Ayr Wellness posted a third-quarter loss and missed its sales target on Monday, while it separately announced a $55 million acquisition for two cannabis retail stores in Chicago owned by Dispensary 33.
Shares of Ayr Wellness
The company said it’ll pay $12 million in cash, $3 million of seller’s notes and $40 million in stock for Gentle Ventures LLC, which does business under the name Dispensary 33.
The seller owns one dispensary on N. Clark Street in the Andersonville neighborhood, and the another on W. Randolph Street in West Loop, the former industrial meatpacking district now home to restaurants, nightlife and hotels.
Ayr Wellness founder, chairman and CEO Jonathan Sandelman said the company will continue to seek opportunities to grow its presence in Illinois.
Separately, Ayr Wellness said it swung to a third-quarter loss of $3.38 million, or 6 cents a share, from net income of $620,373 or 2 cents a share in the year-ago period. Revenue rose to $96.2 million from $45.5 million.
Analysts expected the company to post a loss of 7 cents a share on revenue of $99.5 million.
Ayr Wellness kept its 2022 revenue estimate at $800 million but reduced its adjusted EBITDA estimate for 2022 to $250 million to $300 million because of “delays in capital projects” and “wholesale market price volatility.” The company previously expected adjusted EBITDA of $300 million for the year.
Separately, Ayr said it would convert its 65 dispensaries to do business under the Ayr brand in 2022, starting with its flagship store in Boston. Its consumer packaged good portfolio will be grouped under four national brands: Kynd and Stix Preroll Co. for cannabis flower; Origyn Extracts for concentrates and vapes and Levia for beverages.
Its six core brands include Road Tripper for flower, Haze for concentrates, Entourage and Secret Orchard for vapes, CannaPunch for beverages; also Secret Orchard and Wicked Sour for edibles.