
MIAMI, March 27, 2023 –
PRESS RELEASE – AYR WellnessInc., a leading vertically integrated U.S. multistate cannabis
operator, today announced that it has closed under the definitive agreement to
sell Blue Camo LLC, which comprises the company’s Arizona assets, to AZ Goat AZ
LLC, a group consisting primarily of the former owners of Blue Camo, who sold
the business to AYR in Q1 2021. The sale includes two licensed entities
operating three Oasis-branded dispensaries in the greater Phoenix area, a
10,000-sqaure-foot cultivation and processing facility in Chandler, and an
80,000-square-foot cultivation facility in Phoenix, and AYR’s majority interest
in Willcox OC LLC, a joint venture developing an outdoor cultivation facility.
AYR received consideration of $20
million in cash, with additional cash proceeds from net working capital to be
received in the next six months. In addition, the AZ Goat has assumed lease
obligations that resulted in the elimination of approximately $15 million in
long-term lease liabilities for AYR. In a separate arrangement, all potential
earn-out contingent consideration and debt outstanding related to the Q1 2021
purchase of Blue Camo has been eliminated, reducing AYR’s long-term debt by
$22.5 million.
“I am pleased to announce the
swift closing of the sale of our Arizona assets,” said David Goubert, president
and CEO of AYR. “This transaction strengthens our balance sheet by adding cash
and reducing net debt and long-term operating leases by approximately $55
million, while improving our working capital position. Finalizing this
transaction is the latest step in our optimization plan as we look to
streamline our business and prioritize investment into our most profitable assets.”
“We are pleased to have worked
with the AYR team in completing this mutually beneficial transaction and reentering
Arizona, a market in which our team has deep roots,” said Jason Vedadi, CEO of
AZ Goat.
Additional terms and details of
the transaction can be found in the company’s press
release from last month.