Multistate operator Ayr Wellness said it has canceled its acquisition of Chicago cannabis retail operator Dispensary 33, citing changing market conditions.
Miami-based Ayr described the decision to terminate the deal as “mutual,” according to a Friday news release.
“The cannabis market has changed significantly in the 15 months since we agreed to acquire Dispensary 33,” Ayr President David Goubert said in a statement.
“Both parties have acknowledged this reality and engaged in good-faith dialogue as we came to the mutual decision to terminate the proposed arrangement.”
Ayr’s proposed acquisition of Dispensary 33 and its two Chicago retail locations was originally announced in November 2021.
The $55 million price tag was to be satisfied by cash, seller notes and Ayr shares.
Ayr did not specify any termination fees to be paid in relation to the deal’s cancellation.
Goubert said Ayr “will prioritize our efforts in markets where we can build meaningful depth and drive strong revenue and cash flow in the near term.”
“Additional plans for optimization include implementation of operating efficiencies, lowering costs across our business, and reorienting our investments into the markets, segments and activities that are most impactful for our growth and profitability,” he said.
Other Ayr acquisitions announced in 2021 include:
- Another retailer in Illinois.
- Two cannabis producers in Nevada.
- A New Jersey medical cannabis company.
- Three Pennsylvania medical marijuana dispensaries.
- A Boston-based cannabis beverage manufacturer.