Ayr Strategies Enters Arizona Market With $81 Million Acquisition

Ayr Strategies (CSE: AYR.A) has wasted no time expanding into the Arizona market following the decision last night by voters to make recreational cannabis legal within the state. The company this morning announced that it has agreed to acquire a vertically integrated operator for total upfront consideration of $81 million under a binding term sheet.

The asset, whom is unnamed, currently operates a 10,000 square foot cultivation and processing facility in Chandler, while also having an 80,000 square foot facility under construction in Phoenix. In terms of dispensaries, its slightly unclear in terms of what Ayr has acquired. Initially, the release indicates there are three licensed dispensaries, however it then goes on to say that that it is acquiring “three licensed dispensaries in greater Phoenix, two in Chandler and one in Glendale.”

Further, the asset is said to enable Ayr to “enter a thriving and robust market at 3.7x 2021 estimated Adjusted EBITDA, generating significant value for our shareholders.”

The upfront purchase price of $81 million will be settled via $10 million in cash, as well as $41 million in stock, which is estimated to result in the issuance of 2.75 million shares of the issuer. Additionally, $30 million in sellers notes will also be payable. Earn-out payments of up to 2.0 million shares are also in play, dependent upon certain cultivation targets for 2021 and 2022 being met.

“Arizona has been a terrific medical market, third in the U.S. in terms of patient penetration at 3.4% and currently generating approximately $800 million in annual revenue. Yesterday, voters decided to make it a recreational use market as well. We are thrilled to be able to leverage our experience, talent, brands and success in Nevada and Massachusetts to bring quality and choice to the Arizona market.”

Jonathan Sandelman, Chairman and Chief Executive Officer of Ayr

Following the transaction, which is subject to final due diligence, the company will have operations across Arizona, Massachusetts, Nevada, Pennsylvania, and Ohio.

Ayr Strategies last traded at $19.55 on the CSE.


Information for this briefing was found via Sedar and Ayr Strategies. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Ayr Strategies Price Target Upgraded By Canaccord, Echelon Wealth Following Second Quarter Reporting

Last week, Ayr Strategies (CSE: AYR.A) reported their second-quarter financials and reached an agreement to...

Saturday, August 29, 2020, 01:39:00 PM

Ayr Strategies Announces Non-Dilutive US$75 Million Financing

Ayr Strategies (CSE: AYR.A) has secured a non-dilutive financing to the tune of US$75 million...

Friday, December 4, 2020, 08:43:49 AM

Ayr Strategies Closes Overnight Marketed Offering, Raises $157.6 Million

Ayr Strategies (CSE: AYR.a) this morning closed its overnight marketed public offering. The financing, initially...

Thursday, January 14, 2021, 09:48:37 AM

Zillow Home Loans Launches 1% Down Payment Program in Arizona

Zillow Home Loans announced last week the launch of its 1% Down Payment program, which...

Monday, August 28, 2023, 02:12:00 PM

Ayr Strategies Offers Incentive On In-The-Money, Acceleration-Clause-Meeting Warrants

Ayr Strategies (CSE: AYR.A) this evening announced that it is offering a short term incentive...

Monday, November 23, 2020, 05:28:27 PM