Ayr Buys Illinois’ Natural Dispensaries For $30 Million

Ayr Wellness Seeing Tourists Returning As Revenues Increase


Ayr Wellness Inc. (OTCQX: AYRWF) is staying busy this week with acquisitions as the corporate provides an Illinois operation referred to as Natural Cures Dispensaries, LLC for about $30 million. Natural is an operator of two licensed retail dispensaries in Illinois. The deal is predicted to shut within the fourth quarter of 2021. The transaction consists of $10 million in inventory, $12 million in vendor notes, and $8 million in money. Based mostly on present projections, Ayr stated it believes it’s paying roughly 5x Natural Cures’ 2021 EBITDA. Natural will add roughly 50 staff to Ayr’s whole headcount.

“At this time’s announcement represents the subsequent step in our objective to place Ayr as a number one MSO, with a powerful presence in states that ship significant income. Illinois will develop into the eighth state in our increasing footprint, which now reaches near 85 million folks. The full cannabis market in Illinois is already run-rating at $1.8 billion in annual gross sales, regardless of adult-use launching solely 18 months in the past. The workforce at Natural Cures has accomplished an incredible job in Quincy, constructing a incredible enterprise and a powerful popularity for glorious customer support and merchandising – precisely what we at Ayr Wellness search for in a companion when getting into a brand new market. We sit up for working with the Natural workforce as we proceed to construct our presence within the Illinois market,” stated Jonathan Sandelman, Chairman and Chief Govt Officer of Ayr Wellness.

Natural Cures was among the many first cannabis dispensaries licensed within the State of Illinois when the State authorized the Compassionate Use of Medical Hashish Program in 2013. Each medical and leisure use is now permitted.

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Viridian Capital Advisors analyst Jonathan deCourcey stated in a report, “We imagine the retail property will likely be just the start of Illinois growth and count on the corporate will hunt down cultivation and manufacturing property within the close to time period each to assist retail operations and to leverage AYR’s experience as a prime wholesale provider in under-developed markets. Illinois stays one of many prime development states in US cannabis and a market that is still very a lot in play for a well-run operator (or operators), like AYR, to disrupt and set up a long-term sustainable management place.” He charges the corporate a purchase and has a $42 worth goal. He added, “By the top of this yr, AYR may have a presence in Arizona, Florida, Illinois, Massachusetts, Nevada, New Jersey, Pennsylvania, and Ohio. Every represents a excessive development market with favorable dynamics for operators. We proceed to count on AYR to shortly develop a formidable enterprise in every new state whereas constructing upon its management place in Massachusetts and Nevada. Even earlier than contemplating Illinois growth, we considered AYR’s 2022 goal outcomes of at the least $725M in revenues and $325M in adjusted EBITDA as being very a lot attainable giving the corporate one of many largest projected scales of operation within the business.”

Nevada Acquisition

On Monday, Ayr introduced it was shopping for Nevada-based Tahoe Hydroponics Firm, LLC in a deal valued at $17 million. It’s a money and inventory deal that can encompass $5 million in money, $3.5 million in debt, and roughly $8.5 million in inventory.

Tahoe Hydro operates roughly 33,000 sq. toes of whole cultivation and manufacturing area in its services in Carson Metropolis, Nevada, and Sparks, Nevada. The corporate grows flower and produces concentrates for a few of the state’s top-selling manufacturers, together with Tahoe Hydro and LIT (Misplaced in Translation), top-sellers, and native favorites all through the state, based on BDSA, and is a Nevada flower provider for the well-known Cookies model.

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