Why Financial Firm Jefferies Sees Value In Green Thumb-Boston Beer Merger
Green Thumb Industries (OTC: GTBIF), a prominent U.S. cannabis multi-state operator (MSO), is reportedly seeking a merger with Boston Beer Company. This move could allow GTI to list on a major exchange, leveraging Boston Beer’s legal status.
Additionally, it could facilitate GTI’s entry into the growing market for Hemp THC beverages, which are eroding alcohol sales.
What Happened: Merger Proposal
According to the Wall Street Journal, GTI sent a letter to Boston Beer on Sunday to discuss a potential merger. GTI has not commented on the reports, and Boston Beer has remained silent. This development follows reports of Japanese whisky maker Suntory being in early talks for a possible acquisition of Boston Beer, which Boston Beer denied. GTI‘s CEO claims a superior offer could be made compared to Suntory’s.
Financial Engineering And Market Sentiment
Jefferies reports that two Canadian cannabis operators and two U.S. MSOs have structured their businesses to list on major exchanges. They achieve this by listing legal assets and issuing non-voting shares for U.S. cannabis assets which are …