Multistate marijuana operator Ayr Strategies announced that it has increased a $75 million debt offering to $110 million because of strong demand.
The funding reflects a further loosening of capital markets for marijuana companies with operations in high-growth markets, although the cost of capital remains high. The secured notes were issued at a 12.5% interest rate.
Ayr, which is based in New York but has offices in Toronto, has said the proceeds will be used to complete marijuana facilities in Arizona, Ohio and Pennsylvania as well as to fund additional expansion.
The company said it also raised $25 million from investors exercising stock-warrant options, providing Ayr with a total infusion of $135 million in capital.
“Our announced M&A (merger and acquisition) pipeline is fully financed, and we are in a great position to continue to invest in our current operations while we explore other opportunities for expansion,” Ayr CEO Jonathan Sandelman said in a statement.
Ayr also said that its shares resumed trading on the over-the-counter markets. The company’s shares are now trading as AYRWF.
Trading of Ayr’s shares was disrupted last week because of what the company described as “an administrative issue at (the Financial Industry Regulatory Authority).”