Florida-based Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced Wednesday that it landed $50 million in new financing and also restructured some of its debt to give the company two additional years on terms, delivering the business some much-needed financial breathing room.
Ayr, which posted a $30.6 million loss in its most recent quarter after losing $255 million in 2022, informed shareholders that it has landed $50 million in debt financing from one of its existing lenders, which could give Ayr as much as $40 million in cash to work with.
Ayr is carrying $854.7 million in total liabilities, according to its second quarter financial filings.
Also this week, Ayr successfully negotiated an extension on the repayment terms for $400 million of its debt by another two years, although multiple deals that would comprise the agreement have yet to fully close, the company reported.
The extension follows a similar move the company made earlier this year to delay repaying $69 million in debt, which was “aimed at further strengthening Ayr’s balance sheet,” CFO Brad Asher said at the time.
This week, CEO David Goubert said the financial pivots are “the culmination of a series of actions taken in recent months to transform Ayr’s balance sheet and protect the financial health of the company. We believe that these actions will provide Ayr the financial flexibility to execute on its long-term growth strategy, while continuing to prioritize cash flow generation and further optimization initiatives.”
The transactions that would extend the debt payment terms still need to be approved by an Ontario court, Ayr noted in a press release.
In yet another financial development, Ayr also reported that it amended a 2019 loan from LivFree Wellness LLC. Under the new agreement, Ayr will pay LivFree $3 million “upon closing of the transaction” and an added $5 million in interest through May 2026, with $17 million on the principal loan deferred.
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