Jushi Holdings Inc. Signs Definitive Agreement to Acquire Agape Total Health Care Inc., a Pennsylvania Medical Marijuana Dispensary Permit Holder
Upon closing, Jushi will acquire a majority interest in a Pennsylvania Dispensary Permittee which is opening three retail locations in the Philadelphia region, Reading and Pottsville. Jushi's future involvement in retail locations will be 15 in Pennsylvania, a key east coast limited license medical market.
BOCA RATON, Fla., Sept. 16, 2019 /CNW/ -- Jushi Holdings Inc. ("Jushi" or the "Company") (NEO: JUSH.B), a globally- focused, multi-state cannabis and hemp operator, has signed a definitive agreement to acquire 80% of the economic and voting interests in Agape Total Health Care Inc ("Agape"), pending applicable regulatory approvals. Through the acquisition, Jushi will acquire a majority ownership in Agape, a Pennsylvania Dispensary Permittee. Agape plans on opening three retail locations in the Philadelphia region, Reading and Pottsville.
"With the closing of the Agape transaction, Jushi will have completed its participation in the maximum number of permitted retail locations in Pennsylvania, a key limited license market on the East Coast," stated Jim Cacioppo, CEO and Chairman of Jushi. "Upon closing of this transaction, we will operate five retail locations under the BEYOND/HELLO brand with a plan to open four more during the fourth quarter of 2019. All of these locations and the additional six to be opened are located in densely populated, high traffic communities. Quickly achieving a strong presence in a limited license medical market such as Pennsylvania continues to execute our broader retail strategy."
Highlights of the Planned Agape Dispensary Locations:
Philadelphia is the largest city in Pennsylvania, and the sixth-most populous U.S. city according to the U.S. Census Bureau. The city has evolved into an educational and economic center with many top universities, medical schools, and colleges located in the area. This dispensary will be strategically located in a high traffic area in downtown center city close to patient healthcare centers.
Reading is one of the largest cities in Berks Country with a population of approximately 90,000 residents and located approximately 45 miles from downtown Philadelphia. This dispensary will be one of only four dispensaries located in Reading.
Pottsville is a historic city centrally located in Pennsylvania and home to America's oldest operating brewery. This dispensary will be the first dispensary located in the Pottsville area.
Recently, Jushi announced the closing of the acquisition of 100% membership interests in Franklin Bioscience - Penn LLC and its subsidiaries ("FBS"), allowing for 12 medical marijuana dispensaries in the Commonwealth of Pennsylvania. Under the BEYOND/HELLO brand, Jushi will operate the Agape and FBS dispensaries (allowing for up to 15 dispensaries in the Commonwealth), which is the current maximum allowable number of permits that can be operated by one company or its affiliates in Pennsylvania, outside of the Clinical Registrant program.
Russell Kuchta, President of Agape, stated "my partner, Tom Huzela and I are pleased to begin working with the Jushi team, leveraging their core operational expertise to open our three dispensary locations quickly in one of the most attractive regions in the Commonwealth."
Pennsylvania is the fifth largest state in the country with approximately 13 million residents, operating with a high barrier of entry from a limited number of medical marijuana permits. Pennsylvania's medical cannabis market is expected to become one of the largest markets in the U.S. Recently, Pennsylvania updated its Qualifying Medical Conditions to include anxiety and Tourette Syndrome, which is expected to accelerate the increase in registered patients (currently 180,000 as of August 2019) in the Commonwealth.
Under the terms of the transaction, Jushi will pay an undisclosed amount of stock, notes and cash for the acquisition.
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 work-outs 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.
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SOURCE Jushi Holdings Inc.
Released September 16, 2019