fbpx
QQQ
+ 0.00
324.41
+ 0%
DIA
-0.04
343.69
-0.01%
SPY
-0.04
415.56
-0.01%
TLT
+ 0.00
136.79
+ 0%
GLD
+ 0.02
174.68
+ 0.01%

Ayr Wellness Expands In NJ With $101M Garden State Dispensary Acquisition

March 29, 2021 12:46 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Ayr Wellness Expands In NJ With $101M Garden State Dispensary Acquisition

Vertically-integrated cannabis company Ayr Wellness Inc. (CSE:AYR) (OTCQX:AYRWF) confirmed Monday it's acquiring GSD NJ, LLC, which is doing business as Garden State Dispensary.

The Canadian company agreed to buy 100% of the New Jersey-based licensed operator's equity interests for $101 million.

The price tag includes $41 million in cash, $30 million in stock, and $30 million in the form of promissory notes.

In addition, earnout payments are subject to particular target revenue thresholds upon closing of the transaction and are capped at $96.75 million.

Through the acquisition, Ayr will not only get three operational dispensaries but also 30,000 square feet of cultivation and production space. An additional 75,000 square feet are currently under construction.

The acquisition is expected to close in the third quarter of 2021.

GSD, An OG

GSD is one of the six original alternative treatment centers in the Garden State. The company currently employs 110 people.

Chairman and CEO Jonathan Sandelman said he is thrilled to serve medical cannabis patients in New Jersey and work on ensuring a "safe and robust roll-out of the adult-use program.

"We see an incredible opportunity to drive growth at retail with the introduction of our quality cannabis brands, expanded product offerings, and exceptional in-store experience," he added.

New Jersey legalized the use of recreational cannabis on November 4 through a ballot measure.

67% of the respondents voted in favor of legalizing cannabis. However, lawmakers are still struggling to put the bill in force.

Last week, the state's Cannabis Regulatory Commission appointed its first Black male member, Charles Barker.


Related Articles

Ayr Wellness Shares Slightly Up On Heels Of $17M Parma Wellness Center Acquisition

Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF), confirmed Tuesday it has completed the acquisition of Ohio-based Parma Wellness Center LLC in a $17 million cash deal. read more

New York Strikes Marijuana Reform Deal Paving Way For Adult-Use Bill

New York is fast-tracking marijuana legalization  That's according to Senate Finance Committee Chair Liz Krueger, citing an agreement between Governor Andrew Cuomo and the State Legislature on a deal to legalize adult-use cannabis sales for adults over 21. read more

Cantor: Speedy Marijuana Reform In New York May Crush New Jersey's Market Potential

A final deal for a bill to legalize recreational marijuana in the state of New York could be closed imminently. The effects of this decision could greatly affect the fate of a number of large and medium-sized multi-state operators, or MSOs, within the Empire State and New Jersey. read more

Can Past Medical Cannabis Sales Predict Rec Sales?

New Jersey is expected to start recreational cannabis sales either later this year or early next. Until then, it's not know what the combined med+rec sales will be, but Cantor Fitzgerald analyst Pablo Zuanic has a rough idea. He decided to take a look at the numbers in other states to help forecast what can be expected from the Garden State. read more