Despite many within the space stating otherwise, it seems theres some level of demand for cannabis infused beverages. Ayr Wellness (CSE: AYR.a) became the latest multi space operator to take a step into the space this morning, announced it has entered into a binding letter of intent to acquire Cultivauna, whom owns the Levia brand of cannabis seltzers.
Currently available in the state of Massachusetts, Levia produces three varieties of cannabis infused seltzers as well as three water soluble tinctures. The brand is reportedly the top selling beverage product in the state after being on the market for just six months. If the acquisition closes, the brand is expected to be distributed across all markets in which Ayr operates.
The proposed acquisition will see Ayr acquire the firm for initial consideration of $20 million, with the potential price paid being as high as $60 million based on certain earnout out provisions based on undisclosed revenue targets for 2022 and 2023. Consideration is to consist of $10 million in cash and a further $10 million in stock, with any earn-outs to be paid in shares of the company as well.
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The proposed acquisition is expected to close by the end of 2021.
Ayr Wellness last traded at $35.17 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.
