Jushi Holdings (OTCQX:JUSHF), a vertically integrated, multi-state cannabis operator, announced on Wednesay that it has closed a non-brokered private placement offering of an aggregate of 2,717,392 subordinate voting shares at $3.68 per share to Graticule Asset Management Asia for gross proceeds of $10 million.
Proceeds of the offering are expected to be used for potential strategic acquisitions and general corporate purposes.
“We are extremely encouraged by the support we continue to receive from GAMA, a well-established asset manager,” said Jim Cacioppo, Jushi’s CEO, chairman and founder.
“Their confidence reiterates the strength of our differentiated corporate strategy, industry-leading organic revenue growth rate, geographic footprint leveraged to medical states evolving to adult-use, as well as the strength of our management team. This investment will support the expansion of our grower-processor facilities and our continued pursuit of accretive acquisitions.”
Cacioppo added, “Given recent stock market volatility, we are seeing a tremendous amount of deal opportunities, driven by recent license issuances and pending processes in Illinois and Ohio, several broken deals and auctions, our current pipeline, and an increase in the number of distressed companies. We are well-positioned with a strong balance sheet and cash holdings which exceed our anticipated capex plans and continue to have access to additional sources of financing to pursue strategic expansion opportunities.”
Cacioppo noted that in addition to Jushi’s acquisition facility, pro forma for the Nevada transactions closing, the company will have approximately $63 million of available capacity. “We are confident that our disciplined approach to capital allocation, along with our industry-leading M&A track record will result in significant long-term value for our shareholders as we continue to scale the business.”
Jushi shares were trading up +0.08% at $2.56 per share at the end of the trading day Wednesday.