Cannabis MSO Ayr Wellness to sell recently acquired Arizona assets

Miami-based multistate marijuana operator Ayr Wellness is divesting its recently acquired Arizona assets and entering the Ohio market.

According to a news release, Ayr agreed to sell the Arizona assets it acquired in 2021 back to the original owner for $20 million in cash plus additional proceeds from net working capital within six months of the transaction closing.

In 2021, Ayr said it was buying the assets for $10 million in cash, $41 million in stock and $30 million in seller notes.

According to The Deep Dive, filings show the company agreed to pay $9.7 million in cash, $25.8 million in debt payable, $125.2 million in shares.

It’s not clear if another $117.6 million in contingent consideration was paid out.

The sale to AZ Goat includes:

• Three Oasis-branded stores.
• A cultivation facility in Phoenix.
• A cultivation and processing facility in Chandler.
• An interest in a joint venture to create an outdoor cultivation facility.

The sale, which is expected to close in the first half of this year, will relieve Ayr of $15 million in long-term lease liabilities and $22.5 million in outstanding debts related to the original acquisition.

Ayr also announced plans to acquire two entities with provisional medical dispensary licenses in Ohio.

The company didn’t share details of the deal.

Earlier this year, Ayr laid off 180 workers and canceled its acquisition of Chicago retailer Dispensary 33.

“Ayr’s proposed sale of Arizona assets represents the latest in a series of optimizations focused on simplifying our business and prioritizing existing and future markets where we can build depth,” Ayr President David Goubert in a statement.

“Today’s action allows Ayr to focus on key markets for growth and profitability, adds cash to our balance sheet and reduces outstanding debt.”

Source: https://mjbizdaily.com/cannabis-mso-ayr-wellness-to-sell-recently-acquired-arizona-assets/