- Jushi (CSE:JUSH) has terminated its previously announced acquisition of a 75 per cent interest in a San Diego dispensary
- The company would have acquired the stake for approximately C$16.84 million
- However, the deal has now fallen through because of an alleged breach of agreement on behalf of the sellers
- The company also announced the commencement of adult-use cannabis sales at its dispensary in Normal, Illinois
- Jushi (JUSH) is up 0.81 per cent to $1.25 per share, with a market cap of $109.32 million
Jushi (CSE:JUSH) has terminated its previously announced acquisition of a 75 per cent interest in a San Diego, California dispensary.
The company’s current focus is on building a multi-state portfolio of branded cannabis and hemp-derived assets, largely through “opportunistic” acquisitions.
Jushi originally announced the stake acquisition agreement in the third quarter of 2019. Under the agreement, Jushi would have acquired the stake in the operational adult-use and medicinal dispensary for approximately C$16.84 million.
However, the company notified the sellers on April 8, 2020, that they were in breach of the proposed deal. Consequently, Jushi gave them 30 days to rectify their actions or the company would terminate the acquisition.
The sellers responded on April 21, disputing the breach of terms. As such, Jushi acted “in the best interest of the company and its shareholders,” and withdrew from the arrangement.
Jushi’s Chairman and CEO, Jim Cacioppo, said that the company will continue to pursue acquisition opportunities in limited license jurisdictions within California that align with its 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. Also, 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,” he added.
In a separate announcement today, the company marked the commencement of adult-use cannabis sales at its dispensary in Normal, Illinois.
The outlet operates under Jushi’s BEYOND/HELLO retail brand. It currently stocks flower, pre-rolls, extracts, edibles, cartridges, disposable pens, tinctures, topicals, capsules, pills and various accessories.
Jim noted that two additional storefronts are expected to open in Illinois by the end of the year. Further outlets are expected to open in key markets, such as Pennsylvania and Virginia.
Jushi (JUSH) is up 0.81 per cent and trading for $1.25 per share at 12:14pm EDT.