiatives, they're sure to push for decriminalization at the federal level. So, assuming it didn't overpay wildly for Dharma, Green Thumb planting its stake in Virginia is a smart move. It's just that it'll take some time to produce meaningful results.
Recent GTBIF News
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 11:05:11 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:31:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:30:20 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:28:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:26:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:25:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:23:13 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 10:04:41 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 08:06:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:32:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:32:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:32:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:31:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:31:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:31:38 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/28/2024 09:05:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:21:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:19:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:12:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:11:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:10:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:08:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:07:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/05/2023 09:04:35 PM
FEATURED POET and Luxshare Tech Expand Product Offerings for Artificial Intelligence Networks • Aug 1, 2024 9:28 AM
Management Discusses Financial Filings of Global Arena Holding Inc., for 10-K 2023 and 10-Q, 1st Quarter 2024 • GAHC • Aug 1, 2024 9:14 AM
VAYK Announces LOI to Acquire $1 Million Home Service Company to Support Airbnb Business • VAYK • Aug 1, 2024 9:00 AM
Duane Forrester Joins INDEXR as SVP of Search • MONI • Jul 31, 2024 11:46 AM
Lingerie Fighting Championships Help Fulfill Death-Bed Promise With First Major Motion Picture • BOTY • Jul 31, 2024 9:00 AM
Kona Gold Beverage Significantly Reduces Debt from Multiple Holders • KGKG • Jul 31, 2024 9:00 AM