Ayr Wellness backs off plans to purchase Dispensary 33

Ayr Wellness backs off plans to purchase Dispensary 33

The cannabis company is responding to a change in the conditions driving the marijuana market

The country’s leading vertically integrated multi-state cannabis operator (MSO), Ayr Wellness, announced late last week the completion of the previously announced proposed acquisition by Gentle Ventures (Dispensary 33). The report also mentions some of its affiliates that collectively operate and own two licensed retail dispensaries in Chicago.

As a result of this mutual termination, Ayr is no longer under the obligation to pay the purchase consideration valued at $55 million. This transaction included $3 million in promissory notes from the sellers, $12 million in cash and $40 million in stock. However, the company didn’t mention if it would have to pay any cancellation fees.

According to David Goubert, president of Ayr, the last 15 months have seen significant changes in the cannabis market. That has led to plans to acquire Dispensary 33 being canceled. After engaging in good faith dialogue, both parties have come to terms with this reality, making the mutual decision to rescind the proposed agreement not difficult to achieve.

“We are focused on optimizing our business and will prioritize our efforts in markets where we can build meaningful depth and drive strong revenue and cash flow in the near term,” added Goubert. “Additional plans for optimization include implementation of operating efficiencies, lowering costs across our business, and reorienting our investments into the markets, segments, and activities that are most impactful for our growth and profitability.”

This was just one of the moves Ayr has made over the past couple of years as it expected substantial changes in US cannabis legislation. It had previously announced the purchase of another retailer in Illinois, as well as two cannabis producers in Nevada. Ayr purchased a medical cannabis company in New Jersey and three medical marijuana dispensaries in Pennsylvania.

However, in other areas, the company continues to expand. Earlier this month, it announced two new retail locations in Florida. One is in Tarpon Springs and the other is in Orlando.