In a deal valued at potentially $40 million, Ayr Wellness Inc. is buying Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers. The terms of the transaction include $20 million in upfront consideration, made up of up to $10 million in cash with the remainder in stock. The acquisition is expected to close by the end of 2021.
Currently available in Massachusetts, Levia Cannabis-Infused Seltzers allow for rapid onset of the effects of THC, typically 15-20 minutes. This allows for a more consistent consumption experience than many edible products.
“Ayr wants something exciting to offer every cannabis consumer of today and the future cannabis customer of tomorrow. Infused beverages, done right, will be game-changing to the mainstreaming of cannabis in the U.S., providing an approachable and sessionable form factor to new and existing customers,” said Jonathan Sandelman, CEO of Ayr Wellness. “We are excited to have Levia join Kynd premium flower and Origyn extracts in Ayr’s suite of premier national brands.”
“With a formula that provides consistently great flavor and zero calories in an infused beverage experience, we believe Levia has enormous potential as an alcohol alternative. In just six months since its initial launch in Massachusetts, Levia has become the top-selling THC beverage,” Mr. Sandelman said.
Stifel Research recently completed a survey among cannabis consumers and learned that many new customers were trying edibles and beverages as a discreet way to try the product. Female consumers were 11% more likely to purchase a cannabis beverage said another recent study.