Jushi Holdings (OTCMKTS:JSHHF), a multi-state owner and operator of cannabis and hemp licenses across the U.S., has signed a deal to acquire stakes in Pennsylvania medical marijuana dispensary permit holders.

Under the agreement, which requires regulatory approval, the company will acquire all of the membership interests of a phase I medical marijuana dispensary permit holder in Pennsylvania under the Medical Marijuana Program (MMP) overseen by the Pennsylvania Department of Health and all of the membership interests of three provisional Phase II Medical Marijuana Dispensary Permit holders under the MMP.

One of the purchased entities owns and operates two local and state-approved dispensaries in Pennsylvania and the other entities own several dispensaries in Pennsylvania that are currently in the design and construction phases of development.

The purchase price is approximately $63 million, subject to working capital and other adjustment. Approximately $27.11 million will be paid in cash, $27.50 million by way of the issuance of certain 10% secured notes to the sellers, and by the issuance of approximately 3.38 million shares to the sellers of the purchased companies, of which 1.5 million shares are to be issued subject to certain escrow provisions.

The deal is subject to regulatory and other customary closing conditions and is scheduled to be completed in the third quarter of 2019.