Green Thumb Industries has entered the California market this month, launching its first store in the city of Pasadena on Wednesday.
Shares fell nearly 5% as Wall Street digested the news but the company’s CEO Ben Klover told CNBC that the drop created a buying opportunity for investors.
The Chicago-based cannabis producer’s founder and chief executive told CNBC that the dip in share price created an entry point for investors.
“This is a long-term game,” he said in a “Power Lunch” interview. “This stock price is just an opportunity for the buyers.”
With the Pasadena store, Green Thumb now operates 53 branded stores in 11 states. Essence is one of four retail brands, including Rise, under the company’s umbrella.
California is the biggest recreational cannabis market in the world and legal sales hit $4.4 billion last year, up 57% from receipts in 2019, according to data from Marijuana Business Daily.
Marijuana sales doubled in 2019 from the $1.4 billion sales figure recorded in 2018, the year the legal market opened in the Golden State.
Total sales in 2020 for Green Thumb saw a jump of 170% through September.
“What’s happening at the state level is governors and legislators … are all banging the table for jobs and tax revenue for legal cannabis markets in the U.S.,” said Klover. “We think the federal government is a laggard. They don’t move very fast, they’re not a forward indicator, and that’s OK.”