Company: JUSHF
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001628280-25-019342
Chunk: 26

Company: Jushi Holdings Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 26
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 to $0.54 per subordinate voting share and 100,806 options repriced from $1.91 per subordinate voting share to $0.54 per subordinate voting share. The vesting schedule for the directors’ 394,758 replacement options restarted on the replacement option grant date, and vests one year from the replacement option grant date.

S-3 Effective September 13, 2024

On August 30, 2024, pursuant to an obligation in the Credit Agreement, we filed a registration statement on Form S-3 that was declared effective by the SEC on September 13, 2024 (the “September S-3”). The September S-3 permits the selling shareholders to offer and resell up to 23,400,000 of our subordinate voting shares, consisting of: (i) 4,000,000 subordinate voting shares, and (ii) 19,400,000 Subordinate Voting Shares issuable upon exercise of outstanding Warrants. An entity affiliated with James Cacioppo and Denis Arsenault had the subordinate shares issuable upon exercise of their outstanding Warrants registered for resale under the September S-3.

Factoring of ERC Credit

On February 18, 2025, the Company announced that certain affiliates of the Company sold approximately $6 million of United States employee retention credit (“ERC”) tax refund claims to a third party for approximately $5.1 million of net cash proceeds. Each affiliate of the Company is also entitled to receive a portion of any interest paid on their respective ERC tax refund claims through the transaction date. Certain affiliates of the Company have approximately $3 million of additional United States ERC tax refund claims remaining with the United States Internal Revenue Service which were not sold as part of this transaction. The Company paid certain consent fees to the holders of the Term Loans to effectuate the sale of the ERC claims. An entity affiliated with Jim Cacioppo and Denis Arsenault received consent fees totaling $120,000.

Sale of Second Lien Notes and Warrants

On February 25, 2025, the Company sold approximately $5.1 million principal amount of 12% Second Lien Notes and detached warrants to purchase the Company’s subordinate voting shares in a private placement. The Company received approximately $4.6 million of net proceeds from the sale of the 12% Second Lien Notes and the warrants. The 12% Second Lien Notes were issued in accordance with the Indenture. The Notes were issued with a ten percent (