Ayr Strategies (CSE: AYR.a) has signed a definitive agreement as of today to enter the state of Arizona. The company has pushed forward with a previously announced letter of intent to acquire that of Blue Camo, LLC.
Blue Camo currently has vertically integrated operations in Arizona, consisting of three Oasis-branded dispensaries in the Pheonix area, along with a cultivation and processing facility in Chandler and a currently under construction cultivation facility in Phoenix. Furthermore, the three dispensaries have been approved for adult-use cannabis within the state, with such sales commencing on Monday.
Under the terms of the transaction, Ayr Strategies is to pay an aggregate of $75.4 million up front. Payment is to consist of $9.5 million in cash, $37.4 million in shares of the company, with an estimated 2.57 million shares to be issued, as well as a $28.5 million sellers note. An additional 2 million shares have been placed in escrow, pending certain production targets being achieved at the new facility. Additional earn-out provisions also exist for 2021 and 22, to be paid based on adjusted EBITDA figures.
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The transaction is currently expected to close in late March.
Ayr Strategies last traded at $33.00 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.
