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.