Jushi Holdings Secures $9.7 Million Through ERC Refund and Debt Financing

LOS ANGELES- Jushi Holdings Inc. a vertically integrated, multi-state cannabis operator, has bolstered its financial position by obtaining approximately $9.7 million through two strategic financial maneuvers.

Employee Retention Credit (ERC) Refund Proceeds

The company received $5.1 million by selling $6.0 million worth of ERC refund claims to a third party. This transaction provides immediate liquidity without diluting existing shareholders. Additionally, Jushi retains rights to a portion of any interest accrued on these claims up to the transaction date. The company still has $3.0 million in ERC refund claims pending with the Internal Revenue Service.

Issuance of Second Lien Notes

In a separate move, Jushi has secured binding subscriptions to sell $5.1 million in 12% second lien notes due 2026, expecting net proceeds of $4.6 million. These notes will be issued at a 10% original issuance discount and come with detached five-year warrants at 75% coverage. Notably, an entity affiliated with CEO James Cacioppo has subscribed for $3.7 million of these notes, while Denis Arsenault, a founder and significant equity holder, has subscribed for C$2 million.

These financial strategies aim to enhance Jushi’s liquidity, enabling continued investment in business operations and strengthening the company’s balance sheet.