Ayr Wellness, a multistate marijuana operator with offices in New York and Toronto, agreed to a $101 million acquisition of GSD NJ, a vertically integrated medical cannabis company.

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Ayr, which changed its name in February from Ayr Strategies to Ayr Wellness, said in a statement it will pay:

  • $41 million in cash.
  • $30 million in stock.
  • $30 million in the form of promissory notes.

Earnout payments pursuant to the acquisition agreement will be capped at a maximum of $96.75 million.

Jersey City-based GSD, doing business as Garden State Dispensary, is among a dozen licensed MMJ businesses in New Jersey and one of the state’s original six operators, according to a news release.

Ayr said in a statement that it intends to retain the 110 people now employed by GSD.

The company has three operating dispensaries in New Jersey plus a 30,000-square-foot facility that houses the existing cultivation and production facilities, the release noted. GSD is building an additional 75,000-square-foot cultivation facility.

Ayr, which in December substantially increased a debt offering, either is operating or will be in Arizona, Massachusetts, New Jersey, New York, Ohio and Pennsylvania.

The MSO trades on the Canadian Securities Exchange as AYR.A.