Jushi Announces Proposed Debt Financing

Jushi Holdings Inc. JUSH JUSHF announced the receipt of binding subscriptions to date totaling approximately $68 million for the issuance of 12% second lien notes and warrants to purchase the company’s subordinate voting shares in a private offering.

Pursuant to the terms of the offering the company may issue additional notes on the same terms, subject to market conditions and investor interest. The notes will mature four years from the date of issuance, will bear interest of 12.0% per annum, payable in cash quarterly, and will be guaranteed by certain of the company’s direct and indirect domestic subsidiaries and secured by second priority liens on certain assets of the company and certain of the company’s direct and indirect domestic subsidiaries. In connection with the offering, the purchasers of the notes will also receive four-year warrants at 50% coverage with an exercise price to be determined at closing.

The company expects the closing of the offering to occur in late November or early December of this year. The company intends to use the net proceeds from the offering to redeem its outstanding existing 10% senior secured notes due January 2023 and, to the extent there are remaining proceeds, for general corporate purposes, including but not limited to working capital, capital expenditures and potential acquisitions.

Entities affiliated with Jim Cacioppo, Jushi’s CEO, chairman and founder, subscribed for $3.0 million of the notes, and Denis Arsenault, a significant stockholder of the company subscribing for $13.4 million of the notes.

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