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MIAMI – AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a prominent U.S. cannabis company, has received permission from the Ontario Superior Court of Justice and the province's cannabis regulator to proceed with its restructuring plan. The plan is based on statutory arrangements and involves the exchange of senior secured notes and the issuance of new shares and stock acquisition rights.
The arrangement is expected to close on or around February 7, 2024, and includes the Company's existing 12.50% senior secured notes due December 10, 2024, and a new bond due December 10, 2026. Includes exchange for 13.0% senior secured notes. These new bonds will be issued. Guaranteed by AYR Wellness Canada, a wholly owned subsidiary, and guaranteed by AYR Wellness and its subsidiaries.
In addition to the Exchange Notes, approximately 24.9% of our fully diluted external capital is represented by subordinated stock, restricted stock or limited voting stock issued to the holders of the New Exchange Notes. Additionally, approximately 16.5% of our fully diluted pro forma capital is represented by anti-dilution warrants issued to stockholders of record as of February 5, 2024.
AYR Wellness Canada also intends to issue an additional $50 million aggregate principal amount of 13.0% senior secured notes due December 10, 2026, subject to a 20% initial issue discount. As part of the Backstop Commitment, approximately 5.1% of pro forma fully diluted capital in subordinate voting shares will be issued to the Backstop Parties.
The Company's management information circular dated November 15, 2023 contains details of the agreement and was distributed to senior security holders in advance of the special general meeting to be held on December 15, 2023.
AYR Wellness has over 90 licensed dispensaries and operates as both a retailer and manufacturer of cannabis consumer packaged goods. The company emphasizes its commitment to quality products and corporate responsibility.
Completion of the agreement remains subject to certain conditions and there can be no assurance that it will be completed as planned. Moelis (NYSE:) & Company LLC and Stikeman Elliott LLP are advising AYR Wellness, along with Weil Gotshal & Manges LLP, and are advising the senior noteholders supported by Ducera Partners LLC, Goodmans LLP and Paul Hastings LLP. going.
Investment Pro Insights
As AYR Wellness Inc. (AYRWF) moves forward with its turnaround plan, investors and stakeholders are keeping an eye on the company's financial health and market performance. According to real-time data from InvestingPro, AYR Wellness has a market capitalization of $266.8 million, which reflects the company's current valuation in the market. Despite a challenging fiscal year with a price-to-earnings ratio (P/E) of -1.09, the company has shown resilience with revenue growth of 21.09% over the past 12 months as of Q3 2023. This growth demonstrates AYR Wellness' capabilities. It has the potential to increase sales and improve your market position.
A notable tip from InvestingPro is that AYRWF is operating with a significant amount of debt. This is an important consideration for investors as the company moves forward with an exchange of senior secured notes. Furthermore, while the stock has experienced volatility, it has also seen a strong return over the last year with a total stock return of 169.32%. These insights could be critical to investors evaluating the risks, potential, and future prospects of AYRWF's restructuring plans.
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