Feuerstein Kulick represents Jushi Holdings Inc. in refinancing its Existing 1st Lien Credit Facility with US$48.5 Million Term Loan

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Aug 01, 2024, 12:02 ET

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- Feuerstein Kulick represented Jushi Holdings Inc. ("Jushi" or the "Company") (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator in the refinancing of its approximately US$53 million senior secured credit facility due December 31, 2024 through the issuance of a new US$48.5 million senior secured Term Loan (the "Term Loan") and use of approximately US$7.4 million from cash on hand, which includes fees associated with the refinancing.

The Term Loan was issued at a 2.0% original issuance discount and bears an interest rate of 12.25% per annum, payable quarterly. The Term Loan amortizes at the rate of 2.5% per quarter beginning 12 months after the closing date and matures on the earlier of 30 months from the closing date or 91 days prior to the maturity of the Company's existing Second Lien Notes due December 7, 2026. The Term Loan is guaranteed by certain current and future direct and indirect subsidiaries of the Company and secured by first priority liens on certain assets of the Company and certain of the Company's direct and indirect subsidiaries.

Investors providing the Term Loan to the Company received five-year Warrants at 40% coverage and with an exercise price per share equal to US$1.00 (the "Warrants"). The Warrants were offered and sold in a private placement only to U.S. Accredited Investors and/or Qualified Institutional Buyers in reliance on the registration exemption provided by Rule 506(b) of Regulation D under the U.S. Securities Act and/or Section 4(a)(2) of the U.S. Securities Act of 1933, as amended and similar registration exemptions under applicable state securities or "blue sky" laws.

Samantha Gleit and Daniel Rich of Feuerstein Kulick LLP served as debt counsel to Jushi on the transaction. Feuerstein Kulick LLP is a boutique law firm that represents clients in all aspects of the legal cannabis space, including investors, funds, leading technology and ancillary companies, brands, license holders, and operators.

Contact: [email protected]

SOURCE Feuerstein Kulick LLP