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 – 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.
Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi said: “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.”
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.
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, involve estimates, projections, plans, goals, forecasts and assumptions that may prove to be inaccurate. As a result, actual results could differ materially from those expressed by such forward-looking statements and such statements should not be relied upon. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or may contain statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “will continue,” “will occur” or “will be achieved”.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has certain expectations and has made certain assumptions. Expectations, assumptions and risk factors are more fully described in the Company’s Management, Discussion and Analysis for the three months ended September 30, 2020, and other filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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For further information, please contact:
Investor Relations Contact:
Executive Vice President of Investor Relations and Treasury
Released December 21, 2020