Florida-based multistate marijuana and hemp operator Jushi Holdings increased a debt financing announced in late July by roughly $18 million, citing strong demand from shareholders and management.
The debt financing, which was meant to fund Jushi’s $37 million purchase of grower-processor Pennsylvania Medical Solutions (PAMS) from Minneapolis-based MSO Vireo Health International, was previously worth $15.25 million
However, Jushi said Friday that the debt financing had closed on $33.3 million worth of subscription receipts, yielding $27.8 million in cash proceeds.
“This debt raise solidifies our balance sheet and provides ample liquidity to support our rapid expansion in the high-quality markets that we operate in today,” Jushi CEO Jim Cacioppo said in a news release.
The debt financing consists of 10% senior secured notes, maturing in January 2023, and warrants to acquire subordinate voting shares.
Cacioppo subscribed for $1.5 million worth of notes, and other insiders and management subscribed for $3.6 million.