Jushi Holdings Inc. To Acquire Its First Operating Adult-Use Location In California Through The Acquisition Of A San Diego Dispensary
The San Diego dispensary is strategically located off the I-8 Freeway with the ability to offer delivery in San Diego and neighboring cities
BOCA RATON, Fla., July 4, 2019 /CNW/ — Jushi Holdings Inc. (“Jushi” or the “Company”)(NEO: JUSH.B), a globally-focused, multi-state cannabis and hemp operator, today announced it has signed a definitive agreement to acquire its first operational adult-use and medicinal dispensary in San Diego.
The California market is a core part of our growth strategy with a very sizable addressable market that, to put in perspective, is larger than Canada.
Jushi CEO and Chairman, Jim Cacioppo
Jim continued, San Diego, specifically, is a market that we have strategically chosen to establish our footprint in due to the limited nature of the licenses and restrictive zoning. Our partners in San Diego have built a fantastic store with a loyal customer base, which offers consumers a wide variety of high-quality products, is easily accessible off the highway and offers a well-located springboard for future delivery to San Diego and neighboring cities. We view this partnership as one of many sought by Jushi throughout California and, together with previously announced transactions, pending applications, and future expansion in the state, we look forward to continued announcements in due course.
California has nearly 40 million residents and the longest-running medical cannabis program in the country. San Diego is the second largest city in California with a population of approximately 1.4 million and over 35 million visitors each year. San Diego is also a limited license market with a maximum of 36 total retail cannabis licenses divided among 9 council districts. To date, 19 retail cannabis licenses have been issued in the city, 17 of which are operational.
Jushi has signed a definitive agreement to purchase seventy-five percent (75%) equity and voting interest in the San Diego dispensary, subject to working capital and other customary adjustments. The purchase price is approximately US$12 million, of which 50% is paid in cash and 50% is paid by way of issuance of certain 8% secured notes (the “Notes”) to the sellers maturing after 18 months, and convertible at the option of the holders on or prior to the maturity date into Subordinate Voting Shares of the Company (the “Shares”), at a conversion price based on a specified historical volume weighted average trading price of the Shares on the NEO exchange, subject to a minimum of US$2.30 and a maximum of US$2.875 per Share. The Notes will be issued subject to certain escrow provisions. Closing of the transaction is subject to regulatory and other customary closing conditions and is scheduled to be completed in the third or fourth quarter of 2019.
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 work-outs 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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