Ayr Wellness announces incentive for cash exercise

Ayr Wellness announces incentive for cash exercise

The cannabis company continues to fine-tune its operations as it reaches new heights

Leading vertically integrated multi-state cannabis operator Ayr Wellness Inc. closed August by announcing the accelerated expiration of the company’s stock purchase warrants. It has been reported that the expiration of the warrants is being properly accelerated based on what is permitted under the warrant agency agreement between Ayr and Odyssey Trust Company, as the warrant agent. The expiration date of the warrants now stands at 5:00 PM on September 30, due to the receipt of notice in accordance with the applicable provisions of the warrant agency agreement. Ayr also announced the incentive exercise rights available to warrant holders who exercise their warrants for cash.

It was reported that the company intends to offer a $0.59 incentive for the cash-only exercise of issued and outstanding warrants. As a result, gross proceeds to the company of approximately $55 million would be generated in the event that the approximately 6.5 million issued and outstanding warrants and 2.9 million Founders’ Warrants are exercised pursuant to the warrants.

“As we continue to deliver on our extraordinary growth trajectory, we are pleased to be able to be able to offer our Warrantholders this opportunity, while at the same time simplify our capital structure and add cash to our already strong balance sheet in a non-dilutive way,” said Jonathan Sandelman, Ayr Founder, Chairman, and CEO. “We could not be more pleased with our excellent operational performance and our explosive growth, which is reflected in our recently increased $800 million 2022 revenue guidance.”

The Warrants will be exercisable from today until the Warrant’s accelerated expiration date, as provided for in the Warrant Incentive Program. In order to participate in this program, holders must complete the Incentive Warrant Exercise Notice posted on the Investor section of the Ayr’s website.