Jushi Holdings Raises $17.4 Million as Q2 Revenues Climb 74%
Florida-based cannabis and hemp firm Jushi Holdings has updated a previously announced debt raise, confirming that it has secured an additional $2.1 million in funding.
The company, which is in the process of acquiring Vireo Health’s cultivation and processing facilities in Pennsylvania, has brought in a total of $17.425 million to help fund the deal.
The transaction with Vireo is expected to close in August and will also require Jushi to take over a $17 million lease agreement with Innovative Industrial Properties. The entire deal for the 90,000 sq. ft. site is valued at $37 million.
In Monday’s news release, Jushi said it has received $16.3 million in cash as well as $1.1 million in additional binding subscriptions. The senior secured notes, which carry an interest of 10% per year, will mature on January 15, 2023.
The company also said it has “non-binding indications of interest” for upwards of $10 million in additional financing.
Jushi had previously announced a $15.25 million debt raise led by company insiders and existing shareholders. Chairman and CEO Jim Cacioppo has invested $1.5 million, while other insider and members of the management team have put up $3.475 million.
According to a separate release, Cacioppo, through various entities he controls, has acquired $11.5 million in 10% (non-convertible) notes this year. Together with other securities, he controls 29.29% of all issued and outstanding subordinate voting shares.
Jushi will open its eighth “Beyond/Hello” medical marijuana dispensary in Pennsylvania on Wednesday. The new store – the firm’s tenth in the U.S. -- is “the only dispensary located downtown in the heart of the Reading Downtown Improvement District,” a July 9 news release noted.
“Our plan is to continue broadening access for patients across the Commonwealth and we look forward to opening up new storefronts across the state in the future to further meet patient needs as well as drive value for our shareowners,” Cacioppo said.
Jushi currently owns 15 dispensary permits in Pennsylvania for its “Beyond/Hello” retail brand, the most permitted under state law, and has an 18-month option to buy three additional permits from Vireo Health for $5 million.
The company also recently shared its first quarter financial results, reporting revenue growth of 43%, to $8.6 million. Gross profits hit $4.2 million during the quarter, however Jushi also reported a net loss of $15.9 million.
The company said its second quarter revenue was $15 million, a 74% increase versus the first three months of the year.
“Our 43 percent quarterly revenue growth in first quarter was driven by strong sales at our Beyond/Hello stores in Pennsylvania and the acquisition of two Illinois dispensaries,” Cacioppo said.
“I’m encouraged by the continued momentum we have seen coming out of our second quarter results, where despite short-term headwinds such as the closure of two of our Philadelphia stores and several in-store initiatives aimed at prioritizing the health and safety of our employees, patients, and customers, we nearly doubled our sequential quarterly revenue growth rate,” he added.
Additional information can be found in the press releases linked below.