Multistate marijuana operator Jushi Holdings completed its acquisition of Vireo Health International’s cultivation and processing operations in Pennsylvania for $37 million as Jushi looks to maximize its footprint in the state’s fast-growing medical cannabis market.
To fund the purchase of Pennsylvania Medical Solutions, which included $16.3 million in cash, Florida-based Jushi recently closed on a $33.3 million debt financing.
Jushi already had a presence in Pennsylvania and, with a recent acquisition of Agape Total Health Care, is allowed to operate a maximum 15 dispensaries in the state.
But Vireo’s Scranton-based, 90,000-square-foot cultivation and processing facility was a missing piece for Jushi to meet the growing MMJ demand in the state – and to position itself for possible adult-use legalization in Pennsylvania.
The new Marijuana Business Factbook projects that Pennsylvania’s medical cannabis market will nearly double to $400 million-$500 million in sales this year and reach $1 billion in sales within three or four years.
Minneapolis-based Vireo, meanwhile, said the sale of its equity in Pennsylvania Medical Solutions will strengthen its capital position and enable it to comfortably execute an operating strategy that is focused on growth opportunities in Arizona, Maryland, Minnesota and New York.