Jushi Set to Acquire Pennsylvania Grower
BOCA RATON, Fla., June 22, 2020 (GLOBE NEWSWIRE) -PRESS RELEASE- Jushi Holdings Inc., a multi-state cannabis and hemp operator, has reached an agreement to acquire 100% of the equity of Pennsylvania Medical Solutions LLC, a Pennsylvania grower-processor owned by Vireo Health International Inc.
PMS operates a 90,000 square-foot facility which will have approximately 45,000 square-feet of indoor cultivation space when construction is complete. PMS’ property can further accommodate an additional 25,000 square-feet of indoor cultivation bringing the total to 70,000. The company expects the facility to produce between 800 and 1,000 pounds of dried flower per month.
The proposed acquisition will solidify Jushi’s position in Pennsylvania by adding equity ownership of PMS, with its large-scale indoor cannabis cultivation and processing capabilities, to its other subsidiaries’ collective rights to operate up to 15 dispensaries.
“This acquisition allows Jushi to expand its presence in one of the most attractive medical cannabis markets in the country,” said Jim Cacioppo, chairman and chief executive officer of Jushi. “Upon completion Jushi will be able to provide high-quality, indoor flower and concentrates to our Pennsylvania patients who continue to experience constrained supply and high prices. Furthermore, we will be well-positioned to support an increase in demand and maintain the ability to further scale up the facility if required.”
Under the terms of the agreement, Jushi will pay Vireo $16.3 million in cash, a $3.8 million seller note and assume a $17 million facility associated with a long-term lease obligation. No equity will be issued in connection with this acquisition. Jushi intends to fund the cash portion of the agreement with the proceeds from the debt financing, which Jushi announced concurrently with this announcement. The parties anticipate closing the agreement by the end of August 2020.
As part of the agreement, at closing, Jushi will have 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 operate two medical marijuana dispensaries in Scranton and Bethlehem, with the right to operate one additional dispensary in the region.
The proposed acquisition is subject to certain closing conditions, including approvals from regulatory authorities.