Jushi Holdings Inc. Receives ~$14.4 Million Interim Arbitration Award
Arbitration Panel Rules in Favor of Jushi in a Breach of Contract and Breach of Implied Covenant of Good Faith Claims Against San Felasco Nurseries, Inc.
BOCA RATON, Fla., July 30, 2021 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced that the American Arbitration Association (the “Panel”) awarded $14,364,920.10 (the “Interim Award”) to Jushi FL SPV, LLC (“Jushi FL”), a subsidiary of Jushi Holdings Inc., in its dispute against San Felasco Nurseries, Inc. (“San Felasco”), a subsidiary of Harvest Health & Recreation, Inc. (“Harvest”). The Interim Award consists of $10,637,012 in damages, plus $3,727,908.14 in pre-award interest (accrued at a rate of $3,497.099 per day) and post-award interest at a rate of 12% per annum. The Panel of three arbiters also affirmed that Jushi is entitled to recoup attorneys’ fees from San Felasco, in an amount to be determined by the Panel.
The Interim Award is based on breach of contract and breach of implied covenant of good faith claims brought by Jushi against San Felasco in October of 2018. In its order, the Panel found that San Felasco improperly terminated its franchise agreements with Jushi FL without cause and in bad faith. San Felasco then sold its Florida cannabis business to Harvest, depriving Jushi of the royalties it would otherwise have realized. Following a final hearing in May of 2021, the Panel issued the Interim Award on July 29, 2021.
“I am very pleased that the arbitration panel has ruled in our favor,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “This is the right outcome and highlights the strength of our Company from a legal and business development perspective to successfully navigate through this complicated and highly regulated industry. We look forward to continuing to execute on our strategy to build the leading, vertically integrated operator by expanding our footprint and driving profitability in the markets where we currently operate.”
Jushi is represented by Wheeler Trigg O’Donnell LLP, in Denver. San Felasco is represented by Kasowitz Benson Torres LLP.
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”. The forward-looking information and forward-looking statements contained herein may include but are not limited to, information concerning the expectations regarding Jushi, or the ability of Jushi to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors.
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Released July 30, 2021