Jushi Archives - Page 2 of 3 - Green Market Report

StaffAugust 25, 2021
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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

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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
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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
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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
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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
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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
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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.


StaffApril 14, 2021

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Jushi Holdings Inc.  (OTCMKTS: JUSHF) is buying the 93,000 sq. ft. facility, operated by its wholly-owned subsidiary and Virginia-based pharmaceutical processor, Dalitso LLC , together with approximately nine acres of surrounding land in Prince William County, Virginia, for approximately $22 million. The Acquisition, together with Dalitso’s planned buildout of the Facility, will enable Dalitso to efficiently produce a consistent supply of medical cannabis products as patient access improves and as the medical cannabis program matures and expands. The Acquisition is subject to customary closing conditions and is expected to close in the second quarter of 2021.

In December 2020, Jushi announced it completed the acquisition of the remaining 21% of the issued and outstanding equity of Dalitso, bringing its ownership to 100%. Jushi also announced in December 2020 that Dalitso had commenced operations at the Manassas facility and officially began serving patients at its BEYOND / HELLO Manassas location.

“The Virginia cannabis market is an area of strategic focus for Jushi given Dalitso’s strong position in the most densely populated region in the Commonwealth,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “Through the completion of this acquisition, Dalitso will have the expansion capacity required to scale cultivation and processing to meet the anticipated patient demand of a growing program. Jushi is dedicated to providing patients with best-in-class products and dispensing experiences that go beyond expectations. To that end, we look forward to the continued build out of our Facility so we can best serve registered patients. Separately, we were pleased to see Governor Northam and the General Assembly respond to their constituents by moving the effective date of legal possession date for small amounts of cannabis forward to July 1, 2021. We hope the Governor and General Assembly will act expeditiously and with similar decisiveness to authorize legal procurement so Virginians without a medical certification have access to safe and controlled cannabis products in a regulated market without material delay.”

Virginia

Virginia recently became the 17th state to legalize cannabis for adult use and the fourth state to do so by passing a bill through its state legislature versus going to the voters. Virginia lawmakers approved a bill that would legalize, regulate, and tax cannabis sales for adults 21 and over.   It will probably be another two years before the state sees any retail sales.

Dalitso is one of only five applicants to have received conditional approval for a pharmaceutical processor permit issued by the Virginia Board of Pharmacy, and one of only four to have received final approval and permit issuance in the Commonwealth. Dalitso’s permit allows Dalitso to cultivate, process, dispense, and deliver medical cannabis to registered patients in Virginia. The designated area for Dalitso to operate is Health Service Area II, in Northern Virginia, which includes two of Virginia’s most densely populated counties, Fairfax and Prince William, and has a population of approximately 2.5 million people or nearly 30% of the state’s total population according to the U.S. Census Bureau.


Debra BorchardtMarch 1, 2021
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The cannabis community is certainly pleased to see that the state of Virginia has legalized adult-use cannabis, but it will be some time before sales can begin. Still, despite support for the legislation it looked to be a nail-biter to the end. The Virginia House and Senate lawmakers were in agreement on passing the law, but they differed on just exactly what it would look like.

The two sides have been working over the past few weeks to reach a compromise, which was beginning to look less possible. Then on Saturday, it seemed the law just managed to squeak through. Marijuana Moment reported, “The Senate voted 20-19 to approve the conference committee report on its bill as well as the identical version for the House legislation. The House voted to approve the conference report on its bill, 48-43, with two abstentions. When considering the Senate version, the House voted 47-44, with one abstention.”

The next stop for the legislation goes to Democratic Gov. Ralph Northam, who supports legalization. However, it will be some time before Virginians will actually be able to purchase adult-use cannabis in the state.

Sales Begin January 1, 2024

Another major area of contention dealt with how the state would approach cannabis possession in the time between the bill’s signing and implementation of legal sales going into effect. Under both versions, the adult-use market wouldn’t launch until January 1, 2024 to give the state time to establish a regulatory agency to oversee the program. While the Senate had wanted to make the legalization of simple possession and home cultivation take effect starting on July 1 of this year, negotiators ultimately agreed to delay it to coincide with commercialization in 2024.”

One company that was intently focused on the outcome of this legislature was Jushi Holdings (OTC: JUSHF). In the fall of 2020, Jushi, through its 100% owned Virginia-based pharmaceutical process permit holder, Dalitso LLC, started operations at its 93,000 sq. ft. cultivation, manufacturing, processing and retail facility in Manassas, and opened the first of six dispensaries operating under the company’s retail brand, BEYOND / HELLO on December 1, 2020. Dalitso is currently one of only five applicants to have received approval for a pharmaceutical processor permit issued by the Virginia Board of Pharmacy, and the designated area for Dalitso to operate is Health Service Area II, in Northern Virginia, which has a population of approximately 2.5 million people or nearly 30% of the state’s population. This area includes two of Virginia’s most densely populated counties, Fairfax and Prince William County.

“The adult-use cannabis legislation passed by the Virginia General Assembly is a critically important first step on the path toward legalization,” said Jushi CEO and Founder Jim Cacioppo. “These bills begin to accomplish fundamental justice and equity priorities as well as promote public health.  Jushi appreciates the General Assembly’s commitment to address these complex issues, especially the passion shown by Senators Adam Ebbin and Louise Lucas and Delegate Charniele Herring in answering Governor Ralph Northam’s call for legalization.
Adding flower to Virginia’s medical cannabis program is a critical advance and Jushi applauds Delegate Cliff Hayes and Senator Louise Lucas on this achievement.  We expect that around the end of the year, this new legislation will allow pharmaceutical processors to make medicines available at much lower price point and expand access to patients who could otherwise not afford sustained medical cannabis therapy.”


Debra BorchardtNovember 23, 2020
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Jushi Holdings Inc.  (OTCMKTS: JUSHF) said it is planning a $50 million expansion project in Scranton, Pennsylvania which is expected to create more than 100 more new jobs in the Scranton area. The company said it plans to nearly double the square footage of its subsidiary’s grower-processor facility from approximately 90,000 sq. ft. to more than 160,000 sq. ft. in a phased expansion.

In 2019, the company opened the medical marijuana dispensary BEYOND / HELLO Scranton. Jushi already employs 70 people in the Scranton area and once this expansion is completed, it will have added 17 new jobs to the region. For the expansion, the company also plans to hire all local construction, electricians, and vendors for its expansion efforts.

“The medical cannabis market in Pennsylvania is rapidly growing and with our products in high-demand, this investment will significantly expand our cultivation capacity and market share,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “This is a robust operating environment and with the market intelligence gained through our eight currently operating BEYOND / HELLO retail dispensaries, we believe that patient demand for high-quality, medical-grade cannabis products is still far from being satisfied. We are very excited by the opportunity ahead of us in Pennsylvania, and as one of the fastest-growing jobs sectors in the U.S., Jushi and its subsidiaries look forward to bringing additional new local jobs and tax dollars to the region and further investing in Scranton’s economy and community.”

Pennsylvania

Pennsylvania’s Republican legislature continues to block the adult-use legalization measure despite the state’s widening budget gap.  PA Governor Tom Wolf has been pushing for the legalization of cannabis for adults and looking for ways to close the budget gaps. If adult-use legalization were to pass in PA, the cannabis industry would likely double to triple in size, which would only create more taxes for state and local coffers and jobs in PA. The state is also facing pressure from its border with New Jersey which is planning on fast-tracking the legalization of adult-use cannabis. This could negatively impact the medical market in the state.

Expansion Plans

Jushi said that the majority of the approximate 70,000 sq. ft. expansion project will be focused on increasing the facility’s canopy space, which upon completion will nearly triple to approximately 98,000 sq. ft. In a statement, the company said that the first phase of the expansion is expected to come online in mid-2021 and the final phase will be completed by the second quarter of 2022. In total, Jushi expects to invest approximately $50 million in the expansion project, which is expected to create more than 100 new jobs in the Scranton area. Jushi (through its subsidiary Pennsylvania Medical Solutions, LLC), will work with Innovative Industrial Properties Inc. (NYSE: IIPR)  (through its subsidiary IIP-PA 1 LLC) to partially finance the expansion project via an upsize to the existing lease agreement between the parties. The expansion project is subject to the company’s successful completion of certain milestones, including receipt of all local and state approvals and permits, and the finalization of a mutually agreed lease amendment with Innovative Industrial Properties Inc. related to the Facility.

The company reminded investors that it recently completed an expansion project in the third quarter of 2020, which included increasing the facility’s indoor cultivation from approximately 20,000 sq. ft. to approximately 45,000 sq. ft. (~33,000 sq. ft. of canopy) and supplementing the current CO2 extraction with new Class I, Division 1 ethanol extraction technology. The facility produces high-quality, indoor-grown flower and extracts and is strategically located within minutes of Interstate 81, Interstate 84 and the Pennsylvania Turnpike, enabling efficient wholesale distribution to the 98 dispensaries currently operating across the commonwealth, including the Company’s eight operational BEYOND / HELLO dispensaries. The facility is expected to supply the company’s subsidiaries and other licensed retail facilities.


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