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Jushi Holdings Inc. Announces Upsizing and Closing of US$47 Million Debt Financing
Total financing is upsized to approximately US$47 million as a result of participation by new investors, additional existing Jushi shareholders and exchanged debt
BOCA RATON, Fla., Jan. 31, 2020 /CNW/ — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, is pleased to announce the receipt of $35.65 million in proceeds and $9.56m of exchanged debt in connection with the Company’s previously announced debt financing.
We are pleased with the upsizing of our financing providing working capital that will allow Jushi to continue making progress on its growth objectives and expansion efforts into 2020 and beyond. This capital will support our continued investment in each territory we are currently operating in, positioning Jushi to achieve US$200 to $250 million in revenue in 2021.
Jim Cacioppo, Chairman and CEO of Jushi Holdings Inc.
Investors were given two financing structures. The first structure was a senior secured promissory notes (“Warrant Notes”) that will mature on January 15, 2023, will bear interest at 10.0% per annum, payable in cash quarterly, and are issued with warrants (“Warrants”) to acquire Class B Subordinate Voting Shares of the Company at 75% coverage. The Warrants have an expiration date of December 23, 2024, and an exercise price of ~US$1.58 (~CAD$2.08 as of December 23, 2019). The second structure was original issue discount senior secured promissory notes (“OID Notes”) maturing on January 15, 2023. The OID Notes will bear interest at 10.0% per annum, payable in cash quarterly. The combined annual yield on the OID Notes totals 17%. In addition to the maturity dates, both structures have the same key terms. The Company’s obligations under both the Warrant Notes and the OID Notes are secured by the assets of the Company and certain of its Subsidiaries (subject to certain exclusions) and are guaranteed by certain Subsidiaries.
To date, Jushi has received cash proceeds of US$35.65m for the debt financing. Additionally, US$9.56m of debt assumed in Jushi Inc’s acquisition of TGS Illinois Holdings, Inc. has been exchanged into the Warrant Notes with a slightly different redemption right (subject to an unrelated contingency). Including this exchanged debt, the total debt issued in Jushi’s debt financing is approximately US$47 million.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be 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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