rewrite this title and make it good for SEOMarijuana MSO Ayr Wellness to sell off licenses, ‘wind down’ others

Debt-stricken marijuana multistate operator Ayr Wellness announced a restructuring deal on Wednesday that will see the company sell off its licenses in eight states to satisfy its lenders before “wind(ing) down the remainder of (its) operations.”

That’s a far “more draconian solution” than observers expected for the troubled Miami-based company, according to a Thursday email note from Viridian Capital Advisors, an investment firm.

“It appears that the existing equity will be wiped out entirely,” the note read in part.

“The AYR we know today will cease to exist.”

Ayr Wellness to sell off assets across U.S. to satisfy lenders

The sell-off represents a massive turn of fortune for Ayr, which like many other MSOs enjoyed a brief peak in early 2021.

Shares in the company traded for as much as $35.40 in March 2021. AYR was trading for as little as 3 cents a share on Thursday.

Under the terms of the restructuring deal announced Wednesday:

“Consenting” senior lenders will purchase “certain assets” in Florida, Ohio, Nevada, New Jersey, Pennsylvania, and Virginia.
Those lenders will also offer a $50 million bridge loan at 14% interest, payable monthly, to fund “ongoing operations.”
Those lenders will also be repaid from the proceeds of the sale at auction of Ayr assets.

After the auction, the company will commence “a court-supervised liquidation” pursuant to law in Canada, where the MSO is publicly traded.

After that, “AYR’s subsidiaries may commence certain state law proceedings in various states in the United States to wind-down the remainder of their operations,” the company said.

Proceeds from that sale will go to debt-holders “and otherwise in accordance with applicable law,” the company said.

Ayr Wellness saw debt cliff coming

It’s not clear what that might mean for any vendors or outside companies with claims against Ayr.

Ayr appears to have anticipated the current situation.

In February 2024, the company announced a $40 million raise that also saw nearly $400 million in total debt either retired – or, for the most part, extended to 2026.

The company still had $358 million in debt maturing in 2026, according to filings.

Since then, the company appears to have attempted to cut costs and raise revenue.

Ayr Wellness marijuana assets: 97 stores in 8 states

Ayr announced in March it would sell off four stores in Illinois.

In June, the company also dismissed rumors that it was shopping its permits in Connecticut, where it’s partnered with a marijuana social-equity applicant on cultivation and retail operations.

In its most recent earnings statements, Ayr reported losing $161 million 2024 on revenue of $463.6 million.

The company reported operating 97 stores across the U.S. and last year won the last vertically integrated MMJ permit available in Virginia.

Ayr also reported construction was underway at a 98,000-square-foot cultivation facility in Florida that was expected to start generating revenue in the second half of 2025.