Ayr Wellness to initiates CCAA proceedings

AYR Wellness (AYRWF) announces the initiation of proceedings under the Companies’ Creditors Arrangement Act in the Supreme Court of British Columbia. The CCAA proceedings are part of the Company’s restructuring process pursuant to the previously disclosed Restructuring Support Agreement dated July 30. Under the RSA, core assets of AYR’s subsidiaries will be transitioned to a newly-formed acquisition vehicle owned by certain of AYR’s senior noteholders. In connection with the ongoing restructuring process and consistent with the RSA, the Company has authorized the initiation of CCAA proceedings to facilitate an orderly, court-supervised wind-down of the existing AYR corporate parent entity and to support the implementation of transactions contemplated by the RSA. As part of the initial relief to be sought, the Company expects to request the appointment of a licensed insolvency trustee to act as monitor and related customary relief to support the stability of operations during the process. In addition, the board of directors of the Company (the has appointed Mr. Blake Holzgrafe as Interim CEO of AYR’s corporate parent to finalize the orderly wind-down of the parent. Mr. Holzgrafe will serve at the pleasure of the Board, while Mr. Davido will remain an authorized officer of AYR’s various operating subsidiaries. Mr. Davido is expected to become the Interim CEO of NewCo. The Company also announces the execution of the previously disclosed Master Purchase Agreement, as contemplated by the RSA, pursuant to which the collateral assets and equity interests of specified subsidiaries in Florida, New Jersey, Nevada, Ohio, Massachusetts, Pennsylvania and Virginia will be transferred to NewCo, subject to the receipt of necessary regulatory approvals and other customary closing conditions.