Ayr Wellness Inc. (OTCMKTS: AYRWF) has announced the completion of the 100% membership interests acquisition of PA Natural Medicine LLC through its wholly-owned subsidiary.
Ayr Wellness adds more dispensaries in Pennsylvania
PA Natural is a licensed operator running three retail dispensaries, and its acquisition expands Ayr Wellness’ presence in the burgeoning medical market in Pennsylvania. The interests purchase in PA Natural will add major dispensary outlets in central Pennsylvania that include college towns of State College and Bloomsburg, and Selinsgrove. In addition, the multi-state operator will rebrand the dispensary location to “Ayr” as per its retail strategy from the current “Nature’s Medicine” brand by the end of the year.
Ayr Wellness CEO, Chairman, and Founder Jonathan Sandelman said, “We are excited to expand our retail presence in Pennsylvania, where we’ve generated great momentum since entering the market earlier this year, in terms of the excellent reception we’ve received for both our dispensaries and our Ayr-grown premium flower. With six stores now open and two additional dispensary openings anticipated by year-end, and one of the largest cultivation and production footprints in the state, we expect Pennsylvania to be a major contributor to our growth in 2022 and beyond.”
According to the transaction terms, there will be an upfront payment of $80 million for the acquisition comprising $35 million in cash, $25 million in seller notes, and $20 million i9n Ayr Wellness common stock. Also, an earn-out pegged on the Adjusted EBITDA for 2021 will be payable in Q1 2022.
Ayr accelerate warrant exercise
Odyssey Trust, the company’s trustee, is making final decisions on the warrant exercises ahead of the expedited expiry date of September 30, 2021. Approximately 90% of the expiring warrants owners, according to the company, elected to exercise for cash. Consequently, the company anticipates adding around $50 million in cash to its balance sheet. Ayr will issue a final update in the near future.