Jushi Completes Acquisition of Pennsylvania Medical Solutions
BOCA RATON, Fla., Aug. 11, 2020 (GLOBE NEWSWIRE) -PRESS RELEASE- Jushi Holdings Inc., a multi-state cannabis and hemp operator, announced the closing of a previously announced agreement to acquire 100% of the equity of Pennsylvania Medical Solutions, LLC (PAMS), a Pennsylvania grower-processor previously owned by a subsidiary of Vireo Health International, Inc.
Through this acquisition, Jushi adds PAMS and its 90,000 square-foot cannabis cultivation and processing facility, enabling efficient wholesale distribution to the 89 dispensaries currently operating across the Commonwealth, including the company’s eight operational BEYOND/HELLO dispensaries. The facility is currently being upgraded to increase the total amount of high-quality, indoor cultivation area to approximately 45,000 square-feet with the property having the capacity to further expand the indoor cultivation by an additional 25,000 square-feet bringing the total to 70,000 square-feet.
« We are thrilled to close this acquisition ahead of our original schedule. The acquisition will allow us to provide high-quality, indoor-grown dried flower and concentrates products to the Commonwealth’s patients, who continue to experience constrained supply and high prices, » said Jim Cacioppo, Chairman and Chief Executive Officer of Jushi. “With our successful recent financing, we are well capitalized to optimize the Facility’s production and continue to build-out our Pennsylvania retail footprint. Jushi, through its subsidiaries, has the collective rights to operate up to 15 dispensaries.”
Upon closing, Jushi paid Vireo US $16.3 million in cash, a US $3.8 million seller note, and assumed a US $17 million facility associated with a long-term lease obligation. No equity was issued in connection with this acquisition. Jushi funded the cash portion of the Agreement with the proceeds from the debt financing, which Jushi announced on June 22 and July 31, 2020. Further to our July 31 announcement, approximately US$30.3 million in cash proceeds have been received and have been released from escrow. Navy Capital Green Management, LLC led the debt financing round with an US$11.5 million investment.
As part of the Agreement, upon closing Jushi received an assignable purchase option to acquire 100% of the equity of Pennsylvania Dispensary Solutions, LLC, a Pennsylvania medical marijuana dispensary permittee in the Commonwealth’s Northeast region. PADS currently operates two medical marijuana dispensaries in Scranton and Bethlehem, with the right to operate one additional dispensary in the region. The option expires 18 months from closing, and is subject to certain closing conditions, including approvals from all applicable regulatory authorities.
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