Ayr Wellness Enters Definitive Agreement To Buy Owner Of Levia Cannabis Infused Seltzers For $20M

Multi-state cannabis operator Ayr Wellness Inc. AYR AYRWF revealed on Tuesday that it has moved to a definitive agreement for its previously announced plan 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 consideration, made 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 Seltzer is currently available in Massachusetts in three experiences and flavors - Achieve Raspberry Lime (Sativa), Celebrate Lemon Lime (Hybrid), and Dream Jam Berry (Indica). Each flavor is available in 12-ounce slim cans and contains 5 mg of THC. Levia is also available in water-soluble tinctures in the same formulations.

Levia uses a proprietary technology that provides for rapid onset of the effects of THC, typically 15-20 minutes. The effects can last up to 3 hours, allowing for a more consistent consumption experience than many edible products.

“Since we first announced our intention to acquire Levia a few weeks ago, we have been thrilled with the feedback we’ve received from customers, friends, investors and industry colleagues about how much they’ve enjoyed the cannabis experience Levia brings,” Jonathan Sandelman, CEO of Ayr Wellness stated. “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.”

The acquisition is expected to close by the end of 2021.