Earlier this month, we highlighted Jushi Holdings Inc. (“NEO: JUSH.B”) as an emerging leading US cannabis company and this is an opportunity that we are excited about given Jushi’s recent listing on the NEO Exchange.
When looking at the Jushi opportunity, we see a company that has incredible growth prospects and that is levered to some of the most exciting markets in the US. Over the next year, we expect to see the company enter new cities and states and expect this to be a major catalyst for growth.
One of the most exciting aspects of the Jushi story is related to its expanding US footprint. Jushi is in the process of securing cannabis operations in California, Virginia, Pennsylvania, Ohio, and Nevada as well as additional states. Additionally, its subsidiary, Sound Wellness Holdings, has an industrial hemp processing license in New York and is preparing to build out a significantly large processing facility.
Jushi is led by a management team that has a remarkable track record when it comes to creating value and this has played a key role in the company’s ability to focus on some of the most attractive markets in the US. From California to New York, we believe that Jushi is well positioned in some of the best markets when it comes to a branding standpoint. If you look at these two markets alone, you will notice that the combined population is much larger than all of Canada and we find this to be an important aspect of the story.
A US Cannabis and Hemp Growth Story
During the last year, Jushi has been able to significantly advance its story by executing on a series of inorganic and organic growth initiatives. We are impressed with the assets that the company has been in the process of acquiring since inception and believe that the management team has been ahead of the curve when it comes to identifying (and acquiring) leading cannabis brands.
Currently, Jushi is targeting several potential acquisitions across the US. In California, the largest market in the US, the company has binding agreements in place for 3 retail locations. Furthermore, Jushi is targeting several acquisitions in this market, several of which are handpicked cannabis retail operations with the potential for delivery capabilities as well as licenses for distribution, cultivation and processing. Based on the track record of its previous acquisitions, we are confident that the management team is going to make a major splash in this market and will monitor how the team is able to execute.
The hemp market represents a great opportunity and Jushi has been working to expand its position in this market. We are favorable on the growth prospects associated with the acquisition of Mend and we expect this acquisition to quickly prove to be accretive. Mend recently launched a full spectrum CBD – hemp-derived product line. Additionally, Jushi is building out the formation of its hemp-centric subsidiary, Sound Wellness Holdings, Inc. and has plans to construct a state-of-the-art hemp processing facility with the completion of this project being a potential catalyst.
Another acquisition that we are favorable on was of the trademarks of The Clinic™, The Clinic Consulting Services™, The Bank™ and The Lab™ as well as, subject to certain limited exceptions, intellectual property derived from the operations of The Clinic™ Colorado. We recently visited The Clinic™’s Denver based dispensary and were beyond impressed with the quality of the products. This sophisticated IP will complement Jushi’s expanding platform, and we are encouraged by the growth prospects associated with this acquisition.
Led by a Proven Management Team with Diverse Skill Sets
One of the most attractive aspects of the Jushi story is related to the strength of the management team. When you look at the executives that make up the company’s management team, you will notice that it is comprised of a diverse mix of professionals that include some of the most seasoned cannabis and non-cannabis executives.
Jushi’s CEO and Chairman, Jim Cacioppo is a proven leader and we are excited about where the business is heading under his leadership. Prior to founding Jushi, Jim spent over two decades managing the business and allocating capital in senior management positions at several large hedge funds. Jim is Co-Founder and Managing Partner of One East Partners ($2.3 billion (peak AUM)). Previously, Jim served as President and Co-Portfolio Manager of Sandell Asset Management ($5.0 billion (peak AUM)) and Head of Distressed Debt for Halcyon Management, a global investment firm with over $9.0 billion in assets. Jim earned his BA from Colgate University and his MBA from Harvard University.
Jushi’s President, Erich Mauff brings significant financial and managerial leadership experience. Erich spent over 20 years at Deutsche Bank, first heading Capital Markets & Treasury Solutions group, then serving as Managing Director and Vice Chairman of Corporate Finance North America. Erich’s fierce work ethic extends beyond even his executive experience—in 1992, Erich competed in the Olympics for South Africa’s Men’s rowing team. Erich earned his BA from Brown University.
Jushi’s COO, Max Cohen has significant experience in the cannabis industry and was a founding board member pre-IPO of Green Thumb Industries (GTI), a leading multi-state-operator in the United States. Max serves as Founder and CEO of The Clinic™ Colorado, a large-scale cannabis retailer. Max is a founding member of the Marijuana Industry Group, and a member of the Board of Directors for the National Cannabis Industry Organization (a national marijuana lobbying and policy organization).
Jushi’s EVP of Operations, Ryan Cook represents a key player on the team. Prior to joining Jushi, Ryan served as COO of the Clinic™ for the last 10 years overseeing all aspects of day-to-day operations including oversight of all retail, cultivation and manufacturing facilities. Ryan played a major role in the success of The Clinic™ and we are glad to see that he will be helping create value for Jushi shareholders.
Another key player on the team is Emily Cohen who will serve as Jushi’s VP of New Market Development. She brings diverse experience in management, business development, acquisitions, government relations, real estate entitlements and project management to her role and we are excited about what she brings to the team. Emily previously oversaw the identification, implementation and management of new business opportunities and strategies for The Clinic™ Consulting across the US and we find this to be significant.
Jushi’s ability to retain former management members from the assets that it has acquired has played an important role in the seamless transition of the assets and the success of the business. Over the next year, we expect these assets to prove to be accretive and will monitor how the team is able to expand across the US. When we analyze a cannabis business, the most important thing to look into is the management team and this is an area where Jushi excels.
An Emerging Opportunity To Be Aware Of
Earlier this year, Jushi commenced trading on the NEO Exchange under the symbol (“NEO: JUSH.B”) and this is an opportunity that we will be closely monitoring. The company has an attractive operating structure and is levered to some of the most significant markets in the US. From cannabis to hemp, Jushi plans to be a leader in the US market and we are favorable on the company’s opportunity to do just that.
When looking at Jushi, you will notice that the company has an attractive operating structure and is levered to some of the most exciting verticals in the cannabis industry. We are impressed with what the team is accomplishing and are favorable on the growth prospects with the associated assets.
Over the next year, we expect Jushi to record significant growth and the company is well capitalized and well positioned to take advantage of inorganic and organic growth opportunities. To stay up to date with the leading US cannabis company, please reach out to email@example.com.
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