Ayr Wellness Cannabis Borrows $150M At 9.8% For 3 Years On Heels Of Acquisition Spree

Vertically-integrated cannabis multi-state operator Ayr Wellness Inc. AYR AYRWF announced Friday it has added roughly $150 million to its balance sheet following the sale of additional 12.5% senior secured notes.

Based in Miami, the company reported that it has closed a private placement offering of roughly $133 million aggregate principal amount of notes at a premium price of $1,070 per $1,000.

The resulting yield-to-maturity is 9.8%, while the notes will be considered "additional notes" under the indenture governing Ayr Wellness' existing 4-year 12.5% notes due on December 10, 2024.

The company said that it will utilize the net proceeds from the offering to fund capital expenditures, including construction and improvement costs, acquisitions and general corporate purposes.

In its latest earnings report, the company revealed that its revenue spiked 222% year-over-year, reaching $108.26 million in the second quarter.

"In the last 12 months, we've laid out an ambitious plan for growth – growing our footprint and building our brands on the foundation of being the largest-scale producer of high-quality flower in the country," Johnathan Sandelman, the company's CEO said earlier.

Ayr Wellness' Recent Moves

In August, the company announced the launch of its Origyn Extracts premium concentrates line in Arizona, representing the first of Ayr's national brand portfolio to launch in the Grand Canyon State.

Shortly after, the company moved to a definitive agreement for its previously announced plan to acquire Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers and water-soluble tinctures. Currently available in Massachusetts, Levia Cannabis-Infused Seltzer comes in three experiences and flavors – Achieve Raspberry Lime (Sativa), Celebrate Lemon Lime (Hybrid), and Dream Jam Berry (Indica).

Ayr Wellness also closed acquisition PA Natural Medicine, LLC, an operator of three licensed retail dispensaries, in September, for $80 million in stock and cash, deepening its's presence in the Pennsylvania medical market. Last week, the company opened its seventh affiliated dispensary in the Keystone State.

In New Jersey, the company wrapped up the previously announced $101 million acquisition of GSD NJ, LLC, which is doing business as Garden State Dispensary.

AYRWF Price Action

Ayr Wellness shares traded 1.84% higher at $22.75 per share at the market close on Friday.

Photo: Courtesy of Michael Longmire on Unsplash