The Arizona marijuana market is saying goodbye to one of the most relevant companies in the industry. Leading US multi-state, vertically integrated cannabis operator (MSO) Ayr Wellness recently announced that it has entered into an agreement to sell its assets in the state while exploring the option of acquiring dispensary licenses and expanding its footprint in Ohio.
According to a definitive agreement signed by the firm, Ayr is divesting Blue Camo, which comprised the company’s Arizona assets, to AZ Goat, comprised primarily of former Blue Camo owners. They had decided to sell the business to Ayr in early 2021, but appear to be acquiring the keys back.
The sale includes an 80,000-square-foot processing and cultivation facility in Phoenix, three Oasis-branded dispensaries in the Phoenix metro area, and a 10,000-square-foot cultivation and processing facility in Chandler. The joint venture developing an outdoor cultivation facility, Willcox OC, will also exit the Ayr portfolio.
Under the recently reached deal, $20 million in cash will be the consideration Ayr will receive, with additional cash proceeds from net working capital to be received within six months once the transaction is completed. AZ Goat also intends to be responsible for lease obligations that will result in the elimination of approximately $15 million in long-term lease liabilities for Ayr.
“Ayr’s proposed sale of the Arizona assets represents the latest in a series of optimizations focused on simplifying our business and prioritizing existing and future markets where we can go deeper,” said David Goubert, president of Ayr, in the press release. “Today’s action allows Ayr to focus on key markets for growth and profitability, adds cash to our balance sheet, and reduces outstanding debt.”