Green Thumb Industries (GTBIF -2.06%) made major investments in new infrastructure to grow, process, and sell cannabis in 2021. But in Q1 of 2022, the vertically integrated cannabis operator started spending less on such capital expenditures, signaling that its expenditures in some East Coast states are beginning to ramp down. With its entry into some adult-use markets delayed while those states draft regulations , Green Thumb will likely keep spending less on property, plant, and equipment in 2022, freeing up cash for anticipated expansions in 2023 in states just opening up to legal cannabis.
Spend money to make money
Green Thumb did a great job in 2021 predicting the adult-use tea leaves. New Jersey and New York are both a go, with New Jersey already starting sales and New York’s regulations blossoming.
In 2021, GTI spent a total of $225.3 million on large infrastructure investments in adult-use cannabis states like New Jersey and New York. The company opened new Rise dispensaries in Paramus , NJ, and Bloomfield, NJ, in 2021, giving it three dispensaries and a manufacturing facility in the state’s expected $2 billion market.
In New York, which is projected to have a $2.5 billion market, GTI invested in
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