Ayr Strategies Expands In Arizona, Acquires Blue Camo For More Than $75M
In November, the multi-state cannabis operator revealed its plans to acquire 100% of the membership interest of Blue Camo, an Arizona-based vertically integrated cannabis company.
Ayr agreed to provide an upfront payment of $75.4 million. Some $9.5 million of that amount is in cash, $37 million in stock (around 3.57 million shares) and up to $28.5 million in seller notes.
An extra 2 million shares will be put in escrow to be used upon completing certain milestones at the new cultivation facility.
Once the transaction closes, Ayr will obtain Blue Camo’s main operations:
- 10,000 square-foot cultivation and processing facility in Chandler;
- Three dispensaries in the greater Phoenix area under the Oasis brand;
- 80,000 square-foot cultivation facility currently in 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,” Ayr chair and CEO Jonathan Sandelman said. “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.”
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