Ayr Strategies Inc. AYR AYRWF confirmed Wednesday a $75.4 million worth acquisition of Blue Camo LLC.
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.”
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us September 13-14, 2022 at The Palmer House in Chicago, IL.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.