Chicago-based marijuana multistate operator Green Thumb Industries wants to raise about $150 million through the sale of 10 million shares of stock, according to a regulatory filing made with the U.S. Securities and Exchange Commission on Friday.
Green Thumb said in its prospectus that it would use the proceeds to increase its capitalization and financial flexibility, as well as bankroll possible acquisitions and investments.
The offering is subject to a number of conditions, including review by the SEC. It generally takes four to six months for such a process to be completed.
The sale involves subordinate voting shares, which are listed on the over-the-counter market under the symbol GTBIF.
Those shares closed at $14.01 on Friday, down 2%. Green Thumb set the maximum price for its offering at $15.065 a share.
The company’s subordinate voting shares also sell on the Canadian Securities Exchange under the symbol GTII.
Companies filing S-1 registration statements must list all the risk factors of such an offering.
Green Thumb’s goes on for pages, but includes that its senior executives hold a “significant majority” of the company’s voting power through super voting shares.
While holders of subordinate voting shares are entitled to one vote per share, super voting shareholders are entitled to 1,000 votes per share, thus giving Green Thumb’s senior executives control of the company.
There also is a significant dilution of the value of the subordinate voting shares upon completion of the offering.
The prospectus states that Green Thumb may sell the subordinate voting shares directly to “one or more purchasers.”