Jushi Expands Into Virginia with $16m Dalitso Purchase

Aspiring multistate cannabis producer Jushi Holdings Inc. has continued its ambitious expansion drive by entering the Virginia market with a $16 million investment in Dalitso LLC.

Virginia expanded its medical cannabis program in 2018 and it has issued conditional approval to five firms seeking to cultivate, process, and dispense marijuana within the state. Dalitso is one of them and Jushi has now agreed to acquire a 62% stake in the company, which is developing a facility in Prince William County, near Manassas.

It follows last week’s announcement about Jushi’s decision to invest $12 million in its first dispensary, located in San Diego, California.

The firm is targeting operations in Oregon, California, Nevada, Arizona, Colorado, Missouri, Illinois, Ohio, Pennsylvania, New York, New Jersey, Maryland, Virginia, Massachusetts, Rhode Island, Georgia, and Florida.

“As we expand our geographic footprint, we are committed to making the highest quality investments and entering into the highest quality partnerships in the most ideal locations,” said Jim Cacioppo, chief executive and chairman at Jushi. “We look forward to working closely with the Dalitso team to develop high quality medical cannabis products for the patients of Northern Virginia.”

To get the deal, it is paying Dalitso $7.8 million in cash, $4.2 million in subordinate voting shares of the company and $4 million in promissory notes.

The Virginia Board of Pharmacy has divided the state into various Health Service Areas, and Dalitso has secured preliminary approval to operate within the area containing two of Virginia’s most densely populated counties, Fairfax and Prince William.

That should allow it to target 2.4 million people, equivalent to 28.2% of the state’s population.

Dalitso president Farzana Kennedy believes the finances provided by Jushi will allow it to thrive within the state.

Last month, Jushi agreed to a $63 million deal to acquire interests in Pennsylvania medical marijuana dispensary permit holders, while it also completed a reverse takeover of Tanzania Minerals Corp.

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