Jushi Holdings (JUSH.C) closed its acquisition of Ohio-based cultivators, OhiGrow and Ohio Green Grow, for $5 million in cash, including a 10,000 square foot facility and 1.35 acres of land, according to a press release.
OhiGrow will add to the 8,000 square foot Ohio medical cannabis processing facility in Columbus already which the company has already struck a deal for operational and consulting services. The deal is for OhiGrow to supply the processing facility with biomass so it can create make medical marijuana products, including Jushi’s branded products sold at dispensaries across the state.
“This is a substantial step forward in our plan to scale our footprint and vertically integrate in the Ohio medical cannabis market. With the new processing facility being operational, we are well positioned to supply high-quality medical cannabis products to Ohio patients. We look forward to solidifying our presence in this rapidly growing market, as well as working together with patients, local regulators and our peers to develop a robust, successful cannabis market in Ohio,” said Jim Cacioppo, chief executive officer, chairman and founder of Jushi.
Jushi is a vertically integrated cannabis company working on building a multi-state portfolio of branded cannabis products, generally through select, accretive acquisitions.
The facility they’re getting is located in Toledo, Ohio, which is approximately 100 miles or a two and a half hour drive from Columbus. The total amount of bucks already put into the buildout by previous owners is $4.5 million, and it’s gone to equipment and land. There’s also another 15,000 square feet of vacant space on the property, which could be developed.
The pedigree on a license isn’t exactly what was in 2018 when cannabis was all the rage, but because OhiGrow has a state-issued level II cultivation license means they won’t have to go through the rigmarole of getting one. So that’s something. It also gives the right to apply for the approvals required to expand their cultivation area for up to 9,000 square feet, which is presently permitted under their license.
In terms of the market they’re involved in, Ohio is the seventh largest state in the United States with 11.7 million people. Its medical cannabis program is a limited license market with licenses for cultivation, processing and retail. It also has 207,105 patients registered, and the state generated $464 million in total sales.