Jushi Holdings Inc. (NEO: JUSH.B) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, today announced the closing of the sale of its 16.5% ownership interest in Gloucester Street Capital ("Gloucester"), the parent company of Valley Agriceuticals and owner of one of ten New York licensed medical cannabis operators. Jushi previously purchased its 16.5% interest in Gloucester in February 2018 for US$5 million in cash. The sale is part of the Cresco Labs Inc.'s (CSE: CL) (OTCQX: CRLBF) acquisition of Gloucester.
Jushi received the following consideration for the sale of its 16.5% interest: US$5.3 million in cash and equivalents plus a further up to US$1.6 million cash under an earn-out, approximately 1.44 million shares of Cresco Labs, 331,000 Cresco warrants with an exercise price of US$4.24, plus additional contingent consideration. The approximate market value of cash and securities to be received by Jushi for the sale of its 16.5% interest has a total value of approximately US$15 - 20 million (depending on the contingency payouts). The contingent consideration, available to all Gloucester shareholders and paid in Cresco equity, is tied to both performance of the Gloucester operations as well as development of the New York market.
"We made this decision to monetize the investment made in Gloucester in the best interest of our shareholders, returning over three times our initial investment in approximately a year and a half," stated Jim Cacioppo, CEO and Chairman of Jushi. "New York remains a key market for Jushi. We maintain our New York State Industrial hemp-CBD processor license and are moving forward with our US$5 million investment in a high-tech hemp processing operation facility In New York with approximately 65,000 square feet."
About Jushi Holdings Inc.
We are a globally focused cannabis and hemp company led by an industry leading management team. In the United States Jushi is focused on building a multi-state portfolio of branded cannabis and hemp-derived 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 and hemp ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
