- Ayr Wellness ( OTCQX:AYRWF ) said Thursday it would sell its Blue Camo business, which comprises of the company's Arizona assets, to AZ Goat for $20 million cash.
- The sale includes three Oasis-branded dispensaries in the greater Phoenix area, a 10,000 sq. ft. cultivation and processing facility in Chandler, an 80,000 sq. ft. cultivation facility in Phoenix, and Willcox OC, LLC, a joint venture developing an outdoor cultivation facility.
- Ayr said additional cash proceeds from net working capital are to be received within six months of closing the transaction.
- In addition, AZ Goat intends to assume lease obligations that will result in the elimination of about $15 million in long-term lease liabilities for Ayr.
- In a separate arrangement, all potential earn-out contingent consideration and debt outstanding related to the Q1 2021 purchase of Blue Camo are to be eliminated, reducing Ayr’s long-term debt by $22.5 million.
- The sale is subject to certain closing conditions and regulatory approvals, with an anticipated closing in H1 2023.
For further details see:
Ayr Wellness sells Blue Camo business for $20M to AZ Goat