AYR Wellness Inc. (CSE: AYR.A)(OTCQX: AYRWF) announced that it has extended the maturity of all of its Senior Notes due 2024 and certain other debt by two years. Following these changes, AYR has retired or extended the maturity of nearly $400 million in debt in the past year and now has limited debt maturities until 2026.
“The consummation of the plan of arrangement is the culmination of a series of actions taken over the past year that seek to ensure the financial strength of AYR. These actions are designed to provide AYR with the flexibility to execute on its long term growth strategy and take advantage of positive macro catalysts that are expected in the industry,” said AYR CEO David Goubert. “While we are pleased with the outcome of these transactions, we continue to prioritize cash generation and further cost optimization initiatives to bolster our financial position.”
The company noted in its filing that all of the outstanding 12.5% Senior Secured Notes due December 10, 2024, in the aggregate principal amount of approximately $243.25 million, will be exchanged for the Issuer’s 13.00% Senior Secured Notes due 2026.
Millstreet Credit Fund LP’s share of the company has grown as a result of the recent money moves. The company owned or controlled 7,403 subordinate, restricted or limited voting shares or approximately 0.01% of the issued and outstanding SVS Shares (limited or non-voting) immediately before the Arrangement. Millstreet now holds over 16,318,263 SVS Shares, representing approximately 14.4% of AYR and approximately 11.6% (fully diluted) of the issued and outstanding share capital of AYR. The SVS Shares are held for investment purposes.
In addition to closing the Arrangement, AYR announced that Jared Cohen will be joining the board of directors of the company, subject to receipt of necessary state cannabis regulatory approvals. Cohen is currently a partner at FiSai Investments.
In December, AYR Wellness announced it had opened two new stores in Florida.
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