AYR Wellness, a vertically integrated U.S. multi-state cannabis operator, said it will miss the May 30, 2025 deadline to file its interim financial report and accompanying management’s discussion and analysis.
The company also announced that it has been undertaking a strategic review process given its upcoming payment obligations to its creditors and its desire to continue to execute on its strategic plan. It's brought on an investment banker to help explore capital structure alternatives.
AYR said it has entered into negotiations with a committee of its senior lenders, which represent more than 50% of the company’s outstanding senior secured notes due December 10, 2026. The company said the negotiations are part of a broader review and that it continues to actively assess other strategic alternatives.
As a result of the ongoing negotiations, the company needed to assess the appropriate accounting classifications of certain debt obligations currently under negotiation. It has also applied to the Ontario Securities Commission (OSC) for a Management Cease Trade Order (MCTO).
"Based on their review of the application, the OSC has indicated that it will not proceed with granting the MCTO and will instead issue a failure-to-file cease-trade order (CTO)...," the company wrote in a news release. "Upon issuance, the CTO will prohibit all trading in AYR’s securities in all Canadian jurisdictions for so long as it remains in effect, and will result in a suspension of the company’s shares from trading on the Canadian Securities Exchange (CSE). Once issued, the CTO will remain in effect until the company files the Interim Filings and the CTO is revoked and all CSE requirements are satisfied."
The Company does not expect the CTO to impact its ability to continue to operate in the ordinary course.
