Wednesday, October 8, 2025

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Ayr Strategies: Canaccord Reiterates Rating Following Arizona Transaction

This week, Canaccord Genuity came out with a note reiterating their C$25 price target and a speculative buy rating on Ayr Strategies (CSE: AYR.A). This comes after the company announced that they have expanded into their fifth state with an Arizona acquisition immediately following the passage of a recreational ballot measure in the state.

The company is purchasing six dispensaries, a 10,000 square foot cultivation and processing facility, and another 80,000 square feet cultivation facility currently under development. They are paying a total of $81 million, which is made up of $10 million in cash, $41 million in stock, and $30 million in seller notes.

Bobby Burleson, Canaccord’s analyst, says, “the new market growth opportunities in Arizona, Ohio and Pennsylvania complement AYR’s existing highly profitable and cash-generating core Massachusetts and Nevada operations.” However, Burleson states their estimates will remain unchanged until there is further clarity on the closing and the financing. Burleson adds that they don’t, “expect any additional capex to build-out Arizona facilities in the near term.”

Burleson adds, “We note that Arizona has been one of the largest and fastest growth medical markets in the US, so we expect a relatively smooth and fast transition to rec beginning in 2021,” as Arizona is expected to grow from $820 million in sales this year to $1.4 billion in sales by 2024.

He then goes into the other recent acquisitions into Ohio and Pennsylvania and says when all acquisitions close, “AYR will have exposure to states with combined sales estimated to be $2.6B this year growing to $5.1B in 2024.” In Ohio, AYR announced an agreement to acquire an operational processing facility and signed a term sheet for management rights over a level 1 cultivation facility for total consideration of $18.2 million. In Pennsylvania, AYR signed an agreement to acquire a cultivation and processing operation. The cultivation facility is 38,000 square feet with the capacity to expand to 74,000 square feet for a total consideration of $21 million.

Burleson finally states, “Upon completion of the two Pennsylvania transactions, we believe AYR will be one of the largest operators in the state.”


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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