AYR Wellness (CSE: AYR.A) appears to be the next multi-state cannabis operator that is circulating a bankruptcy filing. The company this morning indicated it will be delaying its first quarter financial results, and anticipates a cease trade order being issued on the equity.
To make matters worse, a strategic review has been undertaken in connection with oncoming payment obligations to creditors. The company currently has $24.8 million in current debt payable, on top of trade payables of $30.9 million and lease liabilities of $11.8 million related to operations and $11.8 million in lease liabilities related to finance.
Moelis & Company ha been retained by Ayr in an effort to explore capital structure alternatives while senior lenders have been engaged to amend certain notes due December 10, 2026. These ongoing negotiations are being blamed for the filing delay, with the company needing to reassess accounting classifications for these debts.
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The strategic review follows CEO David Goubert resigning from his role with the company in September, while the interim CEO that followed Goubert, Steven Cohen, resigned in April. CFO Brad Asher exited the company in March.
The filings are currently expected to be filed by June 13.
Ayr Wellness last traded at $0.145 on the CSE.
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