Ayr Wellness and Dispensary 33 terminate acquisition
Ayr Wellness recently announced that the vertically integrated multi-state cannabis operator terminated the previously announced proposal to acquire the equity interests of Dispensary 33 retail stores in Illinois. The original proposed acquisition was announced in November 2021.
Following the mutual termination, Ayr will no longer be required to pay the previously announced purchase consideration of $55 million upfront, including $12 million of cash, $3 million of sellers notes and $40 million of stock. The first Dispensary 33 retail store at 5001 N. Clark Street opened December 2015 and sold the first recreational cannabis product in January 2020.
In July 2021, Ayr Wellness also entered into a definitive agreement to acquire two Herbal Remedies Dispensaries. The two Quincy Herbal Remedies Dispensaries and the two Dispensary 33 shops were some of the last independent-owned shops left in Illinois and two of the first dispensaries to open in Illinois. Herbal Remedies was among the first cannabis dispensaries licensed in 2013.
“The cannabis market has changed significantly in the 15 months since we agreed to acquire Dispensary 33,” said David Goubert, President at Ayr. “Both parties have acknowledged this reality and engaged in good faith dialogue as we came to the mutual decision to terminate the proposed arrangement. 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. 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.”
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