Theory Wellness has become the first employee-owned cannabis company in Massachusetts and the largest in the industry.

The company, which has multiple locations in western Massachusetts, announced Thursday they are transitioning its ownership entirely over to its employees, in what is known as an employee stock ownership plan.

Co-founders Nick Friedman and Brandon Pollock opened Theory Wellness in 2015. Since then, it's grown to include four dispensaries, production and cultivation facilities, and more than 200 employees.

The company says a lot of their success is because of the employees, and this is a way to honor their work.

“Based on the time that you’re with the company and stay with the company, you will be issued shares,” said chief marketing officer Thomas Winstanley. “Those shares will invest over time based on the success of the company in the long term, and then that becomes available funds for employees after certain amount of time.

“And as time goes on as the company succeeds, those become more material and realize for our employees, and so it becomes a really meaningful way to help build and reward the folks who have been already doing this for so long.”

Theory says the change in ownership is not expected to disrupt the company's day-to-day operations.