Jushi Holdings Inc. (“Jushi” or the
“Company”) (CSE: JUSH)
(OTCQX: JUSHF), a
vertically integrated, multi-state cannabis operator, announced
that it has entered into definitive documentation in respect
of a US$100 million Senior Secured Credit Facility (the
“Acquisition Facility”) from a portfolio company of SunStream
Bancorp Inc. (“Sunstream”), a joint venture sponsored by Sundial
Growers Inc. (NASDAQ:SNDL). Jushi intends to initially draw US$40.0
million from the Acquisition Facility to fund the cash portion of
the recently completed acquisition of Nature’s Remedy of
Massachusetts, Inc. and certain of its affiliates (collectively,
“Nature’s Remedy”). 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,” said Jim Cacioppo, Chief
Executive Officer, Chairman, and Founder of Jushi Holdings Inc.
“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.”
After being drawn, loans issued under the
Acquisition 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. Jushi also
holds the ability to increase the total commitment of the
Acquisition Facility by an aggregate amount of up to $25 million,
subject to certain conditions of the agreement. The Acquisition
Facility 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.
Further details on the credit facility can be
found in Jushi’s documents filed under the Company’s profile on
SEDAR at www.sedar.com.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company
led by an industry-leading management team. In the United States,
Jushi is focused on building a multi-state portfolio of branded
cannabis assets through opportunistic acquisitions, distressed
workouts, and competitive applications. Jushi strives to maximize
shareholder value while delivering high-quality products across all
levels of the cannabis ecosystem. For more information, please
visit jushico.com or our social media channels, Instagram,
Facebook, Twitter, and LinkedIn.
Forward-Looking Information and
Statements
This press release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities legislation and may also contain statements
that may constitute "forward-looking statements" within the meaning
of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
information and forward-looking statements are not representative
of historical facts or information or current conditions but
instead represent only the Company’s beliefs regarding future
events, plans or objectives, many of which, by their nature,
involve estimates, projections, plans, goals, forecasts, and
assumptions that may prove to be inaccurate. As a result, actual
results could differ materially from those expressed by such
forward-looking statements and such statements should not be relied
upon. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as “plans,” “expects” or “does not
expect,” “is expected,” “budget,” “scheduled,” “estimates,”
“forecasts,” “intends,” “anticipates” or “does not anticipate,” or
“believes,” or variations of such words and phrases or may contain
statements that certain actions, events or results “may,” “could,”
“would,” “might” or “will be taken,” “will continue,” “will occur”
or “will be achieved”. The forward-looking information and
forward-looking statements contained herein may include but are not
limited to, information concerning the expectations regarding
Jushi, or the ability of Jushi to successfully achieve business
objectives, and expectations for other economic, business, and/or
competitive factors.
By identifying such information and statements
in this manner, the Company is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements. In addition, in connection with the
forward-looking information and forward-looking statements
contained in this press release, the Company has certain
expectations and has made certain assumptions. Among the key
factors that could cause actual results to differ materially from
those projected in the forward- looking information and statements
are the following: the ability of Jushi to successfully and/or
timely achieve business objectives, including with regulatory
bodies, employees, suppliers, customers and competitors; changes in
general economic, business and political conditions, including
changes in the financial markets; changes in applicable laws; and
compliance with extensive government regulation, as well as other
risks and uncertainties which are more fully described in the
Company’s Management, Discussion and Analysis for the three months
ended June 30, 2021, and other filings with securities and
regulatory authorities which are available at www.sedar.com. Should
one or more of these risks, uncertainties or other factors
materialize, or should assumptions underlying the forward-looking
information or statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
Although the Company believes that the
assumptions and factors used in preparing, and the expectations
contained in, the forward-looking information and statements are
reasonable, undue reliance should not be placed on such information
and statements, and no assurance or guarantee can be given that
such forward-looking information and statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward- looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward-looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Not for distribution to United States
newswire services or for dissemination in the United
States.
For further information, please
contact:Investor Relations
Contact:Michael PerlmanExecutive Vice President of
Investor Relations and
Treasury561-281-0247Investors@jushico.com
Media Contact:Ellen MellodyMATTIO
Communications570-209-2947Ellen@Mattio.com
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