Jushi Holdings Inc, a leading hemp and cannabis operator in multiple U.S. states has recently announced the end of the agreement to buy a medicinal and operational adult-use dispensary located in San Diego, California.
The agreement had been signed in the third quarter in the year 2019 and it involved Jushi buying about seventy-five percent equity as well as voting interest within the San Diego dispensary, subject to the working capital and various other customary adjustments. The acquisition was to be done for about $12 million.
Apparently, the closing of the transaction had been subject to various customary and regulatory closing conditions and had been first scheduled for the completion by the end of the year 2019. The company notified the sellers of San Diego dispensary in April 2020 that they had been in breach of the agreement and also had about 30 days to treat the breaches otherwise the firm shall end the agreement.
The sellers gave a response on 21 April 2020 that haven’t breached the agreement and even alleged that the company shall be in breach for not having closed the transaction. As of recent, the sellers have not cured any breaches to the agreement. The decision to end the agreement effective as soon as possible had been made by Jushi keeping in mind the best interest of the firm as well as the shareholders.
Jushi’s Chief Executive Officer and Chairman, Jim Cacioppo stated that the company shall continue to pursue its M&A opportunities in a restricted license jurisdiction in California, that stands in line with the firm’s core business as well as the growth strategy. Jushi is expecting to close down on the definitive agreement made in Santa Barbara for about one of the three dispensary licenses within the city in the third quarter of the year 2020.
Cacioppo also added that a subsidiary of Jushi had received approval for delivery and retail permit within Culver City in California during the previous year.