This Cannabis Company Is Buying Back $50 Million Worth of Its Shares: Here's Why That Matters
Cash burn, reverse stock splits, and consistent losses are three things investors have come to expect from cannabis companies. And lately, there's also been a lack of growth. But there is one company in this industry that appears to be an exception. Green Thumb Industries (OTC: GTBIF) is not only profitable, but is doing so well that it recently announced a surprise move: It will be buying back shares.
On Sept. 5, Green Thumb Industries said that its board had approved a $50 million share repurchase program to run over the next 12 months. "We believe instituting a share repurchase program is an appropriate tool for creating shareholder value without compromising our growth initiative," said Chief Executive Officer Ben Kovler.
It's important to note that Green Thumb technically doesn't have to buy back any shares, only that it's authorized to do so. But it's still an important development, as it signifies the board's confidence in the company's financials, which look strong.
Source Fool.com
