Jushi Archives - Green Market Report

StaffOctober 18, 2021
employment-people-services.jpg?fit=1200%2C800&ssl=1

5min7310

Two leading cannabis companies have made major changes in the C-suite on Monday morning.

HEXO

The biggest move came from HEXO Corp.  (TSX: HEXO)(NASDAQ: HEXO) which announced that its CEO and Co-Founder Sebastien St-Louis was leaving immediately and that the company was engaging in a structural reorganization. In addition to the CEO, HEXO said that its Chief Operating Officer, Donald Courtney was also out. The Special Committee of the Board for Succession said it was in advanced discussions with a preferred CEO candidate and expected to make an announcement soon. Courtney will remain as COO until a suitable replacement is named.

The shakeup comes not long after Hexo reported that its third-quarter fiscal 2021 that ended in April, showed total revenue sliding by $10.2 million sequentially to $22.6 million. Since then, the company moved its shares to trade on the NASDAQ and closed on a $144 million offering. The company also closed two acquisitions 48North and Redecan.

“Building HEXO from the ground-up to become number one in Canada has been the highlight of my career,” said Sebastien St-Louis. “Without question, HEXO’s future is bright – I am so proud of the team we established, the brands we launched, and the loyalty our customers have shown us. As a significant shareholder, I look forward to the company’s next exciting stage of growth.”

Hexo said in a statement that its next leader would be well-positioned to integrate its recent acquisitions and “leverage the company’s lean production capabilities, solid brands, and robust product offering to lead HEXO through its next phase of strategic evolution.”

“On behalf of the entire organization, I would like to thank Sebastien for his tremendous impact on the Canadian cannabis industry. Through his years of dedication, he has helped build HEXO into a market leader in Canada,” said Dr. Michael Munzar, Chair of the Board. “The Board has established a Special Committee for Succession to identify a new CEO with the experience to defend HEXO’s position as a market leader in Canada and secure our place as a top-three global cannabis company.”

Jushi

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced the appointment of Edward (“Ed”) Kremer as its new Chief Financial Officer. Kremer brings over 20 years of financial leadership experience across a wide variety of industries, including technology, fashion, manufacturing, wholesale distribution, licensing, and retail. Jushi also announced that Kimberly Bambach has stepped down from her role as CFO effective immediately, but will remain with the company in a support role through December 1, 2021. Kremer most recently served as Chief Operating and Restructuring Officer of Le Tote and Lord & Taylor, overseeing the organization’s M&A and restructuring efforts.


StaffOctober 8, 2021
shutterstock_734570197.jpg?fit=960%2C720&ssl=1

15min17070

Green Market Report asked some of the top technology leaders in the cannabis industry for their thoughts on how tech is changing the cannabis world. Here’s what we learned:

Simplifya Co-Founder & Chief Executive Officer Marion Mariathasan

   “Technology in every industry has enabled advancement to happen faster, and the cannabis industry is no different. Due to the fragmented regulatory environment, we knew remaining compliant would be a real challenge for businesses, but one that could be addressed through the creation of advanced technologies. We set out to take what was previously an archaic way of approaching compliance and developed software that would help cannabis entrepreneurs save time and money, drive efficiencies and create new opportunities. Beyond owners and operators, we also see technologies playing a vital role in how governments, regulatory bodies, insurers, cannabis-related banking and financial institutions also remain compliant under FinCEN Cannabis Banking Guidance. 

Whether it’s POS, data, commerce, social networks or compliance, technology continues to allow the industry to solve some of its most challenging problems while accelerating growth at a rapid rate. As Simplifya enters the multi-million dollar banking, financial and payment-related services sector, we plan to debut new software and advanced technologies that automates and simplifies mandated complex processes necessary to keep the industry moving ahead in a compliant way.” 

Marion Mariathasan is the CEO of Simplifya, the cannabis industry’s leading regulatory and operational compliance software platform. The company’s suite of products takes the guesswork out of confusing and continually changing state and local regulations. Featuring SOPs, badge tracking, document storage, tailored reporting and employee accountability features, the company’s Custom Audit software reduces the time clients spend on compliance by up to 45 percent. 

Marion is also a serial entrepreneur who has founded or advised numerous startups. He is an investor in 22 domestic and international companies, four of which he serves as a board member: Ceylon Solutions, a cannabis and non-cannabis software development company; Leafwire, the largest cannabis social network; ilios, a relationship app that matches users based on characteristics derived from astrology and numerology algorithms; and Simplifya. Marion is a regular guest speaker at events such as Denver Start-Up Week, Colorado University’s program on social entrepreneurship, and the United Nations Global Accelerator Initiative. 

 


Jushi Holdings Inc. Chief Creative Director Andreas “Dre” Neumann

“In the cannabis sector, digital consumers are in the driver’s seat. We believe technologies will continue to play a critical role, and that by taking the time to implement research, data and digital technologies, we have a competitive advantage. By constantly studying trends data, we foresaw that the digital and physical retail convergence would accelerate with the rapid growth of home delivery and express channels. Early on we were focused on ways to remove friction, build trust, and fine tune the entire customer experience. We use research data and technology-based omnichannel strategies to seamlessly serve the needs of the widest range of customers, and that really goes to the core of our ethos of improving peoples’ lives.

At a higher level, we’ve also integrated our data sources and spent time building out a custom data warehouse. This has not only helped us break down information silos, but has also allowed us to understand the business and our customers much more holistically. We plan to keep evolving with new technologies and programs that drive efficiencies in our retail experiences and operations. I’ve always been a big advocate for technological solutions — none of this would be possible without it — so for us, tech will be a priority for the future of Jushi and instrumental in defining the entire cannabis sector.”

In his role at Jushi, Dre and his creative team are charged with leading Jushi’s creative, marketing and communications efforts as well as ensuring the company’s successful entrance into e-commerce, cutting-edge digital user experiences and his efforts have already brought a tremendous amount of added value to the company and its shareowners. 

Dre is a serial entrepreneur who has founded numerous successful creative and technology companies and is a disruptive thinker, who before joining Jushi, served as the creative director and head of content for Idean, a leading global design agency that creates powerful digital experiences and uses design as a strategic tool to transform companies. He founded a partnership with British multinational communications and advertising agency network with 114 offices in 76 countries and over 6,500 staff, Saatchi & Saatchi UK, where he implemented creative strategies such as launching a branded content unit called Gum in an effort to reach more young people, who are increasingly tuning out traditional advertising. 

In addition to being a known and respected leader in the creative and technology arenas, Dre is known for his photography and work with artists such as Queens of the Stone Age, Iggy Pop, Foo Fighters, ZZ Top, Lenny Kravitz, and many others. He has also been cited as one of the world’s top rock photographers and will be featured in an upcoming documentary on Amazon scheduled to premiere in early 2021.

 

Navin Anand, Chief Technology Officer at springbig

“The cannabis industry is adopting native and cloud technologies at an ever increasing rate. Computing power has increased exponentially (at an affordable cost), so we all have supercomputers on hand, which helps development teams tackle AI/ML problems, predictive analysis, user segmentation, early fraud detection and more. Technology also has added tremendous value in the form of agri-tech, cloud evolution, and data science for improving this industry as a whole.

At springbig, we are leveraging technology to push the limits and capture trends that help our merchants achieve goals above and beyond 100%. The spingbig platform provides the ability for our partners to be in constant contact with end users. We have other offerings that provide numerous opportunities for improvement of user experience, instore, e-commerce and omni.”

Navin is the CTO of springbig, a leading provider in customer loyalty and text message communications solutions for cannabis retailers and cannabis brands. Founded in 2017, springbig offers a single source of truth CRM that becomes the database of record for in-store and online customers that captures key purchasing and behavioral data and seamlessly integrates with existing dispensary POS and eCommerce systems. Navin has over 15 years experience in software engineering including leading a team of 100 engineers at Verifone, one of the world’s largest multinational payment processing and POS solution providers. In his time at Verifone, Navin crafted solutions for blue-chip brands including McDonalds, YUM Brands, and Visa.

Navin is recognized as a data-driven leader and problem solver who is able to streamline the software engineering delivery and QA process through advanced systems automation and project management, reducing time to delivery and aligning various IT sub-departments into a common system that speak the same language.

 

 

 

Cathy Corby Iannuzzelli, Co-Founder and Chief Payments Officer at KindTap

“As a fintech company in the cannabis space, we can wholeheartedly say that technology is shaping the future of the industry with the consumer at the forefront of the conversation. From convenience to compliance and now even our credit payment option with loyalty points, advances in technology are bringing the consumer the best experience possible while still keeping all the backend bells & whistles legally sound.”

Cathy Corby Iannuzzelli is a payments executive with extensive experience in prepaid, debit, credit, and emerging payments and broad and deep knowledge of issuing and acquiring sides of the market. In 2019, Cathy joined KindTap, a fintech company with a team that was focused on the same cannabis payments problem she spotted a few years back. Together in September 2021, they formally launched KindTap and are the first company to bring a credit payment option to the cannabis industry. 

KindTap launched first to the Massachusetts market and will hit multiple US markets, including Florida, Maine, and New York by the end of 2021, bringing consumers immediate, revolving credit lines for upfront cannabis purchases and allowing merchants to seamlessly accept digital credit payments.  About 3 years ago while working for a client in Denver, Cathy became aware of how broken payments were in cannabis. Broken isn’t even the right word – payments simply didn’t exist in the cannabis market. Cathy’s pioneering spirit kicked-in and she refocused her consulting to the cannabis segment. 

 

 

 

Socrates Rosenfeld, Co-founder & CEO of Jane Technologies

“Our goal at Jane has always been to provide value for the entire ecosystem; we want customers to make informed purchasing decisions, and we want sellers to succeed. As the largest e-commerce platform in North American cannabis, the digitization of the industry has allowed us to keep the industry in line with the mainstream, allowing shopping for cannabis to be as accessible as shopping online for everything else in the world, all while ensuring an even playing field for brands and dispensaries.”

Socrates Rosenfeld is the Co-Founder and CEO of Jane Technologies. Socrates began using cannabis as a way to re-acclimate to civilian life upon return from active duty, but found himself questioning the origins of cannabis since it was illegal at the time. Fast forward to today and Socrates is now the founder and CEO of Jane Technologies- the e-commerce solution for legal cannabis retailers and brands. He holds a B.S. in Leadership & Management Studies from the United States Military Academy at West Point Academy and an MBA from the MIT Sloan School of Management. He is a U.S. Army Veteran and previously served as a commander of an Apache helicopter company. 

 


StaffSeptember 13, 2021
Natures.jpg?fit=960%2C711&ssl=1

4min5180

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its previously announced acquisition of Massachusetts-based Nature’s Remedy in a deal valued at $91.2 million. Jushi also noted that the deal was revised resulting in 4.3 million fewer shares issued to Nature’s Remedy. However, Jushi did pay an additional $2.9 million in cash to acquire excess inventory worth $17.5 to $22.5 million at prevailing wholesale prices.

“We are excited to officially enter the Massachusetts market, adding Nature’s Remedy, a vertically integrated business operating high-quality, well-managed assets” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “With its strong, defensible retail position and a scalable cultivation footprint, Nature’s Remedy offers significant opportunities for us to expand and grow our presence in this rapidly maturing adult-use market. I look forward to working with our new colleagues to introduce our complete line of industry-leading brands and products into the wholesale market and at Nature’s Remedy’s retail stores.”

Nature’s Remedy

Nature’s Remedy currently operates two retail dispensaries, in Millbury, MA and Tyngsborough, MA, and a 50,000 sq. ft. cultivation and production facility in Lakeville, MA, with approximately 22,000 sq. ft. of high-quality indoor flower canopy and state-of-the-art extraction and manufacturing capabilities. The company expects to execute on the significant opportunity to expand Nature’s Remedy’s wholesale revenue in the fourth quarter, driven by additional cultivation capacity as well as the planned resale of excess inventory at the Lakeville Facility.

Deal Terms

Jushi acquired Nature’s Remedy for an upfront payment of $91.2 million, which included $40.0 million in cash, approximately $34.7 million in stock, an $11.5 million unsecured three-year note and a $5.0 million unsecured five-year note. Jushi has also agreed to issue up to an additional $5.0 million in stock and a $5 million increase to the principal balance of the 3-Year Note upon the occurrence or non-occurrence of certain conditions after the closing date, bringing the total potential consideration for the acquisition paid by the company to $101.2 million. The revised purchase price represents a multiple of 2.7 to 3.0x Nature’s Remedy’s expected full-year 2022 EBITDA of US$34 to US$38 million.


StaffAugust 25, 2021
beyond.jpg?fit=960%2C540&ssl=1

4min8490

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) released its financial results for the second quarter of 2021 ending June 30, 2021, with total revenue increasing 219% to $47.7 million over last year. This was a sequential increase of 14.6%. year. Jushi also reported a net income of $4.8 million, which was a $31.6 million sequential improvement. The company said the increase was primarily driven by an increase in revenue, gross profit, and a gain on fair value derivative liabilities.

Jushi also gave full-year 2022 guidance for revenues to be between $375 to $425 million and Adjusted EBITDA to be between $110 to $130 million on an IFRS basis. As of June 30, 2021, Jushi had $126.8 million of cash and short-term investments.

“I’m very pleased with our performance in the second quarter; we achieved strong sequential revenue growth, industry leading year-over-year revenue growth, and maintained Adjusted EBITDA profitability, while continuing to invest in our strategic growth initiatives,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With our strong balance sheet we are well positioned to execute on our plans, which includes expanding our national retail footprint as well as building out our cultivation and processing assets to support increased demand from both patients and consumers for our high-quality products.”

Jushi said that the net income was $4.8 million, or $0.03 per basic share and a net loss of $(0.09) per diluted share, compared to a net loss of $(26.8) million, or $(0.18) per diluted share in Q1 2021. “The net loss of $(0.09) per diluted share in Q2 2021 was primarily due to the dilutive effects of the derivative warrants as accounted for under IFRS.” The company said that the $31.6 million improvements in net income in the second quarter were primarily driven by the gain on fair value derivative liabilities of $21.1 million.

Mr. Cacioppo commented, “Looking ahead to the remainder of the year, we expect to open an additional seven BEYOND/HELLO dispensaries, add two dispensaries and a grower-processor facility in Massachusetts through the acquisition of Nature’s Remedy of Massachusetts and continue to build out our Pennsylvania and Virginia grower-processor facilities, which will fuel our business as we head into 2022.”

Mr. Cacioppo added, “Assuming our Massachusetts acquisition closes late in the third quarter, we are revising our full year 2021 revenue guidance range from $205 to $255 million to $220 to $230 million and our 2021 Adjusted EBITDA guidance range from approximately $40 to $50 million to $32 to $37 million. The reduction in Adjusted EBITDA guidance relates to (1) the Virginia market developing slower than we initially forecast, mostly due to flower launching in September versus our assumption in July, the Company pivoting to a larger store format and the timing and regulations associated with the adult use program, which resulted in new store openings being delayed; (2) reducing the flower room capacity at the existing 89,000 square foot Pennsylvania grower-processor facility to accommodate post-harvest expansion related to expanding to a much larger facility than initially anticipated at acquisition in the summer of 2020; and (3) growth in corporate overhead that reflects the opportunity and challenges of the very significant growth associated with the larger than planned grower-processor expansion and the upcoming adult use markets in VA and PA, both of which may happen by 2023.”


Video StaffAugust 23, 2021

1min23620

Jushi’s (OTC: JUSHF) Chief Creative Director Andreas Neumann has gotten raves for his rock & roll photography. He’s worked with the likes of Iggy Pop and the Foo Fighters. His international career in advertising and his ability to present products to various customers in various countries has prepared him to tell the story of Jushi cannabis. The challenge in cannabis is a beautiful puzzle for him to solve. Neumann believes cannabis is the new rock & roll.

PARIS, FRANCE – MAY 14: (L-R) Photographer Andreas Neumann, his wife model Khadija Neumann, singer Iggy Pop, photographer Matt Helders and musician Josh Homme attend Iggy Pop ‘Post Depression’ Art Pictures Exhibition at French Paper Gallery on May 14, 2016 in Paris, France. (Photo by Bertrand Rindoff Petroff/Getty Images)


Debra BorchardtAugust 2, 2021
beyond.jpg?fit=960%2C540&ssl=1

4min8430

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) decided to jump the gun with its good news and pre-announced its second-quarter 2021 financial results. Jushi reported that its revenue increased 14.6% sequentially to $47.7 million. This was a year-over-year increase of 219.7%. It was also within the range that had been forecast during the company’s last earnings report. At that time CEO Jim Cacioppo said, “For the second quarter of 2021, we expect revenues to be between $45 to $48 million and Adjusted EBITDA to be between $4 to $6 million.”

The company delivered an adjusted EBITDA of $4.6 million, or 9.6% of revenue for the second quarter. Jushi also trimmed its net losses in the second quarter to $11.4 million from the first quarter’s net loss of $28 million.

“Our second quarter 2021 results demonstrate the strength of our operations, with solid organic revenue growth at the high end of our guidance range and Adjusted EBITDA (A) in line with our expectations,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With 20 stores open, four cultivation and production facilities in operation, and a diversified medical and consumer brand portfolio, we have built a national footprint for long-term success. In the second half of 2021, we expect to open an additional seven BEYOND / HELLO  retail stores nationally, add two Nature’s Remedy of Massachusetts, Inc. dispensaries as well as a grower-processor facility in Massachusetts through an acquisition. Additionally, while construction at our Pennsylvania and Virginia grower-processor facilities has progressed, both projects are currently facing approximately three-month delays due to disruptions in the supply chain, which have negatively impacted the availability and pricing of construction materials. We believe the expansion of our retail footprint, including into Massachusetts, will continue to fuel our momentum through the second half of 2021, while the increase in cultivation capacity will more meaningfully contribute to our financial results in 2022.”

Arbitration Panel Rules In Jushi’s Favor

The company has had a spate of good news. Late last week, Jushi announced that the American Arbitration Association awarded $14,364,920.10 to Jushi Florida in its dispute against San Felasco Nurseries, Inc., a subsidiary of Harvest Health & Recreation. The Interim Award consists of $10,637,012 in damages, plus $3,727,908.14 in pre-award interest (accrued at a rate of $3,497.099 per day) and post-award interest at a rate of 12% per annum. The Panel of three arbiters also affirmed that Jushi is entitled to recoup attorneys’ fees from San Felasco, in an amount to be determined by the Panel.

The company said in a statement that the Interim Award was based on breach of contract and breach of the implied covenant of good faith claims brought by Jushi against San Felasco in October of 2018. “In its order, the Panel found that San Felasco improperly terminated its franchise agreements with Jushi FL without cause and in bad faith. San Felasco then sold its Florida cannabis business to Harvest, depriving Jushi of the royalties it would otherwise have realized. Following a final hearing in May of 2021, the Panel issued the Interim Award on July 29, 2021.”

“I am very pleased that the arbitration panel has ruled in our favor,” said Cacioppo. “This is the right outcome and highlights the strength of our company from a legal and business development perspective to successfully navigate through this complicated and highly regulated industry.”


Debra BorchardtJune 9, 2021
beyond.jpg?fit=960%2C540&ssl=1

9min10420

Jushi Holdings Inc.  (CSE: JUSH ) (OTCMKTS: JUSHF ) reported its official financial results for the fourth quarter and the full-year ending December 31, 2020, plus the first-quarter 2021 ending March 31, 2021. Jushi had originally released unaudited results in April. Revenue increased 29.0% sequentially in the first quarter of 2021 to $41.7 million from $32.3 million in the fourth quarter. It missed analyst estimates slightly by $650,000.  Jushi said the increase in revenue was due to solid revenue growth at the BEYOND/HELLO stores in Pennsylvania and Illinois, early revenue contributions from its Virginia retail operations, and increased operating activity at its PAMS and Nevada facilities.

The first-quarter net loss was $26.8 million, or $0.18 per diluted share, versus a net loss of $156.7 million, or $1.35 per diluted share, in the fourth quarter This missed analyst estimates by $0.14. Jushi said the $129.9 million improvement in net losses was due to a decrease in fair value losses on derivative liabilities, along with higher revenue and gross profit.

Fourth Quarter

Revenue in the fourth quarter of 2020 also increased 29.6% sequentially to $32.3 million from $24.9 million in the third quarter. The quarterly increase was attributed to strong organic growth at BEYOND/HELLO stores in Pennsylvania and Illinois, an increase in cultivation and manufacturing activity due to the acquisition of Pennsylvania Medical Solutions and increased operating activity at its Nevada cultivation and processing facility. The fourth-quarter net loss was a whopping $156.7 million, or $1.35 per diluted share, a big jump over the third-quarter net loss of $30.0 million, or $0.31 per diluted share. The company blamed the increase in net losses to a derivative warrant liability prompted by the rise of its share price and an increase in operating expenses, partially offset by higher revenue and gross profit.

Full Year 2020

For the full year of 2020, revenue increased 689.6% to $80.8 million versus $10.2 million in 2019. Jushi said the increase in revenue was due to the expansion of its retail portfolio, including the addition of nine new stores during the year, and an increase in wholesale revenue, driven by the acquisition of PAMS and increased operating activity at its Nevada cultivation and processing facility. The full-year 2020 net loss was $211.9 million, or $2.11 per diluted share, compared to a net loss of $30.8 million, or $0.37 per diluted share, in 2019.

Looking Ahead

Mr. Cacioppo said in a statement, “For the second quarter of 2021, we expect revenues to be between $45 to $48 million and Adjusted EBITDA to be between $4 to $6 million. We continue to believe our strong momentum, enviable footprint, and solid balance sheet positions the company well to execute on its current plans and drive long-term shareholder value through 2021 and beyond.” This would mean revenues are slowing a bit as the previous two quarters saw revenues rise 29% sequentially. With this new estimate, revenues will only rise approximately 7% – 15%.

PA Expansion Continues

Yesterday, Jushi announced that its subsidiary, Franklin Bioscience would open the company’s 13th BEYOND / HELLO medical marijuana dispensary in Pennsylvania and its 20th BEYOND / HELLO dispensary nationwide. On Friday, June 11, 2021, BEYOND / HELLO Easton will begin serving Pennsylvania medical marijuana patients and caregivers.

“The first BEYOND / HELLO dispensary was opened in Pennsylvania, so it’s only fitting that we reach our 20th retail store milestone with the opening of our 13th medical marijuana dispensary in the Keystone State,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With the opening of our newest retail location, we have not only broadened access for more Pennsylvania patients, but we have also expanded the reach of our newly introduced suite of highly innovative branded products, including The Bank, The Lab, Nira+, Tasteology, and Seche. In the coming months, we look forward to deepening and enhancing our business in key Pennsylvania markets with the continued expansion of our store base.”


Debra BorchardtApril 21, 2021
beyond.jpg?fit=960%2C540&ssl=1

4min15770

Jushi Holdings Inc.  (OTCMKTS: JUSHF) was not able to finish its audited fourth-quarter and full-year results by the April 30 deadline. Instead, Jushi delivered unaudited results said it expected to deliver the official numbers by May 24, 2021.  Despite the numbers being unaudited, revenues increased 30% sequentially in the fourth quarter to $32.3 million and easily tops last year’s revenue of $6 million for the same time period. For the full year 2020, Jushi reported revenues increased 690% to $80.8 million versus last year’s $10.2 million.

“While we’re disappointed by the unexpected delay that our auditors have experienced in finalizing their work, we’re thrilled with the underlying strength of our business, the robust growth we have achieved in 2020, and the continued momentum we have seen into 2021,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “2020 was a defining year for the Company. Our strategy to rapidly build scale in the best limited license markets on both the East and West coast combined with our focus on operational excellence has driven strong financial results on both a sequential quarterly and year-over-year basis.”

The company said that the income from operations was $0.4 million, a $9.6 million improvement as compared to the fourth quarter of 2019. Jushi also noted it has $93.8 million of cash, cash equivalents, and investments in securities on the balance sheet as of December 31, 2020. For the full year, Jushi delivered a loss from operations of $10.5 million, a $23.7 million improvement as compared to 2019.

Market Expansion

The company continues its blistering pace of expansion. In the fourth quarter, it opened three new retail dispensaries and exercised an option to purchase an additional three dispensaries (two of which were operational).

Mr. Cacioppo continued, “Together, we solidified our leadership position in Pennsylvania, by acquiring a grower-processor permit holder and two medical marijuana dispensary permit holders, each with licenses to operate three dispensaries. We also entered into three new markets, Illinois, California and Virginia, opened and/or acquired a total of nine retail stores, and launched a best-in-class, online shopping experience at Beyond-Hello.com. Furthermore, we established a deep and talented management team and strengthened the Company’s balance sheet with opportunistic debt and equity capital raises that allow us to fund the Company’s expansion plans and pursue opportunistic acquisitions.”

Mr. Cacioppo concluded, “With our recently announced planned acquisitions in Massachusetts and in Ohio; the previously announced expansion and build-out of our facilities in Pennsylvania and Virginia; and the continued build-out of our

 


StaffApril 20, 2021
Jushi.jpg?fit=960%2C640&ssl=1

3min10980

Jushi Holdings Inc. (OTCMKTS: JUSHF) is buying OhiGrow, LLC, one of 34 licensed cultivators in Ohio, and Ohio Green Grow LLC collectively known as OhiGrow in a deal valued at $5 million in cash. The acquisition includes an approximately 10,000 sq. ft. facility and 1.35 acres of land. Jushi said that OhiGrow will complement the soon-to-be operational 8,000 sq. ft. state-of-the-art Ohio medical cannabis processing facility, to which Jushi provides operational and consulting services. The deal is expected to close in the third quarter of 2021.

“We are thrilled to expand our operations and solidify our footprint in the rapidly growing Ohio medical cannabis market through this planned Acquisition and move one step closer to vertical integration in this burgeoning market,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With the tight restrictions on cultivation licenses and high barriers to entry in the Ohio market, this Acquisition is expected to rapidly establish Jushi’s presence in the market and secure a consistent and reliable source of high-quality medical cannabis.”

OhiGrow is located in Toledo, OH, approximately 100 miles or 2.5 hours from Columbus, OH. Jushi said that the current owners have invested approximately $4.5 million in the building, equipment and land. There is an additional 15,000 sq. ft. of available vacant space on the property, which can be further developed. OhiGrow holds a Level II cultivation license from the state, and has the right to apply for the necessary approvals to expand the facility’s cultivation area, ultimately up to the maximum 9,000 sq. ft. currently permitted under the Level II cultivation license. OhiGrow is expected to supply biomass to the Processing Facility once it is completed to create manufactured medical marijuana products for sale into the wholesale market.

The Ohio medical cannabis program is a limited license market with distinct licenses for cultivation, processing, and retail. As of February 28, 2021, the Ohio Medical Marijuana Control Program reported over 176,000 registered medical patients. As reported by the Ohio Medical Marijuana Control Program, from April 2019 through March 20, 2020, the state generated approximately $344 million in total medical cannabis product sales.


Debra BorchardtApril 19, 2021
Natures.jpg?fit=960%2C711&ssl=1

5min28500

Jushi Holdings Inc. (OTCMKTS: JUSHF) is buying a vertically integrated single state operator in Massachusetts called Nature’s Remedy of Massachusetts, Inc.  in a deal valued at $110 million. The acquisition is expected to close in the second half of 2021. Nature’s Remedy currently operates two retail dispensaries, in Millbury, MA and Tyngsborough, MA, and a 50,000 sq. ft. cultivation and production facility in Lakeville, MA with approximately 19,500 sq. ft. of high-quality indoor flower canopy and state-of-the-art extraction and manufacturing capabilities.

“We are excited to announce that we have signed a definitive agreement to acquire Nature’s Remedy, a vertically integrated business operating high-quality, well-managed assets in Massachusetts,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “Our entrance into Massachusetts will mark the seventh state where we operate cannabis assets and the third state where we are vertically integrated. This acquisition will enable us to rapidly build scale in an important, maturing adult-use market with a defensible retail position and a solid cultivation footprint with significant opportunities to expand.”

Terms of the Deal

Jushi has agreed to acquire Nature’s Remedy for an upfront payment of $100 million which will be $40 million in cash, $55 million in subordinate voting shares of Jushi, and $5 million unsecured promissory note. Jushi has also agreed to issue up to an additional $10 million in shares upon the occurrence or non-occurrence of certain conditions after the closing date, bringing the total potential consideration for the acquisition paid by the company to $110 million.

Who Is Nature’s Remedy?

The Millbury dispensary is located in the town of Millbury, MA just south of Worcester, MA. The Millbury dispensary caters primarily to the local population and surrounding underserved areas. The Millbury dispensary provides ample parking for its patrons and is strategically situated along the Worcester-Providence Turnpike, which sees approximately 10,600 cars per day. The Millbury dispensary is located in close proximity to the Shoppes at Blackstone Valley, the largest open-air shopping center in Central Massachusetts, and the Mass Turnpike.

Tyngsborough is located in northern Middlesex county just south of Nashua, New Hampshire. The Tyngsborough dispensary is strategically located in close proximity to the Pheasant Lane Mall, one of the largest malls in New Hampshire, as well as in close proximity to an exit on Route 3 / Northwest Expressway, which sees 60,000 to 80,000 cars per day. There is ample customer parking with potential for expansion.

The 50,000 sq. ft. Lakeville Facility is located within a 185,000 sq. ft. industrial complex. Currently, the Lakeville Facility’s flower canopy encompasses approximately 19,500 sq. ft., which Nature’s Remedy expects to expand to approximately 31,000 sq. ft. during the second half of 2021. The Lakeville Facility utilizes COextraction and has a full kitchen for edible production. Current flower production at the Lakeville Facility is approximately 6,800 lbs. / year, which, as part of the expected expansion, Nature’s Remedy could increase to approximately 11,000 lbs. / year based on 31,000 sq. ft. of canopy.


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 6 hours

Running a little late today but here’s your

@GreenMarketRpt – 19 hours

Nevada schools have received $159 million from cannabis taxes in FY21. @ShopPlanet13…

@GreenMarketRpt – 20 hours

Pretty scary results on Delta-8 products by The latest from

Back to Top

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.