Ayr Wellness Expands Florida Investment with Increased Mortgage on Cultivation Facility

LOS ANGELES- In a strategic move to bolster its presence in the burgeoning Florida cannabis market, Ayr Wellness, a prominent multistate operator, has announced an $8.4 million increase in the mortgage for its Gainesville cultivation facility. This adjustment raises the mortgage’s principal to a notable $48.4 million, a decision shared in a detailed announcement late Tuesday.

The additional funds are earmarked for significant investments back into the facility and Ayr Wellness’s overarching Florida operations, alongside general working capital needs. The company’s announcement highlights its commitment to deepening its roots in Florida’s medical cannabis sector, with an eye towards potential future growth areas.

Despite the increase in mortgage size, the terms of the loan itself remain unchanged, with the mortgage set to mature in 2033. Brad Asher, Ayr Wellness’s Chief Financial Officer, emphasized the strategic nature of this financial maneuver. He stated that the enhanced mortgage conditions bolster the company’s financial health by securing additional capital at competitive rates and extending the loan’s maturity.

Asher also pointed out Florida’s unique position in the cannabis market, citing its large population, booming tourism, and the looming possibility of transitioning to adult-use sales as pivotal factors driving the company’s focus on the state.

In February, Ayr took further steps to solidify its financial standing by extending the maturity of its senior notes to 2026, alongside raising an additional $40 million through the issuance of more senior notes. This financial strategy underscores Ayr’s targeted investment in the Florida market, which is predominantly focused on medical cannabis but may soon pivot to include recreational use pending voter approval of proposed legislation.

CEO David Goubert echoed this sentiment, expressing optimism about Florida’s potential to evolve into a significant recreational market. During a recent earnings call, Goubert highlighted the company’s readiness to adapt to changes in the cannabis landscape, not just in Florida but across other states poised for adult-use transitions.

Ayr Wellness’s financial and operational strategies reflect a deliberate approach to leveraging Florida’s dynamic market potential. The company’s shares are currently traded under AYR.A on the Canadian Securities Exchange and AYRWF on over-the-counter markets, marking it as a key player to watch in the evolving cannabis industry landscape.