– Increased 2022 Financial Projections Reflect Theraplant’s Upside Potential from Projected 2022 Commencement of Recreational Marijuana Sales in Connecticut –
– Company Also Provides Update on Theraplant Transaction –
AMITYVILLE, N.Y., Aug. 17, 2021 (GLOBE NEWSWIRE) — Greenrose Acquisition Corp. (OTC: GNRSU, GNRS, GNRSW) (“Greenrose” or the “Company”), a special purpose acquisition company targeting companies in the cannabis industry, announced that it has increased its full year 2022 financial projections for revenue and adjusted EBITDA, as stated in the revised investor presentation filed with the SEC on July 28th, 2021.
Greenrose’s expanded financial projections reflect Theraplant’s additional upside potential from Connecticut’s earlier-than-anticipated approval of recreational marijuana sales, which are anticipated to begin in mid-2022. The Company’s current full year 2022 financial projections, compared to the previous projections provided in the presentation filed by Greenrose on June 16th, 2021, are summarized below:
|Revenue||$230 million||$260 to $295 million|
|Adjusted EBITDA||$90 million||$110 to $135 million|
“Our increased full year 2022 financial projections reflect the strength of our platform, combined with the benefits of regulatory tailwinds within the initial states we plan to operate in,” said Mickey Harley, CEO of Greenrose. “The approval of recreational marijuana sales in Connecticut meaningfully expands Theraplant’s addressable market and came on an earlier timeline than we originally anticipated. Meanwhile, we remain well-positioned with True Harvest in Arizona as the statewide market continues to benefit from the launch of recreational cannabis sales earlier this year. Rounding out our platform, Shango and The Health Center also remain on track to meet their 2022 projections. As we continue to monitor the growth trajectories of our proposed platform assets and markets, we will remain focused on working to close our initial business combination and positioning ourselves for optimal execution on our stated growth objectives.”
Theraplant Transaction Update
In light of Theraplant’s revised projections, Greenrose on August 12, 2021 also announced that Greenrose and Theraplant amended the Agreement and Plan of Merger (“Amended Merger Agreement”) to increase aggregate consideration payable to Theraplant to $150 million, with $100 million dollars paid in cash and $50 million dollars paid in stock. The increase in consideration payable to Theraplant by Greenrose represents a $50 million increase from the consideration amount disclosed in the Company’s Form 8-K filed on March 18, 2021. Additionally, pursuant to the Amended Merger Agreement, Theraplant and the Company agreed to extend the timeline to complete the transaction to November 30, 2021.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute a solicitation of votes or proxies in connection with any meeting of the stockholders of Greenrose.
Imperial Capital, LLC is acting as capital markets advisor to Greenrose. Gateway Group is serving as communications advisor to Greenrose. Mackenzie Partners and Broadridge Financial Solutions are acting as proxy advisors to Greenrose in connection with its proxy solicitation efforts.