Ayr Wellness To Expand Nevada Footprint With $17 Million Tahoe Hydro Acquisition Deal
Ayr Wellness Inc. (CSE: AYR.A) reported today that it has entered into a definitive agreement to purchase 100% of Nevada-based cultivator Tahoe Hydroponics and its concentrate producer NV Green. The acquisition is reported to be $17.0 million in total consideration.
According to the terms, the transaction payment will be made up of $5.0 million in cash, $3.5 million in debt, and approximately $8.5 million in stock. Based on the company’s projections, this transaction amount is roughly 4.5 times the combined 2021 adjusted EBITDA of the two Nevada-based cannabis cultivators.
The acquisition will add two cultivation licenses, one production license, and one distribution license to the company’s footprint in Nevada. This will also boost Ayr Wellness’ manpower with 75 employees.
Tahoe Hydroponics currently operates approximately 33,000 square feet of cultivation space in Nevada, growing flowers and producing concentrates like Tahoe Hydro and LIT (Lost in Translation).
The company has yet to disclose the schedule of the acquisition but has relayed that the transaction is still subject to customary closing conditions and regulatory approvals.
The multi-state operator posted $58.4 million in revenue and $16.6 million in net loss for Q1 2021.
Ayr Wellness last traded at $36.27 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.
