Jushi Debuts In Massachusetts Via Completion Of Nature's Remedy Acquisition

Vertically integrated cannabis company Jushi Holdings Inc. (CSE : JUSH) JUSHF has wrapped up its previously announced acquisition of Nature’s Remedy of Massachusetts, Inc. and its affiliates, on the heels of opening its 22nd BEYOND / HELLO retail location nationwide.

Jim Cacioppo, the company’s CEO, chairman and founder, said he is thrilled that the company is officially entering the Massachusetts market, “adding Nature’s Remedy, a vertically integrated business operating high-quality, well-managed assets.”

Transaction Details

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

The upfront consideration of $91.2 million for the acquisition includes $40 million in cash, approximately $34.7 million in stock, an $11.5 million unsecured three-year note, and a $5.0 million unsecured five-year note.

The company also opted to issue up to an additional $5 million in its shares and a $5 million increase to the principal balance of the three-year note upon the occurrence or non-occurrence of certain conditions after the closing date, bringing the total potential consideration for the acquisition to $101.2 million.

Once all conditions are met, the company expects to issue up to 4.3 million fewer of its shares, assuming an average daily volume-weighted price of $4.61 due to the revised deal.

What It Means For Jushi

Cacioppo said that “Nature’s Remedy offers significant opportunities for us to expand and grow our presence in this rapidly maturing adult-use market.”

In addition, the Lakeville facility includes roughly 22,000 sq. ft. of high-quality indoor flower canopy and state-of-the-art extraction and manufacturing capabilities.

What’s Next

The company plans to expand Nature’s Remedy’s wholesale revenue in the fourth quarter due to an additional cultivation capacity, as well as execute the planned resale of excess inventory at the Lakeville Facility. Nature’s Remedy expects to bolster the facility’s footprint to approximately 32,500 sq. ft. by the year-end.

Price Action

Jushi’s shares traded 2.69% lower at $3.99 per share after market close on Friday.

Photo: Courtesy of Avery Meeker on Unsplash