Multistate marijuana operator Ayr Wellness said it is spending $17 million to acquire two Nevada cannabis businesses, Tahoe Hydroponics Co., a cultivator, and NV Green, a concentrates producer.
Tahoe and NV Green are separate companies but have “the same principals involved,” according to an Ayr spokesperson.
The acquisition’s $17 million price tag includes $5 million in cash, $3.5 million in debt and roughly $8.5 million in stock.
“The Tahoe Hydro acquisition perfectly encapsulates Ayr’s strategy,” Ayr CEO Jonathan Sandelman said in a statement.
“We seek to be the largest-scale cultivator of high-quality cannabis in every market where we operate.”
Ayr, which has offices in New York and Toronto, said the acquisition includes the following Nevada licenses:
- Two for cultivation.
- One for production.
- One for distribution.
Ayr’s Nevada presence already includes “(providing) administrative, consulting and operations services to one cultivation facility, two production facilities, and six dispensaries,” according to a news release announcing the deal.
Tahoe Hydro operates a total of approximately 33,000 square feet of cultivation and manufacturing space in Carson City and Sparks, Nevada.
“The acquisition will add significant cultivation capacity to Ayr’s Nevada operations and provide the company with expanded access to high-quality premium flower for its operations throughout the state,” said Ayr.
That will enable “the company to better serve its retail customers with increased availability and selection of high-quality, Ayr-grown flower in its retail stores, and provide additional capacity to expand its wholesale presence within Nevada.”
The acquisition will bring Ayr 75 employees, whom it “plans to deploy both within Nevada and nationally.”
Ayr shares trade on the Canadian Securities Exchange as AYR.A.