Ayr Strategies buys Arizona medical cannabis firm for $81 million

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Multistate cannabis operator Ayr Strategies announced an $81 million acquisition deal that will allow the New York-based company to enter Arizona, giving it three storefronts in the Phoenix metro area and two cultivation facilities.

The deal comes on the heels of Arizona’s Election Day move to legalize recreational marijuana, which will largely benefit the existing operators in the state.

Ayr, which also has offices in Toronto, purchased a company that operates under the dispensary brand Oasis, according to a news release and the Arizona Republic. The deal includes:

  • Two storefronts in Chandler and another in Glendale – both Phoenix suburbs.
  • A grow and manufacturing facility in Chandler.
  • An indoor growing operation in Phoenix.

Oasis sold for $10 million in cash, $41 million in stock and $30 million in seller notes.

The acquisition will bring Ayr’s storefront footprint to 11 dispensaries in five states, and CEO Jonathan Sandelman said the company is “positioning ourselves as one of the top multistate operators in the U.S.”

Ayr already owns or has entered into acquisition deals in four other states, including Massachusetts, Nevada, Ohio and Pennsylvania.

“We’ve always looked to go deep in the best markets, targeting attractive assets in limited-license states with large populations, and where we can build a vertically integrated presence and continue adding to our deep talent pool. Importantly, it needs to be at the right price,” Sandelman said.

Ayr Strategies trades on the Canadian Securities Exchange under the ticker symbol AYR.A and on over-the-counter markets as AYRSF.