Jushi Holdings Inc. Terminates Agreement to Acquire Operational Adult-Use Dispensary in San Diego
May 10 2020 - 5:30PM
Jushi Holdings Inc. (“Jushi” or the
“Company”) (CSE: JUSH) (OTCQX: JUSHF), a globally focused,
multi-state cannabis and hemp operator, announced the termination
of an agreement to acquire an operational adult-use and medicinal
dispensary in San Diego, CA.
Under the agreement that was signed in the third
quarter of 2019, Jushi was to purchase seventy-five percent (75%)
equity and voting interest in the San Diego dispensary – subject to
working capital and other customary adjustments – for a price of
approximately US$12 million. The closing of the transaction was
subject to regulatory and other customary closing conditions and
was initially scheduled for completion by the end of 2019. On April
8, 2020 the Company notified the sellers of the San Diego
dispensary that they were in breach of the agreement and had 30
days to cure the breaches or the Company may terminate the
agreement. Sellers responded on April 21, 2020 that they have not
breached the agreement and alleged that the Company is in breach
for not closing the transaction. As of May 9, 2020, the
sellers had not cured the breaches to the agreement. Therefore, in
the best interest of the Company and its shareholders, the decision
was made for the Company to terminate the agreement effective
immediately.
Jim Cacioppo, Chairman and Chief Executive
Officer of Jushi commented, “We will continue to pursue M&A
opportunities in limited license jurisdictions within California
that align with our core businesses and growth strategy. Jushi
expects to close on its definitive agreement in Santa Barbara for
one of the three dispensary licenses in that City during the third
quarter of 2020, and a Jushi subsidiary received approval for a
retail and delivery permit in Culver City, California last year. We
remain confident that we can expand our presence within California
by targeting limited license markets with high barriers of
entry.”
About Jushi Holdings Inc. We
are a globally focused cannabis and hemp company led by an industry
leading management team. In the United States Jushi is focused on
building a multi-state portfolio of branded cannabis and
hemp-derived 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 and hemp ecosystem. For more
information please visit www.jushico.com or our social
media
channels, Instagram, Facebook, Twitter and LinkedIn.
Forward-Looking Information and
StatementsThis 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 condition, but
instead represent only the Company’s beliefs regarding future
events, plans or objectives, many of which, by their nature, are
inherently uncertain and outside of the Company’s control.
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 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 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 Filing Statement dated December 5, 2019 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.
For further information, please contact:
Investor RelationsMichael PerlmanExecutive Vice
President of Investor Relations and
TreasuryInvestors@jushico.com(561) 453-1308
Media Contact Ellen Mellody MATTIO
Communications Ellen@Mattio.com (570) 209-2947
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