Distressed MSO Ayr Wellness sold off assets in seven states to its former creditors on Tuesday.
Distressed marijuana MSO Ayr Wellness sells off assets in foreclosure sale is a post from: MJBizDaily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs
Multistate cannabis operator Ayr Wellness is undergoing a restructuring that will cut its debt in half and streamline operations.
Cannabis operator Ayr Wellness restructures to cut debt by 50%, focus on growth is a post from: MJBizDaily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs
The cannabis industry is facing a financial reckoning, with $6 billion in debt maturing by the end of 2026.
How the cannabis sector is grappling with a debt avalanche is a post from: MJBizDaily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs
The Daily Hit is a recap of the top financial news stories for February 9, 2023.
Canopy Slashes 800 From Payroll After Revenues Slide
Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) reported slumping revenues on Thursday and signaled a new cost-savings era that includes cutbacks on cultivation and 800 layoffs. The stock fell more than 8% in early trading on the news to lately sell at $2.52, a big drop from its year high of $9.61. Read more here.
Aurora Cannabis Revenue Boosted by Strong Euro
Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) achieved positive adjusted EBITDA and reduced its debt even though it still recorded a net loss in its latest quarterly earnings. Aurora attributed the rising revenue to “growth across all cannabis business segments” as well as a full-quarter contribution of C$6.6 million from Bevo Farms. Read more here.
How Much Adult-Use Cannabis Has New York Sold? Who Knows?
While many other states quickly release sales figures for new cannabis markets, New York has been conspicuously silent. Inquiries to the New York Office of Cannabis Management and the existing stores regarding sales figures have been met with silence. Read more here.
Ayr Wellness to Exit Arizona, Expand to Ohio
Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) is exiting Arizona and turning its attention to Ohio. The multistate cannabis operator signed a definitive agreement to sell its Arizona assets, Blue Camo LLC, to AZ Goat LLC. Read more here.
Cannabis Dispensary Deals Show How Prices Are Falling
The value of a cannabis dispensary just isn’t what it used to be. Six months ago, Planet 13 (OTC: PLNHF), a Las Vegas-based marijuana company, announced it would pull the trigger on its option to buy out its social-equity partner in an Illinois cannabis dispensary in a $2.9 million transaction. By the time the deal closed yesterday, the value had dropped by $1 million because of the steep downdraft in the stocks of cannabis companies. Read more here.
Pineapple Express Cannabis Co.
Minaro Corp. (OTC Pink: MNAO) (the “Company”), a publicly traded company, announced the execution of a share exchange, the change of its name to Pineapple Express Cannabis Company, and an application to change the company’s current ticker symbol. Read more here.
Halo Collective
Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) expanded the company’s cannabis genetics and strain portfolio within its Oregon operations. With the expansion, Halo Collective now offers a wide range of unique and rare strains, sourced from some of the top growers and breeders in the state. Read more here.
BioHarvest Sciences
BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: CNVCF) reported sales orders of $6.1 million in 2022 , representing a 160% increase over 2021. Fourth-quarter sales orders of $2.7 million were more than triple the sales orders from the same quarter in 2021. Read more here.
The post Daily Hit: February 9, 2023 appeared first on Green Market Report.
Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) is exiting Arizona and turning its attention to Ohio.
The multistate cannabis operator signed a definitive agreement to sell its Arizona assets, Blue Camo LLC, to AZ Goat LLC, a group consisting primarily of the former owners of Blue Camo, who sold the business to Ayr in 2021.
The sale includes three Oasis-branded dispensaries in the greater Phoenix area, a 10,000 sq. ft. cultivation and processing facility in Chandler, an 80,000 sq. ft. cultivation facility in Phoenix, and Willcox OC LLC, a joint venture developing an outdoor cultivation facility.
Ayr will receive $20 million in cash, with additional cash proceeds from net working capital to be received within six months of closing the transaction. In addition, AZ Goat will assume lease obligations from Ayr that will result in the elimination of $15 million in long-term lease liabilities for Ayr.
Ayr will also be reducing its long-term debt obligations related to the original Blue Camo acquisition.
“Ayr’s proposed sale of Arizona assets represents the latest in a series of optimizations focused on simplifying our business and prioritizing existing and future markets where we can build depth,” said David Goubert, president at Ayr. “Today’s action allows Ayr to focus on key markets for growth and profitability, adds cash to our balance sheet, and reduces outstanding debt.”
Ayr also entered into option agreements related to two entities provisionally licensed to operate medical marijuana dispensaries in Ohio. The arrangement includes Daily Releaf’s dispensary in Riverside, Ohio, and Heaven Wellness’ in Clermont County. Neither location is operational at this time.
“Ayr is excited to invest further into the Ohio market and looks forward to establishing a fully vertical presence once permissible under Ohio regulations,” Goubert said.
In addition to the option agreements, the company entered into a support services agreement and a working capital loan agreement with Daily Releaf and Heaven Wellness.
The post Ayr Wellness to Exit Arizona, Expand to Ohio appeared first on Green Market Report.
Ayr Wellness Inc. (CSE: AYR.A)(OTCQX: AYRWF) is killing its plan to buy Chicago-based Gentle Ventures also known as Dispensary 33. According to the company statement, Ayr will no longer be required to pay the previously announced purchase consideration of $55 million upfront, including $12 million of cash, $3 million of seller notes, and $40 million of stock.
“The cannabis market has changed significantly in the 15 months since we agreed to acquire Dispensary 33. Both parties have acknowledged this reality and engaged in good faith dialogue as we came to the mutual decision to terminate the proposed arrangement,” said David Goubert, President at Ayr. “We are focused on optimizing our business and will prioritize our efforts in markets where we can build meaningful depth and drive strong revenue and cash flow in the near term. Additional plans for optimization include implementation of operating efficiencies, lowering costs across our business, and reorienting our investments into the markets, segments and activities that are most impactful for our growth and profitability.”
The company hasn’t slowed its expansion. It recently opened two new retail locations in Florida: Tarpon Springs and Orlando. Both stores feature the AYR retail design concept and operate under the Liberty Health Sciences banner. The new stores offer many of Ayr’s national brands and products and feature a “bud bar,” providing customers with a sensory experience showcasing samples of whole flower strains currently available for purchase.
In New Jersey, its three retail locations, formerly known as Garden State Dispensary, are now operating under the AYR dispensary name. Since acquiring Garden State Dispensary in September 2021, Ayr said it has made significant progress in elevating key facets of the business, including improvements to the menu and overall retail experience. In 2022 the company opened a large-scale cultivation expansion, launched adult-use sales at its three retail locations, the maximum allowed in the state, and introduced its national brand portfolio in the wholesale market and its retail stores.
Ayr Wellness reported its third-quarter earnings in November revenue rose 24% to $119 million over last year’s revenue of $96 million and an increase of 8.6% sequentially. The operating loss grew to $20.7 million over last year’s loss of $8.9 million. It improved by 17% over the second quarter. The company had a comfortable cash cushion of $100 million.
The post Ayr Wellness Dips On Dispensary 33 appeared first on Green Market Report.
Login