Jushi Holdings Inc. (OTCQX:JUSHF) (CSE:JUSH) has closed its agreement to acquire NuLeaf, Inc. together with its subsidiaries and affiliated companies, a Nevada-based vertically integrated operator, for $53.6 million. NuLeaf operates two high-performing adult-use and medical retail dispensaries in Las Vegas and Lake Tahoe in addition to a 27,000 sq. ft. cultivation facility in Sparks, and a 13,000 sq. ft. processing facility in Reno, Nevada. NuLeaf also owns a third licensed retail dispensary located directly on Las Vegas Boulevard, expected to become operational in Q2 2022 subject to regulatory approval and other conditions.
“We are excited to announce the closing of our third acquisition in Nevada, a milestone accomplishment for our team,” stated Jim Cacioppo, CEO, chairman and founder of Jushi Holdings Inc. “The acquisition of NuLeaf sets the tone for our growth plans in the state as we continue to scale and strengthen our operations in this limited license market. With our newly established vertically integrated footprint in the state, we look to gain market share of our brands and further capitalize on the significant opportunity in this market, aided by NuLeaf’s premier retail, cultivation and manufacturing assets. We look forward to the immediate revenue and EBITDA contribution this acquisition will bring as we fully integrate NuLeaf into our business.”
Jushi acquired 100% of NuLeaf’s operational dispensary assets as well as 100% of its cultivation and processing facilities for an upfront payment of $45 million, comprised of $15.75 million in cash, $13.53 million in subordinate voting shares of the company and a $15.75 million unsecured promissory note.
Jushi plans to fund the cash portion of the NuLeaf acquisition and the previously closed Apothecarium Nevada acquisition by drawing down on its $100 million senior secured credit facility. Following the drawdown on the acquisition facility, the company expects to have $35 million of capacity, not including the $25 million accordion feature.
The company has also agreed to issue up to an additional $8.6 million in an identical percentage combination of cash, company shares, and unsecured promissory note upon the occurrence or non-occurrence of the Las Vegas Strip Dispensary receiving the applicable regulatory approvals to commence operations, bringing the total potential consideration for the acquisition paid by the company to $53.6 million. The purchase price is expected to represent a multiple of approximately 4.1x NuLeaf’s projected Q4 2022 annualized EBITDA, which includes the opening of the Las Vegas Strip Dispensary and before accounting for further expansion opportunities at the Sparks, NV, facility.
James Cacioppo CEO, chairman and founder of Jushi Holdings Inc., will be one of the speakers at the Benzinga Cannabis Capital Conference in Miami. There’s still time to sign up for the event that will host many top names in the cannabis industry. Click here for more info.
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