Ayr Strategies has signed a Definitive Agreement to acquire the membership interests of Blue Camo.
Ayr intends to purchase 100% of the membership interests of Blue Camo, a vertically integrated operation in Arizona. Key operations include three Oasis-branded dispensaries in the greater Phoenix area, a 10,000 ft2 triple-stacked cultivation and processing facility in Chandler and an 80,000 ft2 cultivation facility under development in Phoenix.
“Arizona has been a terrific medical market, third in the U.S. in terms of patient penetration at over 3.8% and currently generating approximately $1 billion in annual revenue1. Last week, the Arizona Department of Public Health began approving applications for adult-use sales. Thus far, approximately 90 locations have been approved, including the three Oasis-branded dispensaries that we will be acquiring. Oasis’ adult-use sales commenced on Monday, January 25th to a large crowd of excited customers waiting to experience first-hand the end of cannabis prohibition in Arizona. We are thrilled to see the state move quickly to make safe, tested and regulated cannabis available for adult-use following the overwhelming support it received at the ballot box in November,” said Jonathan Sandelman, Chairman and Chief Executive Officer of Ayr. “We look forward to working with the regulators and team of over 110 people in Arizona to ensure a successful roll out of recreational sales in Arizona.”
The terms of the transaction include upfront consideration of $75.4 million, made up of $9.5 million in cash, $37.4 million in stock (approximately 2.57 million shares priced at 10-day VWAP prior to announcement) and $28.5 million in seller notes. An additional 2 million shares will be placed in escrow and will be released upon the achievement of established production targets at the new cultivation facility.
The acquisition is subject to certain closing conditions and regulatory approvals.
For more information:
Ayr Strategies
ayr.inc