Boston Archives - Green Market Report

Adam JacksonAugust 18, 2022
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4min4170

Ayr Wellness Inc. (OTCQX: AYRWF) hiked its outlook for the year on Thursday despite posting results that missed expectations — as sales slip and losses rise. The multi-state operator reported financial results for the first quarter ending June 30, 2022

Ayr reported approximately $110.1 million in revenue during the period, up 20.6% versus the same period last year; and a loss of 1% sequentially — below the Yahoo Finance Average analyst estimate for revenues of $114.81 million.

The company also reported a second-quarter net loss of $40.25 million, up 77% sequentially; versus a net loss of $37.4 million in the same period last year. The earnings were a loss of $0.56 per share versus a loss of $0.11 cents per share in the previous quarter.

“Our second half growth will be slower than previously expected, but the earnings power of the business remains outstanding,” said CEO Jonathan Sandelman. “We continue to make investments in people and processes, while remaining prudent through these turbulent economic times.”

Ayr reported a gross profit of $40.3 million, versus a gross profit of $45.5 million in the first quarter. Adjusted EBITDA was $19.6 million, down 28.5% from $27.4 million in the same period last year.

The company ended the quarter with a cash balance of $116.7 million and closed $81.5 million of real estate financing transactions, bringing the year-to-date total to $108 million with an annualized blended cost of capital of 7.8%.

East of the Mississippi

In May, the New Jersey Cannabis Regulatory Commission approved Ayr for adult-use cannabis sales for all three of its retail locations there — the maximum amount of dispensaries permitted under current state law.

The company since then has seen new revenue stream from both New Jersey and Boston; after Ayr received the green light to sell adult-use cannabis in Boston’s Back Bay, the company’s first adult-use dispensary in the neighborhood.

To the South, Ayr added two more Florida dispensaries to their 50 stores across the state.

Based on the second quarter results, “coupled with an uncertain macroeconomic backdrop,” Ayr also updated their guidance for the rest of the year; expecting revenue, adjusted EBITDA and operating income to grow around 10% sequentially by the third quarter, followed by “an acceleration in the pace of sequential growth in Q4 2022.”

“With our core operating footprint in place, the vast majority of our capex behind us, and a strong, $117 million cash position on our balance sheet,” Sandelman said, “we believe that we are well-placed to weather this economic environment and emerge stronger on the other side.”


Debra BorchardtJanuary 16, 2019
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Ascend Massachusetts was awarded the first conditional-use permit for adult-use cannabis retail sales in the city of Boston. The flagship store will be the first adult-use retailer to operate within a major East Coast metropolitan city and is expected to open by the end of the year.

Massachusetts legalized adult use cannabis sales, but it took two years to license operators and open stores. When sales began on November 20, 2018, only two locations had been approved resulting in traffic headaches and customer lines. Still, the state managed to log $7 million in sales in just the first three weeks. A new report by ArcView Research and BDS Analytics projects that cannabis spending in Massachusetts will reach $1 billion by 2022 and that it will be the fifth biggest market in the U.S.

“Ascend Massachusetts is honored to be chosen as the first company awarded a license for an adult-use retail store by the city of Boston,” said Andrea Cabral, CEO of Ascend Massachusetts, which is a wholly own subsidiary of Ascend Wellness. “A core value of our company is to positively impact our neighborhoods and communities. We are proud to have the support of leaders and organizations across Boston and Massachusetts in this endeavor.”

No doubt that support helped sway the approval process.  Ascend managed to get letters of support from State Senator Joseph Boncore (D); State Representative Aaron Michlewitz (D); Boston City Councilors Josh Zakim and Ed Flynn; The Downtown North Business Association; as well as a letter of non-opposition from the West End Civic Association.

The store will be located in downtown Boston close to Faneuil Hall, a site built in 1742 for merchants and where the Sugar Act was protested in 1764 and established the doctrine of “no taxation without representation.” The store will be multi-leveled and designed by the Andrus Group, which has designed stores for Apple, Tesla, and Burberry. The designers noted that the store will combine innovation with education in order to create an engaging in-store experience for shoppers.

James Andrus, principal at The Andrus Group said, “This is a unique project that builds upon our experience in creating highly visited retail locations that serve the needs of tourists, consumers, and the community.”

So far, five retail locations have been approved in the state. There are still about 200 completed applications waiting for the state’s review and approval.

“We are proud of the work that Andrea and her team did to secure and plan our location,” says Abner Kurtin, CEO of Ascend Wellness. “We are gratified by the confidence the City of Boston has in Ascend Massachusetts to create best-in-practice and best-in-class adult-use retail for the Boston community.”

Ascend Wellness is a private multi-state operator located in three states: Illinois, Michigan, and Massachusetts. The Massachusetts CEO Cabral was the Executive Secretary of Public Safety in Massachusetts where she oversaw 14 public agencies. She was the twice-elected Sheriff of Suffolk County and the first female sheriff in Massachusetts’ history.


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