Ayr Wellness Inc., a leading vertically integrated cannabis multi-state operator, has announced a Definitive Purchase Agreement to acquire Tahoe Hydroponics Company, LLC (“Tahoe Hydro”) and NV Green, Inc. (“NV Green”), producers of best-in-class concentrates.

Tahoe Hydro is an award-winning cultivator and one of Nevada’s top producers of high-quality cannabis flower. Their pre-rolled cones are a top seller. NV Green is the producer of best-in-class concentrates.

Ayr intends to purchase 100% of the membership interests of Tahoe Hydro. The terms of the transaction include, subject to adjustment, $17 million in total consideration, made up of $5 million in cash, $3.5 million in debt, and approximately $8.5 million in stock. Based on current projections, the Company estimates it is paying approximately 4.5x Tahoe Hydro/NV Green’s combined 2021 Adjusted EBITDA. The acquisition of Tahoe Hydro and NV Green adds two cultivation licenses, one production license, and one distribution license to Ayr’s Nevada footprint.

The acquisition will add significant cultivation capacity to Ayr’s Nevada operations. It will also provide them with expanded access to high-quality premium flower for its operations throughout the state, and provide additional capacity to expand its wholesale presence within Nevada.

The Tahoe Hydro acquisition encapsulates Ayr’s strategy to be the largest scale cultivator of high-quality cannabis in every market.

“We could not be more excited to bring their talented team of cultivators into our organization and add their impressive flower to our Nevada wholesale and retail offerings,” said Jonathan Sandelman, CEO of Ayr

The acquisition is subject to customary closing conditions and regulatory approvals.