It appears that at least one multi-state operator has been buying the dip, so to speak. Ayr Wellness (CSE: AYR.A) this morning provided an update to the market on the status of its normal course issuer bid, detailing how much the firm has bought amid weak market conditions for the sector.
Ayr has reportedly purchased a total of 568,000 subordinate voting shares on the open market, under its previously announce share buyback program. Total consideration of $11.0 million has been spent on the endeavour to date, with the company indicating that much of the shares were repurchased during market weakness in December.
“We accelerated our repurchase program in December 2021 to take advantage of pricing pressure caused by end of year tax selling and other technical conditions. We continue to maintain flexibility and take an opportunistic approach to our stock repurchase program,” said CEO Jon Sandelman on the purchases.
The firm initially announced the buyback program on August 25, wherein they indicated they would repurchase up to 5% of their outstanding subordinate voting shares, which at the time was the equivalent of roughly 2.5 million shares.
While the buyback is a positive, since the announcement of the program the firm has since issued $20 million in stock amongst other consideration to purchase PA Natural Medicine, 5.85 million shares in connection with an early warrant exercise program, $30 million in stock for the purchase of Garden State Dispensary in New Jersey, intends to issue $40 million in stock to acquire Dispensary 33 in Illinois, and intends to issue $10 million in stock to acquire Levia Cannabis Infused Selterzs in Massachusetts, among other issuances.
Ayr Wellness last traded at $19.55 on the CSE.
Information for this briefing was found via Sedar and Ayr Wellness. 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.
