Acceleration of warrants results in approximately USD$11 million in gross proceeds to the Company
BOCA RATON, Fla., Jan. 22, 2021 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, provided an update on its previously announced acceleration of warrants expiry date issued in conjunction with the March 2019 private placement (the “Acceleration”). The Company has completed the Acceleration which resulted in the issuance of approximately 3.7 million additional subordinate voting shares and cash proceeds of approximately USD$11 million to the Company. As of today, the Company had approximately $133 million in cash and short-term investments and approximately $89 million in total debt, excluding leases and property, plant and equipment financing obligations.
We are grateful for the considerable support we have received from our shareholders following our recent warrant accelerations. As we enter 2021, we will continue to execute on our growth strategy through thoughtful capital deployment in attractive limited license markets.
Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi
This targeted strategy will enable us to expand our footprint in key locations where we can leverage our best in class retail experiences, high quality products, and exceptional customer service to capture significant market share and deliver strong value for our shareholders.
On December 24, 2020, the Company announced it exercised its right to accelerate the expiry date of subordinate voting share purchase warrants (the “Warrants”) issued to participants in the Company’s previously-announced private placement offerings, which closed in March 2019 (the “Offering”). Participants had thirty days from the date of notice of the Acceleration to exercise their Warrants, and as of January 21, 2021, all eligible participants exercised their Warrants.
Each Warrant issued in conjunction with the Offering entitled the holder to purchase one subordinate voting share in the capital of Jushi for a period of 24 months from June 10, 2019 (i.e. June 10, 2021) at an exercise price of USD$3.00 per share, subject to adjustment in certain events. Jushi retained the right to require the acceleration of the expiry date of these Warrants if the Company’s thirty-trading-day volume-weighted-average-price (“VWAP”) on the Canadian Securities Exchange (CSE) exceeded USD$4.00 (“Accelerated Expiry Date”). This was achieved during the trading period from November 13, 2020 through December 24, 2020.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry-leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis 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 ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.