After humble beginnings, Jushi Holdings (CNSX:JUSH) (OTCMKTS:JUSHF) has become a Top 10 U.S. multi state operator (MSO) by market capitalization. But is didn’t get there by accident. Capital constrained in the beginning as a public company, Jushi was judicious about the cannabis licenses it bid on, avoiding expensive bidding wars present in more sought-after markets.
And in retrospect, the results have been superb. Jushi’s focus on value has paid big dividends for the company, which is growing at one of the fastest rates among U.S. MSOs. As CEO, Chairman and Founder Jim Cacioppo describes Jushi’s inaugural license accrual plan:
When we went public in May of ’19, the investor universe including the Canadian brokers were all focused on us being in New York where we had a license—or minority interest in a license—to Florida where we had a management contract. And we saw bidding wars going on in those states. So we focused on where the value was and where the best bang for your buck was, because we had limited capital.
Primarily where Jushi Holdings saw value was in the northeast, midwest and in the beltway state of Virginia. The company has an industry-leading presence in Pennsylvania, where it currently operates ten (10) dispensaries with plans open eight (8) more in 2021. It’s also a leading player in Virginia—which recently became the sixteenth state to legalize adult-use cannabis—with one (1) operational dispensary and plans for five (5) more through 2022. Jushi has also operates four (4) dispensaries in southern Illinois, which Mr. Cacioppo described as its “cash cow”.
With one look at the company’s latest earning report, we can see why. In Q3 2020, revenue increased 67 percent sequentially to $24.9 million while recording its first positive Adj. EBITDA quarter in company history. This was following stellar growth in Q2 2020, where revenue increased 73% sequentially to $14.9 million.
If Pennsylvania Governor Tom Wolf can convince a Republican-controlled House and Senate to move on an adult-use cannabis bill for ratification, plenty of outsized growth runway lies ahead.
Click on the embedded link for more of our exclusive interview with Jushi Holdings CEO Jim Cacioppo, in his own words.