Marijuana multistate operator Jushi Holdings revised downward the upfront payment for a deal to enter the Massachusetts market through the acquisition of vertically integrated Nature’s Remedy.
The upfront payment was originally announced as $100 million, but it came in 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.
- A $11.5 million unsecured three-year note.
- A $5 million unsecured five-year note.
According to a news 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.
Nature’s Remedy operates two retail stores in Massachusetts – in Millbury and Tyngsborough – as well as 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.
“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, said in the release.
The 2021 MJBizFactbook projects that recreational marijuana sales in Massachusetts will reach $1.1 billion-$1.4 billion this year, compared with an estimated $625 million-$775 million in 2020.