Jushi Archives - Green Market Report

Debra BorchardtDebra BorchardtMarch 25, 2020
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4min2930

Multi-state operator Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) said that its dispensaries received the “life-sustaining” business designation in Pennsylvania and the “essential services” designation in Illinois. As a result, the company’s six dispensaries in Pennsylvania, operating under the brand “BEYOND/HELLO,” and its two dispensaries in Illinois, operating under the brand “The Green Solution” (transitioning to BEYOND/HELLO branding later this year), will remain open.

The Company is announcing several initiatives prioritizing its medical patients and customers most susceptible to COVID-19 during the pendency of the COVID-19 outbreak:

  • Pennsylvania – Effective immediately, BEYOND/HELLO dispensaries will only serve patients 50 years or older in the first hour of operations. Curbside pick-up will begin to be offered at three PA dispensaries starting March 30th. Curbside pick-up available at Bristol, West Chester and Scranton PA locations.
  • Sauget, Illinois – Beginning March 30th, The Green Solution dispensary will only serve medical patients on Mondays. In addition, starting on March 31st, The Green Solution dispensary will serve only medical patients and customers 50 years or older during the first hour of operations. Curbside pick-up will also be offered to medical patients beginning March 26th.
  • Normal, Illinois – Beginning March 31st, The Green Solution dispensary will only serve patients 50 years or older in the first hour of operations. Curbside pick-up will also be offered to medical patients beginning March 26th.

As of March 25th, Jushi acquired the two Illinois dispensaries on January 30th and has subsequently begun serving adult-use customers at its Sauget location as of March 2nd. Through the first three weeks of March, company-wide retail revenues were approximately $3 million, an increase of approximately 70% as compared to February 2020.

“I am proud of all of our team members for responding quickly and appropriately during this rapidly evolving and uncertain time globally. Thus far in March, we have seen a significant increase in traffic and demand, which is a reflection of the loyalty of our customer base. Going forward, we will continue to closely monitor the status of our operations and make adjustments as needed to ensure the health and safety of our patients, customers, and employees,” said Jim Cacioppo, Chairman and Chief Executive Officer of Jushi.

Insider Buying

In a separate announcement, Jushi said that insider Denis Arsenault acquired shares and sold notes and warrants. “Following the completion of the acquisitions and dispositions of the Specified Securities as outlined above, the Acquiror holds $7,500,000 of the Notes, 4,000,000 multiple voting shares of the Issuer, 2,329,162 Subordinate Voting Shares and 11,174,206 Warrants, which represent in the aggregate, on an as-converted basis, 17.01% of the Subordinate Voting Shares issued and outstanding.


Debra BorchardtDebra BorchardtJanuary 31, 2020
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3min3140

While many have complained of capital drying up in cannabis, Jushi Holdings Inc. just upsized its round of financing due to new investors. The company announced the receipt of $35.65 million in proceeds and $9.56m of exchanged debt in connection with its previously announced debt financing.

Jim Cacioppo, Chairman, and CEO of Jushi Holdings Inc. stated, “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 $200 to $250 million in revenue in 2021.”

Jushi has received cash proceeds of $35.65m for debt financing. Additionally, $9.56m of debt assumed in Jushi’s acquisition of TGS Illinois Holdings, Inc. has been exchanged into the Warrant Notes with a slightly different redemption right.  Including this exchanged debt, the total debt issued in Jushi’s debt financing is approximately $47 million

Terms of the Deal

Investors were given two financing structures. The first structure was a senior secured promissory 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 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 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.


Debra BorchardtDebra BorchardtJuly 5, 2019
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3min14420

Jushi Holdings Inc. (NEO: JUSH.B), signed a definitive agreement to acquire its first operational adult-use and medicinal dispensary in San Diego in a deal valued at $12 million. Jushi is getting 75% of the equity and voting interest in the dispensary. The deal is expected to close in the third or fourth quarter of this year.

“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,” said Jushi CEO and Chairman, Jim Cacioppo. “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.”

Terms

The company said in a statement that the $12 million will be paid 50% in cash and 50% by way of issuance of certain 8% secured 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, 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 $2.30 and a maximum of $2.875 per Share.

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.

 


Debra BorchardtDebra BorchardtJune 10, 2019
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3min8200

Jushi Holdings Inc. began trading on the NEO Exchange on Monday, June 10 under the symbol (NEO:JUSH). The company is fairly new and is known for its recently launched a full spectrum CBD – hemp-derived product line called Mend. The company has plans to build out a significantly large hemp processing facility, Sound Wellness, a Jushi subsidiary to execute on the hemp opportunity.

“Listing on the NEO provides Jushi a solid foundation to build on its current growth trajectory as well as access new shareholders through the capital markets as a public company,” said Jushi CEO and Chairman, Jim Cacioppo. “At the same time, this does not affect Jushi’s disciplined focus on optimal capital allocation and deal structuring to maximize shareholder value.”

The listing follows the previously announced reverse takeover of a Canadian public company, Tanzania Minerals Corp. The public company was then renamed Jushi Holdings in connection with the reverse takeover and the listing on the NEO.  Jushi raised approximately $68.2 million through a brokered and non-brokered private placement.

Jushi also recently acquired the trademarks The Clinic, The Clinic Consulting Services, The Bank and The Lab as well as, subject to certain limited exceptions, intellectual property derived from the operations of The Clinic Colorado. The Clinic Colorado is a Denver-based cannabis company known for its intellectual property concerning cannabis cultivation, processing, retail distribution, compliance, and safety in multiple states. Jushi paid $4,115,000 in cash and $5,885,000 worth of shares in relation to this asset purchase.

Earlier this year Jushi’s subsidiary Sound Wellness received approval of its industrial hemp-CBD processor license application as part of the New York State Industrial Hemp Agricultural Research program, administered by the New York State Department of Agriculture and Markets. By investing over $5 million in a high-tech hemp processing operation on the east side of Buffalo, NY, Jushi expects to create approximately 30-65 jobs in the area. The facility will house a state-of-the-art lab, allowing Sound Wellness to create advanced product formulations using CBD distillate, CBD isolate, and water-soluble CBD.

In California, Jushi is going after several retail locations with delivery capabilities and those with vertically integrated capacities but those retail licenses are only at the pending stage. There is a definitive agreement in Nevada to acquire a cultivation license, manufacturing license, industrial hemp license, and a distribution license (application pending) subject to regulatory approval.

 


StaffStaffFebruary 5, 2019
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6min7400

It’s time for your Daily Hit of cannabis financial news for February 5, 2019.

On The Site

Verano

Illinois-based Verano Holdings, LLC has acquired Four Daughters Compassionate Care Inc. of Sharon, Massachusetts and its provisional medical cannabis licenses for an undisclosed amount. The first cultivation and dispensary facilities in Sharon are expected to open in six to nine months. The company said it would hire 50-75 employees locally and train them for these sites in 2019.

As a result of the acquisition, Verano has begun building a cultivation and production facility in Sharon Massachusetts. The company is also renovating an adjacent building for the dispensary. The acquisition marks Verano’s expansion into an additional adult-use market and its expanding geographic footprint into the Northeast from its current 10 operating facilities in Illinois, Maryland, Nevada and Florida, with 45+ licenses under active development in Florida, Michigan, Ohio, Puerto Rico, and Maryland.

GTI

Green Thumb Industries Inc. (OTCQX: GTBIF) is acquiring For Success Holding Company, the owner of Los Angeles-based Beboe branded cannabis products for an undisclosed amount that will be paid in GTI stock.

Beboe is known as a premium brand for its high-end packaging including its iconic rose gold vaporizer pens. The products are available in more than 125 California and Colorado retail locations and via home delivery across California.

In Other News

Jushi

Sound Wellness LLC, a subsidiary of Jushi Inc. has received approval of its industrial hemp-CBD processor license application as part of the New York State Industrial Hemp Agricultural Research program, administered by the New York State Department of Agriculture and Markets. With this announcement, Jushi is proud to support the Western New York community, New York farmers, and the nation’s premier industrial hemp program. Sound Wellness’ hemp-CBD processor license supports the company’s initiative to create product innovations centered around the untapped potentials of hemp.

By investing over $5 million in a high-tech hemp processing operation on the east side of Buffalo, NY, Jushi expects to create approximately 30-65 jobs in the area. The facility will house a state-of-the-art lab, allowing Sound Wellness to create advanced product formulations using CBD distillate, CBD isolate, and water-soluble CBD.

The Flowr Corp.

The Flowr Corporation (OTC: FLWPF)  has submitted an application to list its common shares on The NASDAQ Capital Market and has filed a Form 40-F Registration Statement with the U.S. Securities and Exchange Commission.

Target Group Inc.

Target Group Inc. (OTCQB: CBDY) entered into an agreement to acquire Massachusetts-based CannaKorp Inc. CannaKorp is the holder of the patent-pending WISP vaporizing system.

The WISP™ is a pod-based, herbal vaporizing system that uses precisely measured, sealed and tested WISP™ Pods containing dried, ground botanicals. The WISP™  vaporizer, used together with WISP™  Pods, gives cannabis users the predictability and assurance to know what they’re inhaling with every use, without the hassle of grinding, measuring, or packing. For the rapidly evolving market of cannabis consumers who prefer vaporization, Wisp™ presents a proven method of delivery with unique bioavailability benefits and avoids the health concerns associated with the combustion of cannabis and other herbs.

Origin House

CannaRoyalty Corp. d/b/a Origin House  (OTCQX: ORHOF) entered into an agreement to provide strategic financing of US$704,000 to Humboldt’s Finest, an alliance of heritage cannabis farms representing Humboldt County. Humboldt’s Finest produces sun-grown cannabis flower on their farms in Humboldt County, California, which is processed into products including jarred flower, pre-roll flower joints, live resin dabs/jars and/or live resin cartr



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