The previously announced plan to acquire Cultivauna, LLC, has finally been completed by Ayr Wellness, a leading vertically integrated multi-state cannabis operator (MSO) in the US. Cultivauna, the company behind Levia-branded cannabis-infused seltzers and water-soluble tinctures, will now be wholly owned by Ayr, as a definitive agreement has been executed.
The company had shared these plans a few weeks ago and has since received nothing but positive feedback from its various customers, investors and industry peers. For many, Levia’s cannabis experience is quite rewarding, and the fact that that effort is now part of Ayr’s plans raises the bar even higher. Jonathan Sandelman. CEO of Ayr Wellness, said this product is unique and will be a game-changer for cannabis integration in the US.
“With a formula that provides consistently great flavor and zero calories in an infused beverage experience, we believe Levia has enormous potential as an alcohol alternative. As we finalize our updated national brand portfolio to address all segments and form factors, Levia will, following closing, play a marquee role in each market where we operate, joining our other national brands, Kynd premium flower, and Origyn extracts,” added Sandelman.
Ayr’s intention is to purchase 100% of Cultivauna’s equity interests. Under the terms of the transaction, a total of $20 million in initial consideration has been included, of which up to $10 million is represented in cash and the remainder in stock. It is reported that up to $40 million would be an additional payment in shares based on the achievement of revenue targets for the next two years.
Massachusetts consumers have had the opportunity to sample Cannabis Infused Seltzer in three different flavors, “Celebrate” Lemon Lime (Hybrid), “Dream” Jam Berry (Indica) and “Achieve” Raspberry Lime (Sativa). All come in 12 oz. slim cans and contain 5mg of tetrahydrocannabinol (THC).
Although the transaction has already been formalized, the acquisition is expected to close later this year, primarily because it is still subject to various regulatory approvals and traditional closing conditions.