RYTHM, Inc. (NASDAQ:RYM) saw its shares climb 23% after announcing changes to its trademark and recipe licensing agreements with an indirect wholly owned subsidiary of Green Thumb Industries Inc.
The updated agreements cover several of the company’s brand assets, including RYTHM, incredibles, Beboe, Dogwalkers, Doctor Solomon’s, &Shine, and Good Green. Beginning April 1, 2026, Green Thumb will pay RYTHM a fixed annual cash fee totaling $70 million, with the amount subject to yearly adjustments based on twice the Consumer Price Index escalator.
“These amendments create a framework that strengthens our licensing arrangement with Green Thumb over the long term and supports RYTHM’s Nasdaq listing,” said Ben Kovler, Chairman and Interim Chief Executive Officer of RYTHM, Inc.
Kovler also noted that the company has secured a stable and long-term revenue structure, which he said is rare within the THC sector. According to him, as regulatory and legal conditions continue to evolve, this structure provides both the business and investors with greater transparency and financial stability, helping position the company to enhance shareholder value.
The revised licensing framework replaces the previous model with a fixed-fee structure, offering RYTHM more predictable and consistent revenue from its portfolio of brands.