Skip to main content

Jushi Holdings Inc. Announces $15.25 Million Debt Financing Led by Insiders and Existing Shareholders

Written by Customer Service on . Posted in Public Companies.

Insiders and Existing Shareholders Have Committed the Majority of the New Capital
A Portion of the Proceeds Will be Used to Acquire a Pennsylvania Grower-Processor Permit HolderBOCA RATON, Fla., June 22, 2020 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, today announced the receipt of binding subscriptions totaling approximately US$15.25 million for the issuance of 10% senior secured notes (“Notes”) and warrants to acquire subordinate voting share (the “Warrants” and collectively, the “Offering”), of which $12.35 million has been received.1 The Company also received non-binding indications of interest for up to an additional US$10 million of financing.  The Offering is expected to close on or before the date that the previously announced acquisition of a Pennsylvania grower-processor permit holder is completed. The Company intends to use US$15 million of the proceeds from the Offering to fund the cash portion of the acquisition.The Company expects all funds from the subscriptions to be received on or before July 11, 2020.  All Notes will mature on January 15, 2023 and will bear interest of 10.0% per annum payable in cash quarterly. Jushi’s obligations under the Notes are secured by the assets of Jushi and certain of its subsidiaries (subject to certain exclusions) and are also guaranteed by certain subsidiaries of the Company and rank pari passu with the currently outstanding 10% senior secured notes of the Company.  In connection with the Offering, the purchasers of the Notes will also receive Warrants to acquire subordinate voting shares of the Company at 75% coverage with an expiry date of December 23, 2024, at an exercise price equal to US$1.25 (~CAD$1.70 as of 6/19/20).  The Warrants contain a cash-less exercise (net settlement) option available 12 months after issuance.Jushi Chairman & CEO Jim Cacioppo subscribed for US$1.5 million of the Notes with other insiders subscribing for US$3.35 million of the Notes.In connection with the Offering, the Company formed a special committee of independent directors of the board of directors of the Company (the “Special Committee”), comprised of Stephen Monroe and Peter Adderton, to set, review, negotiate and approve of the terms of the Offering.  The Special Committee engaged AltaCorp Capital Inc. to provide its opinion that the terms of the Offering were fair, from a financial perspective, to the Company.This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful.________________________
1$8.3 million in subscriptions have closedAbout Jushi Holdings Inc.
 We are a globally focused cannabis and he

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.