Jushi Acquires Franklin Bioscience and Subsidiaries, Gaining Rights to Operate 12 Medical Cannabis Dispensaries in Pennsylvania

On July 12, 2019, VCBeat (WeChat Official Account: vcbeat) learned that Jushi Holdings Inc., a global cannabis operator, had acquired all equity interests in Franklin Bioscience and its subsidiaries. The latter holds Phase I and Phase II dispensary licenses issued under the Pennsylvania Department of Health’s Medical Marijuana Program. This move will help Jushi consolidate its leadership position in Pennsylvania’s cannabis industry.

Jushi, founded in 2018, aims to become a leading player in the cannabis industry chain. Its mission is to create a healthy, benevolent, and harmonious integrated global community through high-quality cannabis and cannabis-derived products. This acquisition includes 100% membership interest ownership in four medical cannabis dispensary entities, each of which is authorized to operate three separate locations. These locations are strategically positioned primarily along interstate highways and major traffic corridors. This acquisition will enable Jushi to obtain the necessary licenses to operate up to 12 medical cannabis dispensaries at these sites.

“Our investments in Pennsylvania have enabled Jushi to rapidly solidify its leadership position in the limited-license states of the Northeastern United States. These acquisitions include two stores that are already operational,” said Jim Cacioppo, Chairman and CEO of Jushi. “Franklin currently holds two highly advantageous locations, along with an established brand and a loyal patient base in Pennsylvania. We are actively evaluating the sites of our remaining 10 stores in highly sought-after markets such as Philadelphia, Pittsburgh, and Scranton. Jushi is pleased to close this transaction, which represents a significant milestone for our shareholders as we expand our retail operations and capture substantial retail market share, particularly in Pennsylvania.”

It is understood that the planned store locations are in one of the most densely populated areas of Pennsylvania. Three of the four licenses permit storefronts in major cities such as Philadelphia and Pittsburgh, which together account for approximately 15% of Pennsylvania’s total population. As the fifth-most populous state in the United States, with around 13 million residents, Pennsylvania maintains strict regulations on cannabis and issues a limited number of medical marijuana licenses.

Pennsylvania’s medical cannabis market is projected to become one of the largest in the United States. According to Arcview Market Research, total sales in the Commonwealth exceeded $132 million in 2018, when the program commenced operations, and are expected to rise to over $360 million by 2022.

(Compiled by: Fan Xin)