Ayr Strategies (CSE: AYR.a) has signed a definitive agreement as of today to enter the state of Arizona. The company has pushed forward with a previously announced letter of intent to acquire that of Blue Camo, LLC.

Blue Camo currently has vertically integrated operations in Arizona, consisting of three Oasis-branded dispensaries in the Pheonix area, along with a cultivation and processing facility in Chandler and a currently under construction cultivation facility in Phoenix. Furthermore, the three dispensaries have been approved for adult-use cannabis within the state, with such sales commencing on Monday.

Under the terms of the transaction, Ayr Strategies is to pay an aggregate of $75.4 million up front. Payment is to consist of $9.5 million in cash, $37.4 million in shares of the company, with an estimated 2.57 million shares to be issued, as well as a $28.5 million sellers note. An additional 2 million shares have been placed in escrow, pending certain production targets being achieved at the new facility. Additional earn-out provisions also exist for 2021 and 22, to be paid based on adjusted EBITDA figures.

The transaction is currently expected to close in late March.

Ayr Strategies last traded at $33.00 on the CSE.

Information for this briefing was found via Sedar and Ayr Strategies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.