TORONTO, June 12, 2019 /PRNewswire/ - Cannabis Growth Opportunity Corporation ("CGOC", or the "Company") (CSE: CGOC), a cannabis focused investment corporation with both public and private cannabis holdings, is pleased to report that Jushi Holdings Inc. ("Jushi"), one of the private portfolio holdings commenced trading on the NEO Exchange Inc. ("NEO"), under the symbol "JUSH.B", on June 10, 2019, closing its first day of trading at a price of $3.20. The listing follows the successful completion of the previously announced reverse takeover ("RTO Transaction") of a Canadian public company, Tanzania Minerals Corp., by U.S.-based Jushi. The public company was subsequently renamed Jushi Holdings Inc., in connection with the RTO Transaction and the listing on NEO. Additionally, the Company raised approximately US$68.2 million through a brokered and non-brokered private placement.
Jushi seeks to be a leading vertically integrated multi-state cannabis and hemp operator managed by a team of recognized industry leaders with diverse finance and cannabis backgrounds in highly regulated and public markets whose interests are closely aligned with shareholders, regulators, legislators and consumers.
Concurrent with the RTO Transaction, Jushi closed the acquisition of intellectual property from The Clinic Consulting Services TM, The Bank TM and The Lab TM and its award-winning operations team for a combination of US$4,115,000 in cash and US$5,885,000 worth of shares in relation to this asset purchase. The Clinic Consulting Services TM owns trademarks, trade secrets and other proprietary intellectual information related to cannabis brands, while The Bank TM owns intellectual property to cultivation and genetics of over 150 different strains. The Lab's TM intellectual property consists of proprietary concentrates and extraction techniques. As part of this transaction, the founder of the target company, Max Cohen, also joined Jushi as a member of the board of directors and Chief Operating Officer along with several key high-profile members of his team who have significant operational experience in the Colorado marketplace. A few key strategic hires include Emily Cohen, VP of New Market Development, who will be leading Jushi's license application efforts, Ryan Cook, EVP of Operations, who will be overseeing Jushi's day-to-day operations and Kim Eastman VP of Manufacturing Operations, who will oversee Jushi's extraction and manufacturing processes.
Jamie Blundell, President and Chief Operating Officer of CGOC commented, "We are very pleased with the growth and success of Jushi since our initial investment in March 2018. They have met all their stated milestones and have grown the Company into a leading vertically integrated MSO with both cannabis and hemp derived products.
"Our investment in Jushi has provided a return of 178% in fifteen months and is another great example of how our private investments can add value to CGOC. This will be another positive impact on our NAV. At the current share price, CGOC is a vastly discounted opportunity that will allow investors to benefit from the continued success within this sector."
Jim Cacioppo, CEO and Chairman of Jushi, commented, "I want to thank Jamie and his team for the investment, belief in our vision and access to the deep relationships they have built in the cannabis industry. We look forward to keeping all shareholders updated on our progress as we continue to establish ourselves as a publicly traded, leading U.S. cannabis company."
CGOC Return on Investment
CGOC invested in Jushi in March of 2018, for a total of $1,962,090 CAD for 1,500,000 Common Shares and 1,500,000 Warrants of the Company. The implied return based solely on the Common Shares (at a cost of $1,729,611) represents a gain of $3.1 million, or 178% over 15 months and 134% on an annualized basis.
Jushi and its industry leading management team is building an integrated multi-state owner and operator of cannabis and hemp licenses across the United States. Jushi is focused on continuing to build a diverse multi-state portfolio of branded cannabis and hemp-derived assets through opportunistic investments and by internally pursuing licenses in attractive jurisdictions. Jushi strives to maximize shareholder value while delivering high quality products across all levels of the cannabis and hemp ecosystem.
For more information please visit www.jushico.com
CGOC is an investment corporation that offers unique global exposure to the emerging global cannabis sector. CGOC's main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.
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SOURCE Cannabis Growth Opportunity Corporation