– Transaction secures Vireo’s monetary future with out dilutive impacts to shareholders –

– Purchase value consists of $16.Three million in money and $17 million in future liabilities –

– Jushi receives 18-month possibility to purchase Equity in Pennsylvania Dispensary Solutions, LLC –

 

MINNEAPOLISJune 22, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO; OTCQX: VREOF), the science-focused, multi-state hashish firm with energetic operations in completely medical-only markets and licenses in 9 states and the Commonwealth of Puerto Rico, at the moment introduced that it has reached a definitive settlement with Jushi Inc, a subsidiary of Jushi Holdings, Inc. (“Jushi”) (CSE: JUSH) (OTCQX: JUSHF), to divest fairness in its subsidiary firm, Pennsylvania Medical Solutions, LLC (“PAMS”), for complete consideration of $37 million. The transaction is topic to regulatory approvals.

Pennsylvania Medical Solutions holds a allow for the cultivation and processing of medical hashish in the state of Pennsylvania. This allow was initially awarded to PAMS by way of a merit-based software course of in 2017. Based in Scranton, PAMS manufactures cannabis-based merchandise in a 90,000 sq. foot co-located cultivation and processing facility, which not too long ago underwent a major capability growth challenge in order to meet growing demand inside Pennsylvania’s burgeoning medical hashish market.

“This transaction secures Vireo’s capital position for the foreseeable future and will enable us to comfortably execute our fiscal year 2020 operating strategy and begin generating positive cash flow in the first half of next year without requiring any additional capital infusions,” stated Founder & Chief Executive Officer, Kyle Kingsley, M.D. “We’re especially pleased to achieve this milestone for shareholders without the dilutive impacts of other forms of financing, and we’re also very excited about the opportunities in front of us to re-invest a portion of these proceeds to increase scale in select markets where we see significant opportunities to improve revenue growth and future cash flow generation.”

The transaction’s complete consideration of $37 million consists of $16.Three million in money, $3.eight million in the shape of a four-year be aware with an eight p.c coupon price payable quarterly and $17 million in Right of Use liabilities related to long-term lease obligations. The transaction additionally consists of an 18-month possibility for Jushi to buy fairness in one other Vireo Health subsidiary, Pennsylvania Dispensary Solutions, LLC, for a further $5 million in money.

Vireo administration expects to make the most of a portion of the transaction proceeds for capital expenditures that can improve scale in its core markets of New YorkMinnesotaMarylandArizona, and New Mexico. These growth tasks are anticipated to considerably enhance the Company’s near-term income and profitability outlook, and administration anticipates discussing these growth tasks and different impacts of this transaction in extra element through the Company’s upcoming second-quarter earnings convention name in late August.

About Vireo Health International, Inc.

Vireo Health International, Inc. is a physician-led hashish firm targeted on constructing long-term, sustainable worth by bringing the most effective of medication, science, and engineering to the hashish business. With operations strategically positioned in early-stage, limited-license medical markets, Vireo manufactures pharmaceutical-grade hashish merchandise in environmentally-friendly greenhouses and distributes its merchandise by way of its rising community of Green Goods™ retail dispensaries and a whole lot of third-party places. Its present core medical markets of New YorkMinnesotaPennsylvaniaArizonaNew Mexico, and Maryland all have the potential to enact adult-use legalization in the subsequent three to 24 months, and two extra markets in Puerto Rico and Massachusetts even have potential for commercialization. Combined with its groups’ deal with driving scientific innovation inside the business and securing significant mental property, Vireo believes it’s nicely positioned to change into a world market chief in the hashish business. Today, eight of its 10 markets are operational with 13 of its 32 complete retail dispensary licenses open for enterprise. For extra details about the corporate, please go to www.vireohealth.com.

About Jushi Holdings Inc.

Jushi Holdings, Inc. is a globally targeted hashish and hemp firm led by an business main administration crew. In the United States, Jushi is targeted on constructing a multi-state portfolio of branded hashish and hemp-derived property by way of opportunistic acquisitions, distressed exercises and aggressive purposes. Jushi strives to maximize shareholder worth whereas delivering top quality merchandise throughout all ranges of the hashish and hemp ecosystem. For extra data please go to www.jushico.com or the Company’s social media channels on Instagram, Facebook, Twitter and LinkedIn.

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