For Illinois-based cannabis company Green Thumb Industries, the early bird gets the worm ー or in this case, a first stab at a still-young market. It's a business strategy that has reaped some real results for Green Thumb Industries, and one that CEO Ben Kovler says informed its recent step into New York state.
"New York is one of the most important states in the country, 20 million people, and the program is early. We're OK being early. We've done that in markets like Illinois and Ohio that have been slower out of the gate and then mature over time," Kovler told Cheddar on Thursday. "We think being one of only 10 licensed operators in the state of New York to cultivate, manufacture, and retail the product legally, under the current medical program is an unbelievable privilege and an important step for us. And that gives us a foothold position in the tri-state area: New York, New Jersey, and Connecticut."
His comments come on the heels of second quarter earnings for GTI, and an announcement the company would acquire New York-based Fiorello Pharmaceuticals for close to $60 million. New York has a notoriously restrictive medical cannabis market that served 106,050 registered patients as of August. Only 10 licensed cannabis producers are permitted in the state, and they are required to be vertically integrated and to stick to a limited variety of cannabis form factors, excluding flower.
Despite the restrictions, New York legislators have been pushing to legalize adult-use cannabis for quite some time. Two legalization efforts failed earlier this year, but many experts anticipate the state will go recreational in 2020. Just like in its home state of Illinois, where GTI has been operating since 2015 and is well-positioned for January 1 when recreational sales go online, in New York and elsewhere it's all about the long game.
"Overall, broadly, on this product, we see a tidal wave of demand. It starts in the medical world, it moves onto wellness ー and this is a consumer-packaged goods product. So being early, ahead of that curve in order to create the product, grow the brands, and educate the consumers is something we are really focused on," Kovler said.
Central to GTI's charge to gain brand recognition with consumers nationwide and deepen its push into wellness-focused consumer packaged goods, is the spread of its Rise-branded dispensaries. Kovler said the company has opened about 13 stores this year, and plans for a total of 15 to 20 by year's end.
"We've opened in Florida, Ohio, Pennsylvania. These are brand new experiences for, often, medical patients who have never been to a store to buy and educate themselves on cannabis. We are trying to create a welcome environment, that's connected to the community and that elevates the retail experience of shopping for cannabis," he said.
For the second quarter of fiscal 2019, GTI reported a widening net loss of $22.2 million on $44.7 million in revenue ー that's 228 percent higher than the $13.6 million GTI reported last year. Despite its losses, GTI did report positive adjusted operating EBITDA of $5 million. GTI, which trades over the counter in the U.S., surged more than 1 percent on Thursday after reporting earnings.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
