BOCA RATON, Fla., May 10, 2020 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a globally focused, multi-state cannabis and hemp operator, announced the termination of an agreement to acquire an operational adult-use and medicinal dispensary in San Diego, CA.
Under the agreement that was signed in the third quarter of 2019, Jushi was to purchase seventy-five percent (75%) equity and voting interest in the San Diego dispensary – subject to working capital and other customary adjustments – for a price of approximately US$12 million. The closing of the transaction was subject to regulatory and other customary closing conditions and was initially scheduled for completion by the end of 2019. On April 8, 2020 the Company notified the sellers of the San Diego dispensary that they were in breach of the agreement and had 30 days to cure the breaches or the Company may terminate the agreement. Sellers responded on April 21, 2020 that they have not breached the agreement and alleged that the Company is in breach for not closing the transaction. As of May 9, 2020, the sellers had not cured the breaches to the agreement. Therefore, in the best interest of the Company and its shareholders, the decision was made for the Company to terminate the agreement effective immediately.
Jim Cacioppo, Chairman and Chief Executive Officer of Jushi commented, “We will continue to pursue M&A opportunities in limited license jurisdictions within California that align with our core businesses and growth strategy. Jushi expects to close on its definitive agreement in Santa Barbara for one of the three dispensary licenses in that City during the third quarter of 2020, and a Jushi subsidiary received approval for a retail and delivery permit in Culver City, California last year. We remain confident that we can expand our presence within California by targeting limited license markets with high barriers of entry.”
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.
