Financings Material +

AYR Wellness Announces Closing of Exit Facility and Related Transactions

Restructuring Execution Secures Liquidity Amidst CCAA Wind-Down

By The Northwire Desk — AI Analysis Apr 10, 2026 · 19:08 AYR · 0.155

Executive Summary

AYR Wellness Inc. announced the initial closing of its Virginia operations transfer to Arboretum Virginia LLC and funding of a $275 million senior secured "Exit Facility" loan on April 10, 2026.
The Exit Facility carries a 13% interest rate with a payment-in-kind (PIK) option for the first 24 months, followed by cash payments, maturing in five years.
Security is provided via a first lien on substantially all assets of Arboretum and guarantors.
Existing bridge facility obligations are being rolled into the new Take-Back Facility; future state-by-state rollovers will further reduce leverage.
Senior secured noteholders receive pro-rated shares of new equity in Arboretum Investments LLC as satisfaction of their credit bid amounts, subject to dilution from a management incentive plan.
Concurrently, AYR Wellness is undergoing Companies' Creditors Arrangement Act (CCAA) proceedings in British Columbia to effectuate liquidation and wind-down of the existing corporate parent entity.
Leadership changes include the resignation of Chair Lou Karger (Jan 2026) and Interim CFO Donna Granato (Dec 2025), with Blake Holzgrafe serving as Interim CEO for the wind-down.

Material Impact

The closing of the $275 million Exit Facility is a material positive development for operational continuity, securing immediate liquidity to fund the transition from AYR Wellness Inc. to the new Arboretum/NewCo structure.
However, the 13% interest rate and PIK option indicate high cost of capital; accrued interest will compound debt load during the first two years, potentially straining future cash flow once cash payments commence.
The equity exchange mechanism prioritizes senior secured noteholders over existing common shareholders, suggesting significant dilution or potential value erosion for legacy equity holders as assets transfer to NewCo.
This news confirms the execution of the Restructuring Support Agreement (RSA) and Article 9 auction outcomes from late 2025, reducing uncertainty regarding asset ownership but solidifying the wind-down of the public parent shell.
The transfer of Virginia operations is a key milestone; remaining state-by-state rollovers will determine if the full portfolio can be stabilized under the new facility terms.

AYR · Price

Company Overview

Company: AYR Wellness Inc. (CSE: AYR.A; OTCQX: AYRWF).
Flagship Project: Core cannabis operations in Florida, New Jersey, Nevada, Ohio, Massachusetts, Pennsylvania, and Virginia.
Current Status: Undergoing CCAA restructuring to transfer assets to a new acquisition vehicle ("NewCo" / Arboretum Investments LLC) while the parent entity winds down.
Operations: Recently opened first indoor cultivation facility in Florida (97,580 sq ft) in October 2025 to expand production capacity and product quality.
Strategic Shift: Transitioning from a public operating company to a debt-restructured asset holder under Arboretum Virginia LLC control for specific operations.

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