Multistate cannabis producer Jushi Holdings Inc.
It represents the firm’s first foray into retail and it has high hopes for its ability to flourish in the lucrative Californian cannabis market. Jushi is paying $6 million in cash and issuing $6 million worth of 8% secured notes to get the deal done.
The dispensary is located off the I-8 Freeway and it has the ability to offer delivery in San Diego and neighbouring cities. It is licensed for medicinal and recreational cannabis sales.
Jushi aims to eventually have five retail sites and distribution, cultivation and processing licenses within California.
The Golden State is the world’s leading cannabis market, as it has a population of 40 million people, a high GDP per capita and a long history of legal marijuana use. If it were its own country, California would have the world’s fifth-largest economy.
There are 1.4 million people living in San Diego and it receives 35 million visitors per year. The city has allowed for a total of 36 cannabis licenses, of which 19 have been issued and 17 are operational.
Jushi believes it can secure a strong share of the cannabis market in the city and target communities further afield through a delivery service.
“Our partners in San Diego have built a fantastic store with a loyal customer base, which offers consumers a wide variety of high-quality products, is easily accessible off the highway and offers a well-located springboard for future delivery to San Diego and neighboring cities,” said Jushi chief executive and chairman Jim Cacioppo.
He added that his firm will pursue similar partnerships in California going forward as it targets expansion in the state. He said the Golden State has a “very sizable addressable market” that is larger than Canada.
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