TORONTO, 04 Dec. 2020 (GLOBE NEWSWIRE) – Ayr Strategies Inc. (CSE: AYR.A, OTCQX: AYRSF) (“Ayr” or the “Company”), a leading vertically integrated multi-state cannabis operator, has received commitments a syndicate of lenders for US $ 75 million in Senior Secured Notes (the “Notes”) with an additional $ 25 million over-allotment option from the Agent. The Notes will bear interest at 12.5% per annum, payable semi-annually, with a maturity of 48 months from closing. The offering is led by Canaccord Genuity Corp. and is expected to be closed by the end of next week.
Speaking on the financing, Ayr CEO Jonathan Sandelman commented, “The attractive and non-dilutive financing terms we are announcing today are the result of the disciplined strategy we put in place when we launched Ayr – committed to superior operational execution in the most attractive markets. . This strategy has enabled us to achieve industry-leading margins and cash flow, strengthening our credit profile and providing access to capital. This, combined with our operational excellence, makes us the buyer of choice as the US cannabis market enters a new period of consolidation.
The Notes will mature four years after their issuance and will also contain certain covenants and restrictions on Ayr’s business, including restrictions on underwriting debts, selling assets, and dividends and other distributions. The Notes, which are expected to be publicly traded after the four-month holding period required under Canadian securities laws, must be secured by a first ranking security interest in specific assets of Ayr and certain of its subsidiaries. . As previously announced, Ayr intends to use the proceeds from the issuance of the Notes, in addition to cash from the proceeds of the exercise of in-the-money warrants and cash from operations, to fund the cash portion of its ongoing acquisitions in Pennsylvania, Ohio and Arizona, as well as additional capital expenditures required for the completion of growing and processing facilities in those states.
The completion of the Offer is subject to final agreements to be concluded by the parties. Closing of the Offering will be subject to compliance with certain conditions, including, but not limited to, receipt of all necessary approvals and the absence of material adverse changes.
Certain information contained in this press release may be forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often, but not always, identified by the use of words such as “target”, “expect”, “anticipate”, “believe”, “expect”, “could”, “may”, “Estimate”, “objective”, “prospect”, “intention”, “plan”, “seek”, “will”, “can”, “continue”, “the pace” and “should” and expressions or similar words suggesting future results. This press release contains forward-looking information and statements concerning, among other things, Ayr’s future growth plans. Numerous risks and uncertainties could cause actual events and results to differ materially from the estimates, beliefs and assumptions expressed or implied in forward-looking statements, including, but not limited to: anticipated strategic, operational and competitive advantages may not be realized; events or series of events, including those related to COVID-19, may cause business interruptions; required regulatory approvals may not be obtained; acquisitions may not be able to be completed on satisfactory terms or not at all; and Ayr may not be able to raise additional debt or equity. Among other things, Ayr has assumed that its business will operate as intended, that it will be able to complete acquisitions on reasonable terms and that all required regulatory approvals will be obtained on satisfactory terms and on schedule. In particular, there can be no assurance that we will complete any pending acquisitions or enter into agreements with respect to other acquisitions.
About Ayr Strategies Inc.
Ayr Strategies (“Ayr”) is a growing, vertically integrated, multi-state US cannabis operator focused on high growth markets. The Company cultivates and manufactures branded cannabis products for distribution through its network of retail outlets and through third party stores. Ayr strives to enrich the consumer experience every day – helping them live their best, uplifted lives.
Ayr’s leadership team brings a proven track record in growing successful businesses through disciplined operational and financial management, and is committed to making a positive impact for customers, employees and the communities they touch. . For more information, please visit www.ayrstrategies.com.
Company details :
Megan Kulick, Head of Investor Relations
T: (646) 977-7914
E-mail: [email protected]
Investor Relations Contact:
Sean Mansouri, CFA or Cody Slach
Investor Relations Gateway
T: (949) 574-3860
E-mail: [email protected]