Jushi Acquires Vireo’s Pennsylvania Cultivation Assets, Announces Secured Financing

It appears that Vireo Health (CSE: VREO) is in the process of selling off assets. It was announced this morning that Jushi Holdings (CSE: JUSH) will be acquiring the firms Pennsylvania Medical Solutions, LLC, the operator of a 90,000 square production facility with 45,000 square feet of indoor cultivation.

The facility can accommodate a further 25,000 square feet of production if needed, while there is also an ongoing expansion underway at the property to increase cultivation from 20,000 square feet to 45,000 by mid-year. Once completed, the facility is anticipated to produce 800 to 1,000 pounds of dried flower a month.

Under the terms of the transaction, Jushi will pay US$16.3 million in cash for 100% equity in what they refer to as the “permittee”. A US$3.8 million seller note will also be issued in connection with the sale, along with the assumption of a US$17 million facility with a long-term lease obligation. No equity will be issued in connection with Jushi’s purchase.

Jushi will also obtain an option to acquire a 100% interest in Pennsylvania Dispensary Solutions, LLC in connection with the offer, a permitee for dispensary operations in the Northeast region of the state.

Subsequently, Jushi also announced a US$15.25 million financing via the issuance of senior secured notes bearing interest at 10% per annum, along with subordinate voting share warrants. The notes are to mature January 15, 2023. Warrant coverage is to amount to 75% of the offering, with any warrants issued having an expiry of December 23, 2024 and an exercise price of US$1.25 (C$1.70).

US$15.0 million of the offering will be utilized to purchase the Pennsylvania facility, with interest having been shown for up to an additional $10 million in financing.

The financing is to close in connection with the asset purchase from Vireo, which is anticipated to occur by the end of August 2020.

Lastly, Jushi also reaffirmed its 2021 revenues guidance of $200 to $250 million, with more details to be provided on the closing of the Pennsylvania asset purchase.

Jushi Holdings last traded at $1.75 on the CSE.


Information for this briefing was found via Sedar, Jushi Holdings and Vireo Health. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Jushi Holdings to Acquire Pennsylvania Assets

Jushi Holdings (NEO: JUSH) announced this morning its entrance into the Pennsylvania medical cannabis market....

Tuesday, June 18, 2019, 09:08:32 AM

Verano To Acquire Goodness Growth For US$413 Million In All-Stock Purchase

Verano Holdings (CSE: VRNO) is looking to significantly expand its footprint across the US. The...

Tuesday, February 1, 2022, 08:21:16 AM

Jushi Holdings To Acquire Ohio Licensed Cultivator For $5.0 Million

Jushi Holdings Inc. (CSE: JUSH) announced today that it has signed a definitive binding agreement...

Tuesday, April 20, 2021, 10:01:00 AM

Jushi Holdings To Raise $65.0 Million In Overnight Offering

Jushi Holdings (CSE: JUSH) has priced its overnight marketed offering this morning. The company will...

Wednesday, February 10, 2021, 09:23:34 AM

Jushi Enters State Of Massachusetts Following Closing Of Acquisition

Jushi Holdings (CSE: JUSH) has officially entered the State of Massachusetts. The company has entered...

Monday, September 13, 2021, 09:10:04 AM