Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its acquisition of Nevada-based NuLeaf, Inc. in a deal valued at $53.6 million. NuLeaf operates two high-performing adult use and medical retail dispensaries in the Las Vegas area and one in Lake Tahoe. NuLeaf also owns a third licensed retail dispensary located directly on the Las Vegas Strip that is expected to open in the second quarter. The company also has a 27,000 sq. ft. cultivation facility in Sparks, NV, and a 13,000 sq. ft. processing facility in Reno, NV.
“We are excited to announce the closing of our third acquisition in Nevada, a milestone accomplishment for our team,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi Holdings Inc. “The acquisition of NuLeaf sets the tone for our growth plans in the state as we continue to scale and strengthen our operations in this limited license market. With our newly established vertically integrated footprint in the state, we look to gain market share of our brands and further capitalize on the significant opportunity in this market, aided by NuLeaf’s premier retail, cultivation and manufacturing assets. We look forward to the immediate revenue and EBITDA contribution this acquisition will bring as we fully integrate NuLeaf into our business.”
This is the latest move by Jushi to seriously establish itself in the Nevada market, which is valued at $1 billion. The NuLeaf deal follows the recently closed Apothecarium Nevada2 acquisition. Jushi’s retail footprint is now four dispensaries, three of which are located in the tourist-friendly Las Vegas area. Jushi also sees the opportunity to sell its own branded products in these dispensaries as well.
Just a couple of weeks ago, Jushi reported its total revenue rose 104% in the fourth quarter to $65.9 million over last year and increased 22% sequentially. However, Cacioppo said the company was experiencing a slowdown in revenue as it began the year. No doubt the addition of NuLeaf will help bolster those revenue numbers.