Multistate marijuana operator Ayr Strategies announced a $75 million secured loan intended to fund acquisitions and complete facilities in Arizona, Ohio and Pennsylvania.
Ayr, which is based in New York with offices in Toronto, said Friday that the senior secured notes from a group of lenders include no equity component.
The $75 million worth of notes will bear 12.5% interest per year and mature in four years, with an additional $25 million over-allotment option.
In a news release, Ayr CEO Jonathan Sandleman characterized the financing terms as “attractive and nondilutive,” and described Ayr as “the acquirer of choice as the U.S. cannabis market enters into another period of consolidation.”
Ayr’s recent acquisitions include:
Separately on Friday, Ayr warned of a temporary disruption in trading of its over-the-counter shares.
“This disruption has been caused by an administrative issue at (the Financial Industry Regulatory Authority), and the company is working with the appropriate parties to correct the situation in order to resume trading as soon as possible,” Ayr said in a news release.
Ayr subsequently announced that its over-the-counter shares would immediately begin trading under a new ticker symbol, AYRWF.
“The most effective and immediate remedy to the situation was for the company to establish a new trading symbol on the OTC Pink Open Market to prevent further delay in trading,” Ayr said in a news release.
Ayr Strategies trades on the Canadian Securities Exchange as AYR.A.