Jushi Enters Massachusetts, Purchasing Nature's Remedy For $110M

Vertically integrated, multi-state cannabis company Jushi Holdings Inc. JUSH JUSHF is purchasing Nature's Remedy for $110 million.

The Boca Raton, Florida-based company agreed to acquire Nature's Remedy of Massachusetts, Inc. and its affiliates.

Under the terms of the agreement, Jushi will take over two retail dispensaries in Millbury and Tyngsborough, as well as a 50,000 square feet cultivation and production facility in Lakeville.

Apart from 19,500 square feet of flower canopy, the facility includes extraction and manufacturing capabilities.

Jushi expects to close the deal in the second half of this year.

The deal follows the recent $22 million acquisition of a 93,000 square feet facility in Virginia, operated by its subsidiary, Dalitso LLC.

Transaction Details: The Nature's Remedy purchase price includes an upfront payment of $100 million, including $40 million in cash, $55 million in Jushi's subordinate voting shares, and a $5 million unsecured promissory note.

Jushi agreed to pay an additional $10 million in shares, following the closing of the deal and upon meeting certain conditions.

Why It Matters: The acquisition expands the company's operational footprint to seven states.

Jim Cacioppo, the company's CEO, chairman and founder, said Monday that it "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."

What's Next: Jushi plans to collaborate with the current management team of Nature's Remedy and distribute its brands within Massachusetts.

Nature's Remedy expects to expand the Lakeville Facility's flower canopy to 31,000 sq. ft. and increase the flower production to roughly 11,000 lbs. on an annual basis, up from the current 6,800 lbs.

The potential expansion plans also include ten acres of land in Grafton, owned by Nature's Remedy.

Jushi's shares were trading 4.88% higher at $6.02 per share a the time of writing.

Photo by Esteban Lopez on Unsplash