Jushi Holdings Inc. (OTCMKTS:JUSH) has announced the first phase of its expansion project at the Pennsylvania cultivation facility situated in Scranton.
PAMS starts its first expansion to add 40,000 sq. ft. of space
Pennsylvania Medical Solutions LLC, the company’s wholly-owned subsidiary, signed an amendment of its existing lease with Innovative Industrial Properties Inc. (NYSE:IIPR). This availed an extra $30 million in funding to expand the first phase of the facility. The company will use the funding to finish the existing 89,000 square feet building and an additional 40,000 square feet expansion of the facility for 130,000 square feet in total. Notably, the first expansion phases with an estimated budget of $40 million will add around 26,000 square feet of canopy for 45,000 square feet in total. The expansion will be completed in Q4 2021, subject to regulatory approval.
The subsidiary is currently designing the second phase of the expected expansion, which will add around 60,000 square feet of space to the facility and increase the total canopy to around 110,000 square feet. Jushi expects PAMS to commence the second phase of expansion in Q3 2021 with a revised initial budget of between $25 million and $30 million. The expected completion date for the expansion will be Q2 2022, subject to approvals. The combined cost of the expansion will be $65-$70 million. This is more than the initial estimate of $50 million due to the increase in the expansion scope and size. Besides the expected two expansions, PAMS has continued assessing and developing expansion opportunities at the facility to meet demand and patient needs.
Jushi wants to meet growing demand in Pennsylvania
Jim Cacioppo, Jushi’s CEO and Founder, said that they are delighted to commence the first phase of expansion of the PAMS grower processor facility. He said that the company continues to experience strong growth in Pennsylvania, and the expansion will allow PAMS to increase its canopy space and production capability to solidify availability to BEYOND/HELLO™ medical marijuana outlets and wholesale market in the state.