Jushi Holdings Inc. (CSE: JUSH) has announced the closing of its debt financing, with proceeds of US$35.65 million and exchanged debt of US$9.56 million.
The company initiated debt financing in order to fund its working capital as well as to invest in growth and expansion efforts. As per the company’s debt financing options, investors could either purchase warrant notes or original issue discount senior secured promissory notes (OID notes), which are secured by the company’s and its subsidiaries assets.
The warrant notes, or senior secured promissory notes, accrue an annual interest of 10%, with cash payments disseminated each quarter. The warrant notes have a maturity date of January 15, 2023, and also come with warrants where investors can collect the company’s voting shares with 75% coverage. These warrants have an exercise price of $2.08, and a maturity and expire on December 23, 2024.
The second option investors had was to purchase OID notes, or original issue discount senior secured promissory notes, which also came affixed with an annual interest of 10%, with cash payments issued quarterly. The OID notes also have a maturity date of January 15, 2023, but come with a combined annual yield of 17%.
The exchanged notes included in the deal, valued at $9.56 million, consists of the TGS Illinois Holdings debt assumed in the arrangement announced yesterday.
Jushi Holdings is a hemp and cannabis company operating in the United States, and is currently trading at $1.65 on the CSE.
Information for this briefing was found via Sedar and Jushi Holdings Inc. 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.