Ayr Wellness Archives - Green Market Report

Debra BorchardtMay 26, 2022


Ayr Wellness Inc. (OTCQX: AYRWF) reported financial results for the first quarter ending March 31, 2022 with revenue rising 90% to $111.2 million over last year’s $58 million. Sales did slip a tiny bit from the fourth quarter’s revenue of $111.8 million. Ayr is forecasting an annualized run-rate of $250 million of Adjusted EBITDA,$250 million of Adjusted EBITDA, $100 million of operating income, and $800 million of revenue for the fourth quarter of 2022.

The company also trimmed its net losses from $16 million for the first quarter of last year to $9 million. During the first quarter, Ayr said it  deployed $33.2 million of capital expenditures and anticipates an additional $37 million of capital expenditures for the remainder of 2022. The company ended the quarter with a cash balance of $78.7 million.

Jonathan Sandelman, Founder, Chairman and CEO of Ayr, said, “We have made excellent progress this year to complete major capex projects and receive regulatory approvals across our footprint. We will now unlock the revenue streams from these various assets going forward – including the start of adult use sales in New Jersey and Boston next month. We invested heavily in these assets ahead of the revenue benefits which has temporarily reduced our operating margins, however, we expect these investments to put our forward earnings power in a much stronger position and anticipate improvements to both our top and bottom line in the second half of 2022 as these assets come online and begin to ramp.”


Earlier this week, the New Jersey Cannabis Regulatory Commission approved Ayr for adult-use cannabis sales for all three of its retail locations, which is the maximum allowable dispensaries under current state law. On May 12, Ayr received its final license to sell adult-use cannabis in the heart of Boston’s Back Bay, the company’s first adult-use dispensary in Greater Boston. Ayr expects the dispensary to open in June.

Sandelman added, “It has been well-telegraphed by our peers that Q1 was a challenging period for the industry. However, we have maintained or even increased retail market share across most of our footprint despite this challenging backdrop, while also increasing wholesale revenue.”
During the first quarter, Ayr secured a $26.2 million mortgage loan at a 4.625% interest rate. This loan represents the first monetization of Ayr’s $180 million real estate portfolio. Subsequent to quarter-end, Ayr closed on a second real estate backed financing, with a principal of $25.8 million and a 5.5% interest rate. These financings combined have unlocked $52 million of capital for the Company with an industry-leading blended interest rate of 5.06%.

“The foundation for our business is set, and the investments we have made into our people, our customers, our technology infrastructure, and our retail and cultivation processes are now set to bear fruit. It has been a long journey that has required incredible patience, but as our assets turn on and ramp in Q3 and Q4, we believe we are at the inflection point we’ve been planning for the past 18 months.”

StaffMay 25, 2022


Ayr Wellness Inc. (CSE: AYR.A)(OTCQX: AYRWF) announced that the New Jersey Cannabis Regulatory Commission approved the Company for adult-use cannabis sales in the Garden State.

“We are thrilled to be approved for adult-use sales in New Jersey and to have all three dispensaries cleared simultaneously to open for adult-use,” said Jonathan Sandelman, Founder, Chairman and CEO of Ayr. “To date, Central Jersey has the lowest number of dispensaries per capita, leaving its population under-served compared with the rest of the state. New Jersey is expected to become a highly influential state for the U.S. cannabis industry, and we are honored to help shape the market landscape from its early stages.”

Ayr currently operates medical dispensaries in Woodbridge, Union, and Eatontown, all located in Central New Jersey, a region of 3.4 million people which until now only had access to two adult-use dispensaries. The Company’s three retail locations are the maximum allowable dispensaries under current state law.

“We are thrilled to be approved for adult-use sales in New Jersey and to have all three dispensaries cleared simultaneously to open for adult-use,” said Jonathan Sandelman, Founder, Chairman and CEO of Ayr. “To date, Central Jersey has the lowest number of dispensaries per capita, leaving its population under-served compared with the rest of the state. New Jersey is expected to become a highly influential state for the U.S. cannabis industry, and we are honored to help shape the market landscape from its early stages.”

“This is a significant milestone for Ayr, and I am so proud of our team for making it a reality,” said Julie Winter, Ayr’s Vice President of Retail Operations in New Jersey. “We look forward to opening our doors to adult-use customers, while continuing to provide excellent service, quality, and choice to our medical patients.”

Adult-use sales in New Jersey officially began five weeks ago. BDSA expects New Jersey to be the third largest contributor to overall US sales growth by 2026, projected to generate an annual revenue of $2.3 billion in total legal cannabis sales.

Video StaffMay 17, 2022


On April 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Raising Capital” and addressed the challenges women face when raising money. From perfect balance sheets as female-owned companies struggle to raise capital that male-led companies don’t. This panel/presentation will give ways to overcome these issues. Panelists included Tahira Rehmatullah – CEO Commons, Daisy Mellet – Merida Capital Partners, Jen Drake – COO Ayr Wellness (OTC: AYRWF) and moderated by Chloe Aiello – Cheddar News.

Thank you for watching the Green Market Report! Be sure to subscribe to our channel and our newsletters.

StaffApril 22, 2022


This article was republished with permission from Cannabiz Media. 

Cannabiz Media has been tracking cannabis and hemp licenses globally since 2015. Over those seven years, we have aggregated a mass of data on licenses, companies, and transactions that result in change of license ownership.

After compiling 500 transactions in our Cannabiz Intelligence platform, we wanted to take a closer look at how key publicly traded MSOs were adding to their store footprints. Our goal was to determine which stores were “built” versus those that were “bought”.

Key Findings

  • Almost 12% of US cannabis stores are owned by a public company.
  • 338 of these stores have changed hands, and 29 public companies were involved in these transactions.
  • Almost 60% of the store acquisitions occurred in five states (Florida, Colorado, Pennsylvania, California, and Arizona).
  • The number of stores changing hands has increased every year. In 2021, we found 185 stores that were purchased, up from 53 in 2020.


According to the Cannabiz Media License Database, there are currently 8,909 stores/dispensaries in the US. Of those licenses, 1,048 (11.8%) are owned by public companies, and we found 338 stores that changed hands. A total of 29 public companies were involved in these transactions.

The graph below shows the number of stores that have changed hands. We only included closed deals.


In trying to assess the footprint impact, we compiled the number of stores bought against the number built or awarded. The Leaderboard below shows public MSOs that bought at least 10 stores.

Based on our analysis, Trulieve has bought the most stores (54), and that accounts for 32% of its footprint. AYR Wellness purchased 42, accounting for 62% of its stores. Curaleaf, a company with a very large footprint, has only acquired 15 stores. $1.2B was spent by these firms to acquire these licenses.


  • In the table above, Schwazze bought 77% of its licenses with AYR Wellness at 62%. Cresco comes in third at 56% though this will change once the Columbia Care acquisition is complete.
  • Verano spent the most at $202 million with Cresco at $178 million and Trulieve at $176 million.
  • Verano paid the most per store at $9.64 million while Schwazze paid the least at $1.79 million.


More stores were acquired in limited license states rather than unlimited license states. Limited license environments are more predictable thanks to the oligopolistic protections afforded by the regulations.  Early entrants are well positioned when the inevitable adult use market opens, and they have advantages including customers, marketing, branding, real estate and established relationships with regulators.

The M&A Hotspots Table shows the states that public MSO’s invested in.


We do not see this trend ending anytime soon. The latest blockbuster deal of Cresco and Columbia Care will run into license cap issues in some states, and this will require divestiture. In future posts, we plan to look at the license cap issue and delve into which states have had their licenses MSO’d – like Connecticut. We welcome your questions as well, so reach out directly to ekeating @cannabiz.media.


Analysis like this is as much art as science, so here is some of the logic we applied:

  • Only active licenses are counted. Pending and applied are not included, nor are future licenses that a company has the right to operate. This approach makes some of the Pennsylvania licenses look very expensive as operators bought these licenses knowing they could run multiple stores.
  • In large deals where a variety of assets were acquired, we backed out the value of cultivation/manufacturing assets based on comparable transactions when available.
  • We strive to be comprehensive but we may not have caught every deal, and in some cases, the MSO may have deemed a small acquisition as immaterial.
  • In addition to the Cannabiz Intelligence platform, the team derived deal data from SEC and SEDAR filings as well as company press releases, investor decks, and investor relations staff.


Ed Keating is a co-founder of Cannabiz Media and oversees the company’s data research and government relations efforts. He has spent his career working with and advising information companies in the compliance space. Ed has managed product, marketing, and sales while overseeing complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental, and human resource markets.

Shea Sanford is Product Manager for Cannabiz Media’s Cannabiz Intelligence product.  He’s responsible for sleuthing out corporate transactions and keeping track of MSOs, SSOs, REITs, SPACs and any other acronyms we can find.

Cannabiz Media customers can stay up-to-date on these and other new licenses through our newsletters, alerts, and reports modules. Subscribe to our newsletter to receive these weekly reports delivered to your inbox. Or you can schedule a demo for more information on how to access the Cannabiz Media License Database yourself to dive further into this data.


StaffMarch 21, 2022


Ayr Wellness



What is your proudest accomplishment in the cannabis industry?

Let me start by saying that there are very few businesses that are harder to operate in than the legal cannabis business, but the opportunity in this space is unmatched. With that in mind, I am most proud of the amazing team I’ve built at Ayr. I love identifying talent and putting those individuals in positions to succeed, and because legal cannabis is such a new industry, I often get the opportunity to give people chances in this space that they wouldn’t have had in other industries. 


Do you feel that the cannabis industry has more opportunity for female-identifying people than other industries?

With the cannabis industry being a relatively new space, it has the tools to create greater opportunities for underrepresented groups. It’s important to never take that for granted, as we need to work actively every day to cultivate and uphold that environment. As long as we keep that top of mind, we’ll be able to maintain that kind of positive internal growth.


Do you feel you have to work twice as hard as male colleagues or do you think the industry has moved past that?

Absolutely. I wish it weren’t the case, but it’s just a fact that women have to work twice as hard as men, just to be seen as three-quarters as good. That’s not a cannabis issue – it’s a broader cultural issue in our world. While I do feel society is moving in the right direction, we just aren’t there yet. As more women thrive in leadership roles and more people begin to associate the idea of leadership with a woman, we will gain more opportunities to advance society along those lines. 


What was your biggest challenge in business and how did you overcome it?

I come from Dayton, Ohio, raised by two schoolteachers and the youngest of four children. So I was never really exposed to the business world, and frankly knew nothing about it when I started my career out of college. I’ve been incredibly fortunate to have really good mentors who have helped me through so many learning curves and challenges throughout my career. 


What have you or your company done to help provide more opportunity for women? 

We have made it a point of priority to develop infrastructure internally for women to have support systems, and by extension help them to thrive in their roles. One key example is our Employee Resource Groups, which are designed to raise awareness and support more inclusive processes over time. We’ve also made a conscious effort to hire women in key positions, including our Chief People Officer, heads of retail in key markets, and other leadership roles. 


What are your personal goals for 2022? 

Last year in 2021, we made some key hires and investments into our Corporate Social Responsibility and People functions, and hired really strong individuals to lead those areas. One of my key goals for 2022 is to take those investments and leverage them into industry-leading CSR and People programs, and to continue to develop one of the best company cultures in the United States. 


Debra BorchardtMarch 17, 2022


Ayr Wellness Inc. (OTCQX: AYRWF) reported that revenues rose 133% in the fourth quarter to $111.8 million over last year’s $47.8 million. It was a 16% increase over the third quarter’s revenues of $96.2 million. The company also posted net income of $23 million for the quarter and earnings per share of $0.35. It was also an improvement over the third quarter’s net loss of $3.3 million.

Revenue for the fiscal year of 2021 was $357.6 million versus the previous year’s revenue of $155.1 million. The net loss for the year was trimmed to $17 million versus 2020’s $24.6 million. The company said it expects the first half of the year to be flat, but then gain in momentum for the rest of the year.

Jonathan Sandelman, Founder, Chairman and CEO of Ayr, said, “2021 was a transformative year for Ayr, with outsized revenue and Adjusted EBITDA growth, and an expanded operating footprint bringing us from our two original states to seven leading cannabis markets, with an eighth pending acquisition close. We added 62 dispensaries and 8 cultivation facilities, while welcoming more than 1,600 teammates. Following this transformative year for our operating footprint, we are now squarely focused on making 2022 a transformative year for Ayr’s earnings power. The CapEx projects we began in 2021 are expected to begin generating revenue for us throughout 2022, leading to our expected significant second half ramp. While these projects have been delayed, we are proud of the extensive expansion our team has achieved through this global pandemic and supply chain crisis.”

2022 Outlook

Ayr Wellness noted that given prior construction delays and uncertain regulatory timelines regarding key revenue-generating initiatives, including regulatory approval for adult-use sales and cultivation expansions in both Massachusetts and New Jersey, the company expects financial results in the first half of 2022 to remain relatively flat, in-line with industry trends, followed by a step-function in growth beginning in Q3 2022 and continuing through Q4 2022.

If all goes well and the company gets approvals in the third quarter, it could have an annualized run-rate of $250 million of Adjusted EBITDA, $100 million of operating income and $800 million of revenue for the fourth quarter of 2022.

The company said it is expecting approximately $250 million of Adjusted EBITDA, $800M of Revenue and $100M of US GAAP Operating Income on an annualized basis, based on the run rate expected to be delivered in the fourth quarter of 2022.

StaffFebruary 15, 2022


With so many deals never making it to the finish line, two cannabis companies closed on strategic deals today.


Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) completed the acquisition of an operational 64,000 sq. ft. cultivation facility in Phoenix, Arizona. Trulieve said it will pay $13.75 million cash at closing, with potential milestone payments subject to earn-out and escrow requirements.

“We are excited to close this acquisition which is in line with our strategic priorities,” said Kim Rivers, CEO of Trulieve. “The facility strengthens Trulieve’s presence in the cornerstone market of our Southwest hub, as well as expands our cultivation capacity. We look forward to serving more patients and customers throughout Arizona with our high-quality, proprietary brands.”

The new cultivation facility immediately improves supply chain capacity and becomes Trulieve’s fifth cultivation facility in Arizona, supporting Trulieve’s 17 dispensaries in the state of Arizona with flower for medical patients and adult-use customers. Trulieve locations in Arizona include AvondaleCasa GrandeChandlerCottonwoodGlendaleGuadalupe, Lake Havasu, MesaPeoriaPhoenixScottsdaleTempe and Tucson.

Ayr Wellness

Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) has closed the acquisition of Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers and water-soluble tinctures.

“Bringing Levia into the Ayr family represents a key addition to our portfolio of high-quality, branded offerings,” said Jonathan Sandelman, Founder, Chairman and CEO of Ayr. “We look forward to expanding the presence of Levia’s seltzers and water-soluble tinctures across our multi-state footprint, while bringing new, innovative form factors to life, like beverage enhancers. With a fast-acting formula and great taste, we believe Levia will be a crucial component in expanding our reach to new and existing consumers who seek a predictable and familiar cannabis experience.” Levia uses a proprietary technology that provides for rapid onset of the effects of THC, typically 15-20 minutes with lasting effects up to 3 hours, allowing for a more consistent consumption experience compared to many edible products, which often take longer.

Video StaffDecember 22, 2021


Ayr Wellness (OTC: AYRWF) Head of Strategy and M&A Jamie Mendola spoke with Green Market Report last week at the NCIA conference in San Francisco. Mendola talked about the coming opportunities in New Jersey as the state prepares for adult-use sales. He also spoke about the delays in Massachusetts and how Ayr Wellness has weathered those issues and is about to open a key location in Boston.

StaffNovember 24, 2021


Cannabis has finally earned a seat at the table in America. According to a new survey, one in two Green Wednesday shoppers intend to gift cannabis products to a friend or family member this year, while 77% will consume cannabis with others on Thanksgiving. In fact, data suggests American cannabis consumers have become increasingly open about their cannabis habits, with 40% planning on consuming openly with family and friends this season, and 37% planning to incorporate cannabis into their annual Thanksgiving meal. One thing is clear: this Thanksgiving, cannabis is a family affair.

These findings are part of a national study conducted by real-time consumer intelligence platform Suzy in partnership with Ayr Wellness (OTC: AYRWF), a vertically integrated U.S. multi-state cannabis operator focused on becoming the most trusted producer of high-quality cannabis at scale. The nationally-representative study, conducted in November 2021, surveyed over 1,300 Americans on their cannabis consumption habits, beliefs, and purchasing patterns tied to the holidays and Green Wednesday—the industry’s second-biggest sales day in 2020, aptly dubbed the ‘Black Friday’ of cannabis. Findings suggest that cannabis is more mainstream than ever this year and a useful resource for managing family dynamics during the holidays.

Cannabis and the American Family:

  • 25% of Americans find seeing extended family for the holidays stressful.
  • 15% of all American parents will use cannabis to deal with holiday-related stress.
  • 76% of parents who consume cannabis will use cannabis to deal with holiday-related stress.
  • 69% of cannabis consumers will use cannabis to deal with holiday-related stress.
  • “Family gossip” is a leading Thanksgiving table topic people will get high to engage with this year, ahead of politics, money and religion.

“Over the past decade, cannabis has become increasingly ingrained into the fabric of American culture and tradition, with cannabis sales on Green Wednesday reaching new heights every year,” said Jonathan Sandelman, Founder, Chairman, and CEO of Ayr Wellness. “At Ayr Wellness, we’re passionate about enriching lives through this powerful plant by meeting consumers wherever they are in their cannabis journey, from novice to expert. From flower to beverages, and from extracts to edibles, our new portfolio of power brands offers something for everyone.”

Indeed, American cannabis purchasing patterns continue to evolve as new brands, consumption formats and technologies empower a more diverse range of cannabis-inspired experiences. According to data from Akerna and Headset published in Green Market Report, in 2020, Green Wednesday cannabis sales beat Black Friday sales for the first time —with upward trends expected to continue this year.

Green Wednesday Purchase Intent:

This year, 60% of cannabis consumers intend to visit a dispensary on Green Wednesday, with 71% expecting to spend $50 – $100 or more on cannabis products for themselves or others.

Cannabis purchasing patterns by consumption format:

  • Flower: 29%
  • Pre-rolled flower (joints): 9%
  • Infused flower: 4%
  • Edibles / Beverages: 19%
  • Concentrates / Extracts: 11%
  • Cartridges: 10%
  • Topicals: 5%

With 65 dispensaries nationwide, Ayr Wellness offers one of the most comprehensive selections of cannabis on the market, with products and gifts for every kind of cannabis consumer.  The company is offering discounts, special promotions, and door prizes at its locations across the U.S.

Debra BorchardtNovember 22, 2021


Ayr Wellness Inc. (OTCQX: AYRWF) is reporting financial results for the third quarter ending September 30, 2021 with revenue rising 111% to $96.2 million, which was a sequential increase of 5%. Ayr Wellness also reported a net loss of $3.3 million, which was a bit higher than last year’s net income of $620,373. The earnings per share were ($0.06), which beat the Yahoo Finance Average Analyst estimate for earnings of ($0.15). Ayr Wellness delivered a US GAAP operating loss of $8.9 million which included non-cash, one-time expenses, and non-operating adjustments totaling $34.9 million.

Ayr Wellness is also revising its 2022 adjusted EBITDA guidance to a range of $250-300 million, which the company said reflected delays in capital projects. The company is also feeling the pain of a volatile wholesale market and said that if these issues continue into 2022, it could also impact planned guidance.  The company is reiterating its target for 2022 revenue of $800 million. The company is also forecasting fourth-quarter revenue growth of over 10% sequentially. Adjusted EBITDA is expected to remain roughly flat sequentially, as the company continues its investments in branding, new markets, and growth projects, and the centralized corporate resources to support growth.

“We are pleased to report another great quarter of growth at Ayr, more than doubling our revenue from last year’s third quarter and up 5% sequentially in a flat cannabis market,” said CEO Jonathan Sandelman. “We have been able to maintain or grow share in competitive markets with pricing discipline because, by design, we have focused on quality and consumers continue to show a willingness to pay for quality. As we’ve said, again and again, we seek to be the largest scale cultivator of high-quality cannabis in the United States. First and foremost, this is because we want to produce the best product for our customers. But also, because quality serves as a mitigant to pricing pressure that can result from supply and demand imbalances. Quality matters.”

Gentle Ventures Acquisition

Ayr also announced it was buying Illinois-based Gentle Ventures also known as Dispensary 33 in a deal valued at $55 million. The company owns and operates two licensed retail dispensaries in Chicago, Illinois, one in the Andersonville neighborhood and the other in West Loop. The deal consists of $55 million upfront, including $12 million in cash, $3 million sellers notes, and $40 million in stock. An earn-out is payable if certain EBITDA performance is achieved through Q3 2022. The acquisition is subject to customary closing conditions and regulatory approvals. This will increase the company’s footprint in Illinois to five stores.

New Branding


“Today we are unveiling our new corporate, retail and CPG brands which represent the next phase in the evolution of our company. These brands are designed to represent the quality of what’s inside the box. Our portfolio of power brands, which consists of Kynd premium flower, Origyn Extracts, Stix Pre-Roll Company, and (on closing) Levia, reflects the very best of cannabis and represents leading market categories for current and future consumers. We’re also unveiling a collection of core brands to offer variety in form, dose and experience. These core brands address a broader audience in those same power categories,” Mr. Sandelman continued.

“Lastly, we are unveiling our updated Ayr retail concept. We have built this retail concept very intentionally for the experience in our stores to reflect the quality of our products and our commitment to our local communities. At Ayr, we are committed to thinking long-term. We will continue to invest in our quality and our brands. We understand that brand building in this industry is still in its early stages but the reason that we’re committed to this path is because we know that great products and great brands create their own categories and consumer segments,” Mr. Sandelman concluded.



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