Jushi has announced plans to nearly double the square footage of its subsidiary’s grower-processor facility in Scranton, Pennsylvania from approximately 90,000 sq. ft. to more than 160,000 sq. ft. in a phased expansion. "The majority of the approximate 70,000 sq. ft. expansion project will be focused on increasing the Facility’s canopy space, which upon completion will nearly triple to approximately 98,000 sq. ft.," Jushi team explains. "The first phase of the expansion is expected to come online in mid-2021 and the final phase will be completed by the second quarter of 2022. In total, we expect to invest approximately $50 million on the expansion project, which is expected to create over 100 new jobs in the Scranton area."
Jushi will work with Innovative Industrial Properties to partially finance the expansion project via an upsize to the existing lease agreement between the parties. The expansion project is subject to the Company’s successful completion of certain milestones, including receipt of all local and state approvals and permits, and the finalization of a mutually agreed lease amendment with Innovative Industrial Properties Inc. related to the Facility.
“The medical cannabis market in Pennsylvania is rapidly growing and with our products in high-demand, this investment will significantly expand our cultivation capacity and market share,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “This is a robust operating environment, and we believe that patient demand for high-quality, medical grade cannabis products is still far from being satisfied. With the phased build-out, the support of our financing partner Innovative Industrial Properties Inc., and our strong balance sheet with ample liquidity, we expect to remain fully funded to operating cash flow positive, including our likely investment beyond Innovative Industrial Properties Inc.’s support. We believe that by investing in the expansion of our grower-processors, we will generate the greatest potential return for Jushi shareholders.”
Mr. Cacioppo concluded, “We are very excited by the opportunity ahead of us in Pennsylvania, and as one of the fastest growing jobs sectors in the U.S., Jushi and its subsidiaries look forward to bringing additional new local jobs and tax dollars to the region and further investing in Scranton’s economy and community.”
The Company recently completed an expansion project in the third quarter 2020, which included increasing the Facility’s indoor cultivation from approximately 20,000 sq. ft. to approximately 45,000 sq. ft. (~33,000 sq. ft. of canopy) and supplementing the current CO2 extraction with new Class I, Division 1 ethanol extraction technology. The Facility produces indoor-grown flower and extracts