Adam JacksonAyr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced on Monday that it has entered into a real estate financing agreement with Maryland-based Innovative Industrial Properties Inc. (NYSE: IIPR) to develop a new indoor cultivation facility in Ocala, Florida.
Under the terms of the deal, Ayr will lease a 16-acre property from IIP, which includes 145,000 square feet of industrial space. The company plans to redevelop a 98,000 square foot building on the site into a state-of-the-art cannabis cultivation facility, with IIP providing up to $30 million in construction funding.
Ayr expects the construction to be completed by mid-2025, with the first harvest anticipated shortly thereafter. The Ocala facility is expected to help meet the growing demand for high-quality indoor-grown cannabis flower in Florida’s $2.5 billion medical marijuana market, according to Ayr CFO Brad Asher.
“We are proud to partner once again with IIP to create an attractive real estate financing solution,” Asher said in a statement. Ayr previously partnered with IIP on an 11,000 square foot processing facility in Ohio.
Florida voters are set to decide on the potential legalization of adult-use cannabis in a November ballot initiative. If the measure passes with the required 60% approval, licensed medical cannabis operators like AYR would be positioned to expand into the recreational market.
Ayr Wellness said it currently operates 64 dispensaries in Florida and over 90 retail locations nationwide. In recent financial results, the company reported revenue of $118 million in the first quarter of 2024, up slightly from the prior year. AYR also extended the maturity on nearly $400 million of debt to 2026, providing additional financial flexibility.
The company said on Monday that it expects modest revenue growth in the first half of 2024 before stronger growth later in the year, fueled by potential adult-use transitions in key markets like Florida, Pennsylvania and Ohio.
One comment
Greg Serpis
February 14, 2025 at 2:13 pm
2/14/25
Would you know the address of the new AYR Wellness 98,000 S.F grow facility in Ocala, Fl.
I’m inquiring on a Facilities Manager position for this new location.
Any info would greatly be appreciated.
Thanks