Jushi Holdings Inc. Provides Update on Debt Financing
- Additional Binding Subscriptions Increased Debt Financing to US$17.425 Million;
- Closed on an Additional US$4.275 Million of Subscriptions for a Total of US$12.575 Million
BOCA RATON, Fla., July 13, 2020 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, today provided an update regarding its previously announced US$15.25 million debt financing. To date, Jushi has received cash proceeds of US$16.325 million and additional binding subscriptions, for a pro forma total issuance of US$17.425 million of 10% senior secured notes (“Notes”) and warrants to acquire subordinate voting share (the “Warrants” and collectively, the “Offering”). The Company also received non-binding indications of interest for up to an additional US$10 million of financing.
All Notes will mature on January 15, 2023 and will bear interest of 10.0% per annum payable in cash quarterly. Jushi’s obligations under the Notes are secured by the assets of Jushi and certain of its subsidiaries (subject to certain exclusions) and are also guaranteed by certain subsidiaries of the Company and rank pari passu with the currently outstanding 10% senior secured notes of the Company. In connection with the Offering, the purchasers of the Notes will also receive Warrants to acquire subordinate voting shares of the Company at 75% coverage with an expiry date of December 23, 2024, at an exercise price equal to US$1.25 (~CAD$1.70 as of 7/10/20). The Warrants contain a cash-less exercise (net settlement) option available 12 months after issuance.
Jushi’s Chairman & CEO Jim Cacioppo subscribed for US$1.5 million of the Notes with other insiders and management subscribing for US$3.475 million of the Notes.
As noted previously, Jushi intends to use the proceeds from the Offering to fund the cash portion of a previously announced Pennsylvania grower-processor permit holder transaction.
Furthermore, the Offering is expected to close on or before the date that the acquisition of the Pennsylvania grower-processor permit holder is completed. In connection with the Offering, the Company formed a special committee of independent directors of the board of directors of the Company (the “Special Committee”), comprised of Stephen Monroe and Peter Adderton, to set, review, negotiate and approve of the terms of the Offering. The Special Committee engaged AltaCorp Capital Inc. to provide its opinion that the terms of the Offering were fair, from a financial perspective, to the Company.
This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful.
About Jushi Holdings Inc.
We are a globally focused cannabis and hemp company led by an industry-leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis and hemp-derived assets through opportunistic acquisitions, distressed workouts and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis and hemp ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
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