Jushi Holdings Inc. Announces Update of Expansion Project at Pennsylvania Grower-Processor Facility
- The company is commencing its first phase of expansion and will expand the existing 89,000 square foot facility by 40,000 square feet upon completion
- Strengthens partnership with Innovative Industrial Properties, Inc. Provide additional real estate financing of $ 30.0 million
BOCA RATON, Fla., April 1, 2021 (GLOBE NEWSWIRE) – Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated multi-state cannabis operator, announced is conducting the first phase of its previously announced expansion project (the “Expansion Project”) at its Pennsylvania cultivation facility (the “Facility”) in Scranton, PA. The Company’s wholly owned subsidiary, Pennsylvania Medical Solutions, LLC (“PAMS”) has entered into an amendment to its existing lease with Innovative Industrial Properties, Inc. (“IIP”) (NYSE: IIPR) and has provided an additional $ 30 in financing Million dollar for the facility’s first phase of real estate development. The funds will be used to complete an expansion of the existing 89,000 square foot building and an approximately 40,000 square foot expansion of the facility to a total of 130,000 square feet. The first phase of the expansion, with an estimated budget of approximately $ 40 million, is expected to add approximately 26,000 square feet of canopy for a total of 45,000 square feet and is expected to be completed by the fourth quarter of 2021, subject to regulatory approvals.
PAMS is also in the design phase for the second phase of the planned expansion, which will expand the building by approximately 60,000 square feet and increase the total canopy to approximately 110,000 square feet. The company expects PAMS to begin the second phase of expansion expansion in the third quarter of 2021 with a revised preliminary budget of between $ 25 million and $ 30 million and an estimated completion date in the second quarter of 2022, pending regulatory approvals. The total estimated cost of the two expansion phases has increased from $ 50 million previously to $ 65-70 million as the company increased the size and scope of the planned expansion. The facility is expected to be approximately 190,000 square feet after both phases of construction are completed. In addition to these two planned phases of expansion, PAMS is evaluating and developing further expansion opportunities in the facility to meet patient needs and demand in the wholesale market now and in the future.
“We are excited to officially begin the first phase of expansion in our Pennsylvania subsidiary’s acreage,” said Jim Cacioppo, chief executive officer, chairman and founder of Jushi.
We continue to see strong growth in the Pennsylvania medical market. This expansion will allow PAMS to significantly increase canopy space and production capacity to consolidate the availability of its award-winning, high quality branded product suite for our two eleven BEYOND / HELLO ™ Medical Marijuana dispensaries as well as the wholesale market in approximately one hundred im Commonwealth operate medical marijuana dispensaries.
Jim Cacioppo, CEO, Chairman and Founder
This expansion is also expected to create over 100 new jobs and generate additional taxpayers’ money in the Scranton area. We appreciate the strong support of IIP as a long-term real estate capital partner who, together with us, provides strategic real estate capital at an opportune time for our further expansion in Pennsylvania.
The facility produces high quality, indoor grown flowers, extracts and concentrates and is strategically located within minutes of Interstate 81, Interstate 84 and the Pennsylvania Turnpike. This enables efficient distribution to the 111 pharmacies currently operating in the Commonwealth, including the eleven operating pharmacies of the company BEYOND / HELLO ™ pharmacies.
About innovative industrial properties
Innovative Industrial Properties, Inc. is a Maryland self-advised company focused on the acquisition, ownership and management of specialized industrial real estate that has been leased to experienced, state-licensed operators for their regulated medical cannabis facilities. Innovative Industrial Properties, Inc. has chosen to be taxed as a real estate mutual fund effective December 31, 2017. For more information, please visit innovativeindustrialproperties.com.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry-leading management team. In the US, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high quality products to all levels of the cannabis ecosystem. For more information, please visit jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
Original press release
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