- Ayr Wellness Inc. (AYR.A) has terminated its proposed acquisition of Dispensary 33 and certain of its affiliates for two dispensaries in Chicago, Illinois
- Ayr Wellness will no longer be required to pay the previously announced purchase consideration of $55 million upfront
- The amount included $12 million in cash, $3 million in sellers notes, and $40 million in stocks
- The company stated it is instead focused on optimizing its business to drive strong revenue and cash flow in the near term
Ayr Wellness Inc. (AYR.A) has terminated its proposed acquisition of Dispensary 33 and certain of its affiliates for two dispensaries in Chicago, Illinois.
Dispensary 33 operates two locations in Chicago, one on the lively N Clark Street in the Andersonville neighbourhood and the other on W Randolph Street in West Loop,
Following the mutual termination, Ayr Wellness will no longer be required to pay the previously announced purchase consideration of $55 million upfront, including $12 million in cash, $3 million in sellers notes, and $40 million in stocks.
David Goubert, President of Ayr Wellness, commented,
“The cannabis market has changed significantly in the 15 months since we agreed to acquire Dispensary 33. Both parties have acknowledged this reality and engaged in good faith dialogue as we came to the mutual decision to terminate the proposed arrangement.”
The company will instead focus on optimizing its business and will prioritize its efforts in markets where to build ‘meaningful depth’ and drive strong revenue and cash flow in the near term. This will include lowering costs across the business and reorienting investments into the markets.
Ayr Wellness Inc. (AYR.A) is up 3.64 per cent, trading at $1.71 per share as of 1:10 p.m. EST.
