Ayr Wellness Inc. closed its acquisition of Garden State Dispensary Sept. 15, snagging one of the state’s 12 existing vertically integrated cannabis business permits and one of its original six alternative treatment centers.
GSD has three open dispensaries in Woodbridge, Eatontown and Union, as well as approximately 30,000 square feet of operational cultivation and production facilities. An additional 75,000 square feet of cultivation is under construction.
The New Jersey Cannabis Regulatory Commission approved CSAC Acquisition NJ Corp., a wholly-owned Ayr subsidiary, to acquire 100% of the membership interests in GSD NJ LLC, on Sept. 14.
Total up-front consideration of $101 million includes $41 million in cash, $30 million in exchangeable shares and $30 million in the form of a promissory note, according to an announcement. Earn-outs based on exceeding revenue target thresholds in 2022 will be capped at a maximum of $97 million and payable in a combination of cash, promissory notes and exchangeable shares.
“We are thrilled to be welcoming Garden State Dispensary to the Ayr team and for the opportunity to serve the New Jersey cannabis marketplace. New Jersey presents a tremendous opportunity for Ayr, with high population density, a noted demand for cannabis, a disciplined license structure and adult-use sales rapidly approaching. We look forward to introducing the great people of New Jersey to our quality offerings, including key brands such as Origyn Extracts and Kynd premium flower, via our three retail locations and in the broader wholesale market,” said Jonathan Sandelman, founder, chief executive officer and chairman of Ayr, a multi-state operator based in Miami.
New Jersey marks Ayr‘s eighth state of operation.