Ayr Wellness To Acquire Cannabis Beverage Producer Levia In A $20M Stock And Cash Deal

Ayr Wellness Inc. AYR OTC: ,AYRWF) announced that it has entered into a binding letter of intent to acquire Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers and water-soluble tinctures. Ayr intends to purchase 100% of the equity interests of Cultivauna, LLC. 

The terms of the transaction include $20 million in upfront considerationmade up of up to $10 million in cash with the remainder in stock. An earn-out payment of up to an additional $40 million will be paid in shares based on the achievement of revenue targets in 2022 and 2023.

Levia Cannabis-Infused Seltzers provide for the rapid onset of THC, typically 15-20 minutes, allowing for a more consistent consumption experience than many edible productsLevia is currently available in Massachusetts in three experiences and flavors: 1) “Achieve” Raspberry Lime (Sativa), 2) “Celebrate” Lemon Lime (Hybrid), and 3) “Dream” Jam Berry (Indica).

Each flavor comes in 12-ounce slim cans and contains 5 mg of THC. Levia is also available in water-soluble tinctures in the same formulations.

The acquisition is subject to customary closing conditions and regulatory approvals as well as the execution of a binding definitive agreement. The acquisition is expected to close by the end of 2021.

“With a formula that provides consistently great flavor and zero calories in an infused beverage experience, we believe Levia has enormous potential as an alcohol alternative,” Jonathan Sandelman, CEO of Ayr Wellness stated. “In just six months since its initial launch in Massachusetts, Levia has become the top-selling THC beverage.

"As we finalize our updated national brand portfolio to address all segments and form factors, Levia will play a marquee role in each market where we operate,” Mr. Sandelman concluded.

Price Action 

Ayr Wellness’ shares were trading 0.39% lower at $28.00 per share at the time of writing Monday morning. 

Photo: Courtesy Daniel Norin on Unsplash

Market News and Data brought to you by Benzinga APIs
Posted In: CannabisNewsMarketsAyr Wellness to Buy LeviaCannabis BeveragesJonathan Sandelman
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on bzcannabis.com – Prices will increase very soon!