As part of its expansion this year, Ayr Strategies has finally completed its purchase of DocHouse LLC, a licensed grower, and processor in Pennsylvania. In a press release posted on Globe News Wire, it was revealed that Ayr acquired 100% equity in the Pottsville-based company. With this acquisition, Ayr will now have operations in various parts of the United States including Massachusetts, Nevada, Arizona, and Ohio.
This acquisition cost Ayr a total of $20.8 million, composed of $16.7 million in cash, $2.1 million in stock, and $2 million in seller notes. With this purchase, the company will manage DocHouse’s 38,400 square feet cultivation and extraction center. This facility can be expanded to 74,000 square feet, almost twice its current size. Ayr’s operation of the facility will begin in 2021.
Air Strategies is a vertically integrated cannabis operator across multiple states with a focus on high-growth markets. It cultivates top quality cannabis and manufactures branded products for distribution across its nationwide network and third-party partners.
The acquisition was announced in early October, according to The Philadelphia Inquirer. DocHouse chief executive Justin Moriconi did not make any comments regarding the news. However, the PA Department of Health said that DocHouse will be operational in December. It also has not shipped any products to third-party retailers.
Ayr chairman and chief executive officer Jonathan Sandelman are optimistic about this movie. He said, “Pennsylvania is a terrific medical market where demand is robust, but supply is not. With the completion of this acquisition, we can now bring out cultivation and processing expertise to the Pennsylvania market and improve patients’ access to quality cannabis.”
Sandelman is also positive about its role in exemplifying the cannabis market in the state. He said, “Our entry in Pennsylvania will build on the successful operational foundation we have established in Massachusetts and Nevada, where our cultivation and production talent has driven both meaningful top-line growth and increased profitability through efficiencies and sharing of best practices. We look forward to welcoming the DocHouse team in Pennsylvania to the Ayr family.”
Aside from DocHouse, Ayr has also announced the acquisition of CannTech PA, which is based in the Pittsburgh suburbs. It was included in a $55 million package that covered permits for five dispensaries. The company will receive $25 million cash, $15 million stocks, and $15 million worth of seller notes.
With this purchase, Ayr will be working with Lake Erie College of Osteopathic Medicine through CannTech PA. This partnership seeks to conduct research in accordance with the PA medical marijuana program.
However, The Philadelphia Inquirer noted that it is unclear whether the state’s Department of Health will be allowed to hold two permits for growing centers. It is important to note that the medical marijuana program in Pennsylvania only allows for a total of 33 growers, with 25 commercial facilities and eight under research programs.
Aside from PA acquisitions, Ayr has also made a deal with one of the biggest growing facilities in Ohio with $18.2 million.