Multistate cannabis operator Jushi Holdings secured a $100 million credit facility with a 9.5% annual interest rate to bankroll expansion in the company’s core and targeted U.S. markets.
For the funding, Florida-based Jushi tapped a portfolio company of SunStream Bancorp, a joint venture sponsored by Sundial Growers, a Canadian licensed producer.
In a news release, Jushi said it intends to draw $40 million initially to fund the cash portion of its recently completed acquisition of Nature’s Remedy, a deal that allows Jushi to enter the Massachusetts cannabis market.
“Securing non-dilutive funding from Sunstream strengthens our balance sheet and positions us to aggressively pursue our national growth plans,” Jushi CEO Jim Cacioppo said in the release.
The CEO said the funding will allow Jushi to continue its expansion in existing markets, such as Nevada, Illinois, Ohio and California, as well as pursuing potential target markets like New Jersey and Maryland.
Once drawn upon, the SunStream loans will bear an annual interest rate of 9.5%. They will mature five years from the closing date.
Jushi will be able to make draws for 18 months and will have a two-year, interest-only period before partial amortization begins on a quarterly basis.
Jushi can increase the loan package by up to $25 million.
Shares of Jushi are traded on the Canadian Securities Exchange as JUSH.