What was Jushi’s strategy behind entering Massachusetts?
Nature’s Remedy is a good example of our strategic, data-driven, analytical approach to acquisitions. We started looking at companies and building relationships in Massachusetts two to three years ago but had not come across a target that fulfilled our criteria (e.g., good company, solid team, expansion potential, vertical integration, sensible valuation). Instead, we focused on our expansions into PA, IL, and VA. Earlier this year, it became clear to us that market dynamics had moved in our favor and when we met Nature’s Remedy, we knew we had found the right partner.
Our entrance into Massachusetts expands our footprint into a seventh state where we operate cannabis assets and the third state where we have full vertical integration. Additionally, Nature’s Remedy operates in one of the fastest growing adult-use markets in the country, and fits into our strategy of entering limited license, underpenetrated, large adult-use markets.
Can you tell us a little bit more about the assets Nature’s Remedy brings to Jushi?
Nature’s Remedy operates two high-performing retail dispensaries in Millbury and Tyngsborough, along with a 50,000 sq. ft. cultivation and production facility in Lakeville, Massachusetts. The Lakeville facility’s flower canopy encompasses approximately 22,000 sq. ft., which Nature’s Remedy expects to expand to approximately 32,500 sq. ft. during the second half of 2021.
In addition to the currently planned expansion, Nature’s Remedy is also evaluating further expansion opportunities in either the existing Lakeville industrial complex or on ten acres of land owned by Nature’s Remedy in Grafton, MA. The Lakeville facility could potentially accommodate an additional 18,000 to 20,000 sq. ft. of flower canopy through the expansion into approximately 26,000 sq. ft. of adjacent space in the existing building. The ten acres of land in Grafton, MA, could accommodate a 35,000 to 40,000 sq. ft. facility, with approximately 18,000 sq. ft. of flower canopy.
Can you share any additional insights on Jushi’s approach to M&A?
Jushi is laser-focused on acquiring assets that can generate the greatest return on investment and where we can build defensible market positions. Our focus has been on identifying and executing on acquisition opportunities across the supply chain in limited license markets that complement our existing portfolio. We believe there is an opportunity to acquire assets within our current operating footprint that will allow us to become vertically integrated in most of the states we operate in today.
For example, we recently announced an acquisition of an operating dispensary in Las Vegas, Nevada. Nevada will be the fourth state where we are vertically integrated, accompanying Pennsylvania (by way of its affiliated subsidiaries), Virginia, and Massachusetts. We are also pursuing cultivation and retail licenses in Illinois and Ohio.