Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF) has revealed a proposed debt financing plan.
The company announced the receipt of binding subscriptions to date totaling approximately US$68 million for the issuance of 12% second lien notes and warrants to purchase subordinate voting shares in a private offering.
The US multistate operator said it plans to use the net proceeds to redeem its outstanding existing 10% senior secured notes due January 2023. Additional funds may be used for general corporate purposes, including working capital, capital expenditures and potential acquisitions, according to a release.
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Under the terms of the offering, Jushi may issue additional notes on the same terms, subject to market conditions and investor interest. The notes will mature four years from the date of issuance, and will bear interest of 12% per year, payable in cash quarterly.
The notes will be guaranteed by some of Jushi’s direct and indirect domestic subsidiaries and secured by second priority liens on certain assets of the company and certain direct and indirect domestic subsidiaries.
Purchasers of the notes will also receive four-year warrants at 50% coverage with an exercise price to be determined at closing, according to a release.
Jushi expects to close the offering in late November or early December of this year.
Entities associated with Jim Cacioppo, Jushi’s CEO, subscribed for US$3.0 million of the notes, while Denis Arsenault, a significant stockholder, subscribed for US$13.4 million.
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