Use this search box to find articles that have run in our newspapers over the last several years.
Date: 1/3/2024
Theory Wellness, a leader in Massachusetts’ recreational and medicinal cannabis market, will embark on a significant transformation, becoming the first cannabis business in the state to transition to an Employee Stock Ownership Plan.
The change recently took effect and represents a significant shift in the region’s cannabis industry.
“Transitioning to an employee-owned company is the closing of one chapter and the beginning of a new one. We’re excited to bring our people, the heart and soul of our company, into a future where they can meaningfully benefit,” said Nick Friedman, Theory Wellness co-founder.
Thomas Winstanley, the chief marketing officer for Theory Wellness, said 100% of the company’s Massachusetts operations will transition to employee-owned in the form of shares.”
The shift to an ESOP is a departure from the norm in the cannabis industry, where such employee ownership models are rare. However, Theory Wellness’ executive and management team will remain intact.
Founded in 2015 by entrepreneurs Nick Friedman and Brandon Pollack, Theory Wellness began with two stores in Massachusetts. Since then, it has expanded its operations to Maine, Vermont and Ohio.
“What started as just two stores has now blossomed into multiple states,” Winstanley noted, highlighting the company’s rapid growth and adoption in the cannabis market.
The ESOP transition represents a trend toward more inclusive workplace models. Theory Wellness creates a more direct link between employee efforts and the company’s success by allowing employees to become shareholders.
“It’s not like you’re selling to a massive organization that changes your name, restructures and brings on many people,” Winstanley explained. The structure of the ESOP ensures that the company’s core values and management remain while offering a stake to the workers.
Winstanley clarified how the shares would be allocated among employees. The system is designed to be equitable, considering various factors like tenure and position, ensuring a fair distribution of benefits.
Employees have reacted positively to this news. “It’s nice to be a part of a growing company and have a stake in our future success. Now, our work doesn’t just benefit the company but also benefits us on a personal level,” said employee Eric Bird.
Winstanley added that the new structure boosts morale and enhances retention and engagement, as employees have a say in the company’s future. “The reception has been overwhelmingly positive,” he said.
The ESOP’s benefit will be extended to all employees, including those in other states. “All of our employees will be able to participate,” Winstanley confirmed. The inclusive approach ensures that employees, regardless of location, are part of the company’s growth and success.
Reflecting on the cultural shift within Theory Wellness, Winstanley said, “My team realizes that every time they send an email on behalf of the company, they’re also sending it on behalf of themselves.”
Winstanley was optimistic about Theory Wellness’s future and potential influence on the cannabis industry. “We’re excited to see how the future of Theory looks in this new chapter,” he said, indicating a hopeful outlook for the company and its employees.
Theory Wellness’s transition to an ESOP reflects the changing landscape in corporate culture, particularly in the cannabis industry.