Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, announced it has signed a definitive binding agreement to acquire 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 soon-to-be operational 8,000 sq. ft. state-of-the-art Ohio medical cannabis processing facility (“Processing Facility”), to which Jushi provides operational and consulting services. OhiGrow is expected to supply biomass to the Processing Facility to create manufactured medical marijuana products for sale into the wholesale market. The Acquisition, which is subject to regulatory approvals, is expected to close in Q3 2021.
“We are thrilled to expand our operations and solidify our footprint in the rapidly growing Ohio medical cannabis market through this planned Acquisition and move one step closer to vertical integration in this burgeoning market,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “With the tight restrictions on cultivation licenses and high barriers to entry in the Ohio market, this Acquisition is expected to rapidly establish Jushi’s presence in the market and secure a consistent and reliable source of high-quality medical cannabis.”
Mr. Cacioppo concluded, “We will continue to build scale and explore strategic opportunities to vertically integrate in Ohio, which may include potential retail opportunities. We are excited to further invest in Ohio’s cannabis market and look forward to broadening patient access to medical cannabis products across the state.”
OhiGrow is located in Toledo, OH, approximately 100 miles or 2.5 hours from Columbus, OH. The current owners have invested approximately $4.5 million in the building, equipment and land. 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 necessary approvals to expand the facility’s cultivation area, ultimately up to the maximum 9,000 sq. ft. currently permitted under the 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 February 28, 2021, the Ohio Medical Marijuana Control Program reported over 176,000 registered medical patients. As reported by the Ohio Medical Marijuana Control Program, from April 2019 through March 20, 2020, the state generated approximately $344 million in total medical cannabis product sales.