Jushi Holdings Sees Sundial Growers Joint Venture Provide US$100 Million Credit Facility

Jushi Holdings (CSE: JUSH) is the latest multi state cannabis operator to get further funding this week. The company this morning reported that it has entered into a definitive arrangement for a US$100 million senior secured credit facility.

The facility itself comes from SunStream Bancorp, which is a joint venture that is sponsored by Sundial Growers (NASDAQ: SNDL), presumably as a means for the company to gain exposure to the US cannabis space. The facility is referred to as an “acquisition facility,” meaning it is to be used to acquire further operators in the US.

The facility currently bears interest at a rate of 9.5% per annum, payable quarterly, with the first two years said to contain interest-only payments. The debt matures five years from closing date, with the company able to make drawdowns on the facility for the first eighteen months. Lastly, the total size of the credit facility is eligible to be increased by US$25 million based upon certain undisclosed conditions.

To date, Jushi has reportedly drawn down $40 million, which is being used to satisfy the cash portion of its recent acquisition of Nature’s Remedy of Massachusetts. The remaining funds, if used, are to be used for “strategic expansion opportunities” in both core and developing markets that the company operates within.

The investment is believed to be one of the first made under the Sunstream Bancorp banner by Sundial Growers.

Jushi Holdings last traded at $4.84 on the CSE.


Information for this briefing was found via Sedar and the companies mentioned. 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

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

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 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

Jushi Holdings Raises $74.8 Million In Overnight Offering

Jushi Holdings (CSE: JUSH) has closed its previously announced overnight marketed public offering. The company...

Friday, February 12, 2021, 08:57:57 AM

Canaccord Lifts Sundial Growers Price Target To $0.80 Following Alcanna Transaction News

On October 7, Sundial Growers (NASDAQ: SNDL) announced that they entered into an agreement to...

Wednesday, October 13, 2021, 11:46:00 AM

Sundial Growers Drops Two Tiers At Nasdaq To Avoid Near Term Reverse Split

Sundial Growers (NASDAQ: SNDL) appears to be doing all that it can to avoid being...

Friday, December 11, 2020, 08:46:46 AM

Jushi Holdings Reports FY2020 Revenues Of US$80.8 Million, US$211.9 Million Net Loss

Jushi Holdings Inc. (CSE: JUSH) released this morning its full-year financial results for 2020, highlighting...

Wednesday, June 9, 2021, 09:10:20 AM