- Pursuant to a definitive agreement, Liberty Health Sciences (LHS) will be acquired by fellow cannabis company AYR Strategies (AYR.A)
- The acquisition will take place via a stock-for-stock combination worth US$290 (approximately C$374 million)
- Following the transaction, AYR Strategies plans to improve and expand Liberty Health’s Gainesville cultivation campus and dispensary footprint
- Liberty Health Sciences is up 62.96 per cent, and is currently trading for $0.88 per share
- AYR Strategies is down 1.69 per cent and is currently trading for $28.00 per share
Pursuant to a definitive agreement, Liberty Health Sciences (LHS) will be acquired by fellow cannabis company AYR Strategies (AYR.A).
Both companies are vertically integrated cannabis operators, although Liberty Health currently operates primarily in Florida. On the other hand, AYR Strategies is a leading multi-state operator.
Under the definitive agreement, AYR Strategies will acquire Liberty Health via a stock-for-stock combination, taking the form of a Plan of Arrangement. Shareholders in Liberty will receive 0.03683 AYR shares for each Liberty share they hold.
Based on the closing price of AYR shares on December 21, this transaction will be worth roughly US$290, or approximately C$374 million.
Through the acquisition, AYR will gain Liberty assets, including a 387-acre cultivation campus in Gainesville, Florida with over 300,000 square feet of current production facilities in operation. Additionally, the company will acquire 28 open retail dispensaries, seven completed and ready-to-open dispensaries, and seven dispensaries that are still under construction.
All 335 people currently employed by Liberty are expected to be retained by AYR after the acquisition. Following the transaction, AYR plans to improve and expand Liberty’s Gainesville cultivation campus and dispensary footprint.
AYR Strategies’ Chairman and CEO, Jonathan Sandelman, called the acquisition a transformational next step for the company as a multi-state operator in the US.
“Our strategy has always been to go deep in the best markets, targeting attractive assets in limited-license states with large populations, where we can build a vertically integrated presence and have a significant edge,” he said.
“We see an incredible opportunity to elevate Liberty’s cultivation, product selection and dispensary experience to the level of quality, productivity, selection and service we have consistently achieved in our existing markets with the deep bench of talent and know-how we already have in place,” he added.
Liberty Health Sciences is up 62.96 per cent and trading for $0.88 per share, as of 2:31pm EST.
AYR Strategies is down 1.69 per cent and is trading for $28.00 per share, as of 2:31pm EST.