Jushi Holdings To Borrow Up To $100M From Sundial Growers' Sunstream

Jushi Holdings Inc. JUSH JUSHF revealed Thursday it has secured a $100 million credit facility from a portfolio company of SunStream Bancorp Inc. to support part of its recently finalized purchase of Nature’s Remedy of Massachusetts, Inc. and certain of its affiliates. SunStream Bancorp Inc. is a joint venture sponsored by Sundial Growers Inc. SNDL.

The vertically integrated cannabis company confirmed it has entered into definitive documentation in respect of a $100 million senior secured credit facility, with plans to initially draw $40.0 million to fund the Nature’s Remedy acquisition.

The Boca Raton, Florida-based multi-state operator noted that it will consider borrowing future amounts under the credit facility to support potential strategic expansion opportunities.

Additionally, the company will consider borrowing future amounts under the Acquisition Facility for potential strategic expansion opportunities in both its core and developing markets.

“Securing non-dilutive funding from Sunstream strengthens our balance sheet and positions us to aggressively pursue our national growth plans,” Jim Cacioppo, CEO, chairman, and founder of Jushi stated. “This increased financial flexibility will allow us to continue our ongoing expansion efforts in existing markets such as Nevada, Illinois, Ohio and California, and pursue new, potential target markets such as New Jersey, Maryland, and other high-growth regions. We remain focused on identifying strategic opportunities to bolster our operations across the supply chain, with a view to fostering long-term value for our shareholders.”

The Loan Details

After being drawn, loans issued under the credit facility will bear an interest rate of 9.5% per annum, payable quarterly, and will mature five years from the closing date. Jushi will be able to make draws under the facility for an 18-month period, and will have a two-year interest-only period before partial amortization begins on a quarterly basis.

The company has the option to increase the total commitment of the credit facility to a total of up to $25 million, subject to certain conditions of the agreement. The credit facilitiy is secured by a first lien over certain company assets and on a pari passu basis with current senior indebtedness on existing assets that are collateralized under Jushi’s current senior debt facility.

More recent news from Jushi:

Analyst Explains Why Jushi Is One Of The Best Cannabis Stocks Among Leading MSOs

Jushi Is Now Vertically Integrated In Nevada Via Acquisition Of The Apothecarium

Jushi To Kick Off Sale Of The Bank and Sèche Products In VA, Rubicon Organics Introduces New SKUs

Price Action

Jushi’s shares closed Wednesday’s market session 3.21% lower at $3.9 per share.

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