Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, announced it has closed its previously announced acquisition of OhiGrow, LLC, one of 34 licensed cultivators in Ohio, and Ohio Green Grow LLC (collectively, “OhiGrow”), for total consideration of $5.0 million in cash, inclusive of an approximately 10,000 sq. ft. facility and 1.35 acres of land (the “Acquisition”). OhiGrow will complement the 8,000 sq. ft. state-of-the-art Ohio medical cannabis processing facility located in Columbus, OH (“Processing Facility”) that has recently commenced operations, to which Jushi provides operational and consulting services. OhiGrow is expected to supply biomass to the Processing Facility to create manufactured medical marijuana products, including Jushi’s suite of permissible branded products, to be sold at licensed medical marijuana dispensaries throughout Ohio.
“This is a substantial step forward in our plan to scale our footprint and vertically integrate in the Ohio medical cannabis market,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With the new processing facility being operational, we are well positioned to supply high-quality medical cannabis products to Ohio patients. We look forward to solidifying our presence in this rapidly growing market, as well as working together with patients, local regulators, and our peers to develop a robust, successful cannabis market in Ohio.”
OhiGrow’s facility is located in Toledo, OH, approximately 100 miles or 2.5 hours from Columbus, OH. To date, approximately $4.5 million has been invested in the OhiGrow building, equipment, and land by the previous owners. There is an additional 15,000 sq. ft. of available vacant space on the property, which can be further developed. OhiGrow holds a Level II cultivation license from the state and has the right to apply for the regulatory approvals necessary to expand the facility’s cultivation area, ultimately up to the maximum 9,000 sq. ft., which is currently permitted under OhiGrow’s Level II cultivation license.
Ohio is the seventh largest state in the U.S., with approximately 11.7 million residents. The Ohio medical cannabis program is a limited license market with distinct licenses for cultivation, processing, and retail. As of July 9, 2021, the Ohio Medical Marijuana Control Program reported 207,105 registered medical patients. As reported by the Ohio Medical Marijuana Control Program, from April 2019 through July 5, 2021, the state generated approximately $464 million in total medical cannabis product sales.