RYTHM, Inc. Announces Amendments to License Agreements with Green Thumb Industries
Rhea-AI Summary
RYTHM, Inc. (Nasdaq: RYM) amended trademark and recipe license agreements with an indirect wholly-owned subsidiary of Green Thumb Industries effective April 1, 2026. Under the amendments, Green Thumb will pay RYTHM an aggregate fixed annual cash fee of $70 million, with annual increases equal to two times a CPI-based escalator.
Management said the changes establish predictable, long-term revenue that supports RYTHM's Nasdaq listing and provides clarity and stability for shareholders.
Positive
- Fixed annual cash fee of $70 million
- CPI-based escalator set at two times annual adjustment
- Effective date of April 1, 2026 provides immediate revenue certainty
Negative
- None.
News Market Reaction – RYM
On the day this news was published, RYM gained 63.93%, reflecting a significant positive market reaction. Argus tracked a peak move of +54.4% during that session. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $26M to the company's valuation, bringing the market cap to $65.98M at that time. Trading volume was exceptionally heavy at 42.4x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
RYM gained 4.57% while several higher-affinity peers like AGFY (+4.71%) and MTW (+1.39%) were also positive, but no peers appeared in the momentum scanner, indicating a stock-specific move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 03 | Q4 2025 earnings | Neutral | +2.0% | Strong sequential revenue and high-margin licensing offset by sizable impairment-driven loss. |
| Jan 27 | THC arena deal | Positive | +8.5% | Multi-year Señorita partnership making THC beverages available at Chicago’s United Center. |
| Nov 07 | Q3 2025 earnings | Neutral | -3.7% | Revenue growth and new IP acquisitions alongside continued operating losses and dilution overhang. |
Recent positive commercial and earnings updates have generally seen aligned, modestly positive price reactions, with one earnings-related divergence.
Over the last few quarters, RYTHM reported rapid revenue growth, with Q3 2025 revenue from continuing operations of $4.0 million and Q4 2025 revenue of $10.7 million, alongside operating losses and an $8.5 million impairment. Strategic moves included acquiring brand IP, entering wide distribution, and securing a United Center beverage partnership that prompted an 8.47% move on 2026-01-27. Today’s licensing amendment further emphasizes monetizing brand IP through predictable licensing fees.
Market Pulse Summary
The stock surged +63.9% in the session following this news. A strong positive reaction aligns with RYTHM’s history of responding well to commercialization milestones, such as the 8.47% move on the United Center beverage partnership. Locking in a fixed annual fee of $70 million from Green Thumb could reinforce the market’s view of predictable licensing revenue. Investors would still need to weigh this against prior operating losses and execution risk in scaling THC brands.
Key Terms
consumer price index financial
AI-generated analysis. Not financial advice.
ROLLING MEADOWS, Ill., April 01, 2026 (GLOBE NEWSWIRE) -- RYTHM, Inc. (Nasdaq: RYM) (“RYTHM” or the “Company”), America’s THC Company, today announced amendments to its existing trademark and recipe license agreements with an indirect wholly-owned subsidiary of Green Thumb Industries Inc. (“Green Thumb”).
RYTHM and Green Thumb have amended their existing trademark and recipe license agreements for the use of brand intellectual property which includes RYTHM, incredibles, Beboe, Dogwalkers, Doctor Solomon’s, &Shine, and Good Green. Effective April 1, 2026, Green Thumb will pay RYTHM an aggregate fixed annual cash fee of
“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. “We have established predictable, long-term revenue in a way that is virtually unmatched in the THC space. As the regulatory and legal landscapes evolve, this structure provides our business and investors with clarity and stability that positions us well to maximize value for our shareholders.”
About RYTHM, Inc.
RYTHM, Inc.’s portfolio of THC brands includes the most recognized and trusted names in the cannabis and hemp industries, including RYTHM, incredibles, Dogwalkers, Beboe, Señorita THC Margaritas, &Shine, Doctor Solomon’s, and Good Green. With products available in thousands of physical locations and online, supported by an iconic lineup of brands rooted in quality and safety, RYTHM, Inc. is cementing its position as America’s THC Company. Through a focus on innovation, the Company is continually shaping THC experiences to meet the evolving preferences of consumers across the country. Learn more and explore the full brand portfolio at www.RYTHMinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning RYTHM, Inc. and other matters. All statements that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the expected benefits of the license agreement amendments, and the Company’s compliance with Nasdaq listing standards. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” “maintain” or “continue” or the negative of these terms or other similar expressions. These statements involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied, including those described under 'Risk Factors' in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (“SEC”), which can be obtained on the SEC website at www.sec.gov, including risks related to federal and state cannabis regulation, the Company's relationship with Green Thumb, and general economic conditions. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
Investor Contact
IR@RYTHMinc.com
Media Contact
Media@RYTHMinc.com
FAQ
What did RYTHM (RYM) announce about its licensing deal with Green Thumb on April 1, 2026?
How much will Green Thumb pay RYTHM (RYM) annually under the amended agreements?
Which RYTHM brands are covered by the amended license agreements with Green Thumb?
When do the amended licensing terms between RYTHM (RYM) and Green Thumb take effect?
