AYR Wellness Inc. AYRWF AYR has now reached contingent agreements to defer principal or amortization payments for 2 years on an aggregate principal amount of approximately $69 million of debt obligations, including contingent agreements with holders of approximately $60.5 million aggregate principal amount of vendor take-back promissory notes, representing 67.4% of the outstanding principal amount of all vendor notes maturing before 2027. The company has also reached contingent agreements to defer the maturities of $4.5 million of other promissory notes, as well as a $4 million amortization payment due in December 2023.
Included in the $69 million total amount of deferred principal and amortization payments are the amendments to $27.7 million principal amount of vendor notes entered into upon completion of the company's acquisition of GSD and CannTech as well as promissory notes assumed by CSAC Acquisition PA Corp. in connection with the CannTech acquisition. As a result of the collective amendments to the vendor notes, promissory notes, and earn-out payments, the company has now successfully extended the payment terms of a cumulative of $96.9 million of obligations.
In connection with the above vendor note and promissory note amendments, the company has agreed to interest rate adjustments that will result in a blended interest rate increase of approximately 0.5% across the $69 million aggregate principal amount. The company also agreed to pay amendment fees with respect to certain of the above amendments aggregating $400,000 that will be capitalized to the principal amount of certain vendor notes. The effectiveness of the maturity and amortization deferrals referenced above is contingent on an amendment to the company’s 12.5% senior notes to extend the maturity date of the senior notes to December 10, 2026 or a later date.
Photo: Benzinga edit with photo by Kindel Media on Pexels
Related News
Pennsylvania Bill To Allow Medical Marijuana For Every Illness At Doctor's Discretion
Ayr Wellness And Blaze Responsibly Hold Juneteenth Cannabis Expungement Clinic In New Jersey
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
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!