Jushi U.S. Subsidiary to Acquire Remaining 25% Interest in Two Cannabis Dispensaries in Illinois
Jushi Inc became the 100% owner of two Illinois medical cannabis dispensaries that can each open an additional adult-use dispensary for a total of four retail locations
Illinois announced that total adult-use sales during its first month of legalization generated nearly $40 million in revenue
BOCA RATON, Fla., Feb. 7, 2020 /CNW/ -- Jushi Holdings Inc. ("Jushi" or the "Company") (CSE: JUSH) (OTCQX: JUSHF), a globally-focused, multi-state cannabis and hemp operator, today announced that its wholly owned subsidiary, Jushi Inc, has entered into an agreement to purchase the remaining approximately 25% interest in TGS Illinois Holdings, LLC ("TGSIH"), subject to approval from the Illinois Department of Financial and Professional Regulation. Jushi Inc currently owns approximately 75% of TGSIH, which through its operating subsidiary, TGS Illinois, LLC, owns and operates two cannabis dispensaries – one in Sauget, IL and one in Normal, IL, previously announced on January 30, 2020. The dispensaries are located at 2021 Goose Lake Road, Sauget, IL 62206 and 501 West Northtown Road, Normal, IL 61761.
Each of the 55 existing medical dispensaries in Illinois have the ability to add a second retail location as well as add adult-use to the dispensaries. Jushi Inc intends to exercise these rights with respect to the two existing dispensaries and have four dispensaries open and operating in 2020 as adult-use storefronts, subject to regulatory approvals. Since Illinois's adult-use legalization went into effect January 1, 2020, the Sauget, IL dispensary was approved by the Illinois Department of Financial & Professional Regulation ("IDFPR") to conduct adult-use sales. The Normal, IL dispensary is eligible and will seek similar IDFPR approval for adult-use sales.
"We remain encouraged by our strategic decision to enter Illinois given the State's recent announcement that cannabis sales totaled $39.2 million during its first month of adult-use legalization. As the sole owner of two medical dispensaries with the opportunity to turn adult-use as well as expand to four locations, we believe in our investment into the Illinois market and the demand that exists in this state. With our entry into Illinois, we continue Jushi's mission to expand across limited license states and municipalities coast-to-coast," said Jim Cacioppo, Chairman and CEO of Jushi.
Sauget is part of the "Metro East" area of Illinois (Eastern St. Louis Suburbs in Illinois) with a population of 702,597 according to the U.S. Census. The region is considered the second largest urban area of Illinois and St. Clair County, where Sauget is located, has a population of 261,059 according to U.S. Census. The area is known for its high traffic due to its proximity to restaurants, bars and nightlife. The current dispensary location is on the same commerce park as GCS Ballpark, home to the Gateway Grizzlies, a professional baseball team in the Frontier League.
Normal is adjacent to Bloomington and part of the Bloomington-Normal metropolitan area in central Illinois comprising a population of 170,000 according to the U.S. Census. Bloomington and Normal are commonly referenced together as "twin cities" in the state. The area is one of the major economic centers in central Illinois with State Farm and Country Financial both based in Bloomington. With the existing location and a second site in the area, Jushi will control two-thirds of the total dispensaries allowed in the Bloomington-Normal metropolitan area.
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.
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SOURCE Jushi Holdings Inc.
Released February 7, 2020