Ayr Wellness Inc. announced today that it had closed the definitive agreement for an acquisition it started last year. The leading vertically integrated US multistate cannabis operator (“MSO”) will purchase Herbal Remedies Dispensaries, LLC, an operator of two licensed retail dispensaries located in Quincy, Illinois.
Herbal Remedies was one of the first licensed cannabis dispensaries in Illinois to be licensed when the state approved the Compassionate Use of Medical Cannabis Program. Illinois allows both recreational and medical cannabis use. Herbal Remedies is licensed to sell cannabis for both recreational and medical use. Ayr will continue to be licensed.
Jonathan Sandelman, founder, chairman and CEO of Ayr, said, “We are thrilled to finalize the acquisition of Herbal Remedies, strengthening our operational footprint with the addition of Illinois, a strategic and growing adult-use market. The team at Herbal Remedies has created a highly valuable position as one of the first licensed cannabis dispensaries within the state, establishing excellent relationship services that we feel will be a natural fit in support of our common mission to provide people with remarkable cannabis experiences. We look forward to strengthening this position as the Illinois market continues to develop within the broader US cannabis landscape.”
The Illinois Department of Financial and Professional Regulation approved the acquisition on May 11, 2022. The terms of the transaction are detailed in the Company’s July 20, 2021, press release.
Ayr just released its latest financial standings, as well. Although it saw a slight dip in the first quarter, this was a common theme across virtually all cannabis companies. Still, Ayr made significant investments in its assets before the revenue benefits, which temporarily reduced our operating margins. It expects these investments to increase its forward earnings power, and it anticipates improvements to both the top and bottom lines in the second half of 2022 as these assets go online.