Multi-state cannabis operator Ayr Wellness said it intends to sell off its assets in Illinois and exit the market.
During the company’s fourth-quarter earnings call last week, president and COO George DeNardo said Ayr has been working on identifying inefficiencies and acting to clean them up.
“That means investing in the markets that we believe in and where we have a pathway to succeed and to move on from the ones that don't make sense from where we are as a business,” he said, calling Illinois a market where the company doesn’t have the necessary scale to compete over the long term.
Ayr runs four dispensaries in Illinois: one in Hometown, one in Normal and two in Quincy. The company didn’t disclose the name of the buyer or the terms of the transaction.
Despite exiting Illinois, Ayr still has an extensive footprint including retail stores in Connecticut, Florida, Massachusetts, Nevada, New Jersey, Ohio and Pennsylvania. But the company said it’s reviewing its other assets, suggesting that further divestments are possible.
“We're taking a hard look at other markets to make sure we are prioritizing those core markets that will deliver for our business,” said DeNardo.
Ayr last year closed its Ponderosa manufacturing facility in Nevada and the sublease of its original medical cultivation and manufacturing facility in Massachusetts. It plans to further streamline its Nevada operations by closing its secondary cultivation site later this month and consolidating cultivation in a single facility with cultivation, manufacturing and distribution capabilities
