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.
