Marijuana multistate operator Jushi Holdings has finalized a $91.2 million deal to buy Massachusetts marijuana company Nature’s Remedy.
Jushi revised downward the upfront payment for a deal to enter the Massachusetts market through the acquisition of vertically integrated Nature’s Remedy.
Nature’s Remedy operates two retail stores in Massachusetts and a 50,000-square-foot cultivation and production facility in Lakeville. The facility has about 22,000 square feet of indoor flower canopy and extraction and manufacturing space.
Originally the upfront payment was announced as $100 million, but it ended up at $91.2 million when the deal closed.
Under terms of the agreement to acquire Nature’s Remedy, Jushi’s payment is made up of $40 million in cash, $34.7 million in stock, $11.5 million in an unsecured three-year note, and a $5 million unsecured five-year note.
According to a press release, Jushi paid an additional $2.9 million in cash to acquire excess inventory worth $17.5 million, though the goods are valued at $22.5 million at current wholesale prices.
Jushi also said it expects to issue up to 4.3 million fewer company shares.
“With its strong, defensible retail position and a scalable cultivation footprint, Nature’s Remedy offers significant opportunities for us to expand and grow our presence in this rapidly maturing adult-use market,” Jim Cacioppo, Jushi’s CEO, chair and founder, stated.