Jushi Holdings Inc. Announces Significant Expansion of Pennsylvania Cultivation Facility

Company to triple grower-processor’s canopy from ~33,000 sq. ft. to ~98,000 sq. ft. in fast growing market

Increase total facility size from ~90,000 sq. ft. to ~160,000 sq. ft.

BOCA RATON, Fla., Nov. 23, 2020 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, announced plans to nearly double the square footage of its subsidiary’s grower-processor facility (“the Facility”) in Scranton, Pennsylvania from approximately 90,000 sq. ft. to more than 160,000 sq. ft. in a phased expansion. The majority of the approximate 70,000 sq. ft. expansion project will be focused on increasing the Facility’s canopy space, which upon completion will nearly triple to approximately 98,000 sq. ft. The first phase of the expansion is expected to come online in mid-2021 and the final phase will be completed by the second quarter of 2022. In total, Jushi expects to invest approximately $50 million on the expansion project, which is expected to create over 100 new jobs in the Scranton area. Jushi (through its subsidiary Pennsylvania Medical Solutions, LLC), will work with Innovative Industrial Properties, Inc. (through its subsidiary IIP-PA 1 LLC) to partially finance the expansion project via an upsize to the existing lease agreement between the parties. The expansion project is subject to the Company’s successful completion of certain milestones, including receipt of all local and state approvals and permits, and the finalization of a mutually agreed lease amendment with Innovative Industrial Properties Inc. related to the Facility.

“The medical cannabis market in Pennsylvania is rapidly growing and with our products in high-demand, this investment will significantly expand our cultivation capacity and market share,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “This is a robust operating environment and with the market intelligence gained through our eight currently operating BEYOND / HELLO retail dispensaries, we believe that patient demand for high-quality, medical grade cannabis products is still far from being satisfied. With the phased build out, the support of our financing partner Innovative Industrial Properties, Inc., and our strong balance sheet with ample liquidity, we expect to remain fully funded to operating cash flow positive, including our likely investment beyond Innovative Industrial Properties, Inc.’s support. We believe that by investing in the expansion of our grower-processors, we will generate the greatest potential return for Jushi shareholders.”