AYR Wellness Inc. has closed the sale of Blue Camo, LLC, which comprises the company’s Arizona assets, to AZ Goat AZ, LLC, a group consisting primarily of the former owners of Blue Camo, who sold the business to AYR in 2021.
The sale includes two licensed entities operating three Oasis-branded dispensaries in the greater Phoenix area, a 10,000-sq.-ft. cultivation and processing facility in Chandler, an 80,000-sq.-ft. cultivation facility in Phoenix, and AYR’s majority interest in Willcox OC, LLC, a joint venture developing an outdoor cultivation facility.
AYR received $20 million in cash, with additional cash proceeds from net working capital to be received in the next six months. In addition, AZ Goat AZ has assumed lease obligations that resulted in the elimination of approximately $15 million in long-term lease liabilities for AYR.
In a separate arrangement, all potential earn-out contingent consideration and debt outstanding related to the 2021 purchase of Blue Camo has been eliminated, reducing AYR’s long-term debt by $22.5 million.
“I am pleased to announce the swift closing of the sale of our Arizona assets,” said David Goubert, president & CEO of AYR. “This transaction strengthens our balance sheet by adding cash and reducing net debt and long-term operating leases by approximately $55 million, while improving our working capital position. Finalizing this transaction is the latest step in our optimization plan as we look to streamline our business and prioritize investment into our most profitable assets.”
“We are pleased to have worked with the AYR team in completing this mutually beneficial transaction and re-entering Arizona, a market in which our team has deep roots,” added AZ Goat CEO Jason Vedadi.