Jushi Holdings Inc. Provides Update on Acceleration of Warrants Expiry Date
Acceleration of warrants results in approximately USD$32 million in gross proceeds to the Company
BOCA RATON, Fla., Dec. 21, 2020 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, provided an update on its previously announced acceleration of warrants expiry date issued in conjunction with April and June 2018 private placements (the “Acceleration”). The Company has completed the Acceleration which resulted in the issuance of approximately 16 million additional subordinate voting shares and cash proceeds of approximately USD$32 million to the Company.1 As of today, the Company had approximately $91 million in cash and short-term investments and approximately $93 million in total debt, excluding leases and property, plant and equipment financing obligations.
I’m pleased with the participation in our warrant acceleration program which has positioned Jushi with an exceptionally strong and well capitalized balance sheet. We plan to continue our strategy to prudently deploy capital through targeted investments in high-quality, limited license markets where we can generate the strongest returns for our shareholders.
Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi
On November 24, 2020, the Company announced it exercised its right to accelerate the expiry date of subordinate voting share purchase warrants (the “Warrants”) issued to participants in the Company’s previously-announced private placement offerings, which closed in April 2018 and June 2018 (the “Offerings”). Participants had thirty days from the date of notice of the Acceleration to exercise their Warrants, and as of December 18, 2020, all eligible participants exercised their Warrants.
Each Warrant issued in conjunction with the Offerings entitled the holder to purchase one subordinate voting share in the capital of Jushi for a period of 24 months from June 10, 2019 (i.e. June 10, 2021) at an exercise price of USD$2.00 per share, subject to adjustment in certain events. Jushi retained the right to require the acceleration of the expiry date of these Warrants if the Company’s twenty-trading-day volume-weighted-average-price (“VWAP”) on the Canadian Securities Exchange (CSE) exceeded USD$3.00 (“Accelerated Expiry Date”). This was achieved during the trading period from October 27, 2020 through November 23, 2020.
1 Includes an additional 1,000,000 of warrants accelerated at an exercise price of USD$2.25 per share issued in a private placement which closed in October 2018.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry-leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
