Multi-state cannabis operator AYR Wellness, which has been facing financial struggles in recent months, has now entered a restructuring process that will include asset sales.
In April, the company saw its interim CEO Steven Cohen step down. In May, the company delayed the release of its first-quarter report as it braced for a cease trade order from the Ontario Securities Commission and an upcoming strategic review process. After multiple waivers extending the negotiation process with the company's senior noteholders, AYR has finally settled on a restructuring agreement.
Per the new agreement, AYR's senior noteholders have agreed to purchase certain assets and assume certain liabilities in Florida, Ohio, Nevada, New Jersey, Pennsylvania, and Virginia. The company said it will "continue to evaluate options for maximizing value and minimizing liabilities for its remaining assets."
AYR has also agreed to a $50 million term loan facility that will provide it with the liquidity to support ongoing operations while it continues with the restructuring process.
After the conclusion of the asset sale auction, AYR will commence proceedings under its Creditors Arrangement Act in British Columbia to facilitate a court-supervised liquidation.
“Today marks a major milestone for AYR and the restructuring of its obligations, having agreed to a pathway to reduce its debt and seek to maximize value for all stakeholders,” said Scott Davido, Interim Chief Executive Officer of AYR. “We look forward to continuing to work closely with our lenders as we execute the next steps in our restructuring plan as defined by the RSA.”
