Ayr Wellness has signed a letter of intent to sell its four marijuana stores in Illinois because the company doesn’t have the scale to compete over the long term.
“We’re taking a hard look at other markets to make sure we are prioritizing those core markets that will deliver for our business,” Ayr President George DeNardo said Thursday during the company’s fourth-quarter and full-year 2024 earnings call.
Asked by MJBizDaily for more details on the pending sale, a company spokesperson said, “None of that information is public at this time.”
Ayr’s decision to sell its four Illinois stores was first reported by Green Market Report.
The MSO will continue to consolidate its facilities in its core markets, said DeNardo, who in January was promoted from chief operating officer to CEO.
Ayr began the consolidation process in 2024 by closing a manufacturing facility in Nevada and subleasing its original medical marijuana cultivation and manufacturing facility in Massachusetts.
The company plans to close a second cultivation facility later this month and consolidate its grow operations into a single facility, DeNardo said.
Meanwhile, Ayr will more than double its flower production when the company’s indoor cultivation facility in Ocala, Florida, is fully operational, according to DeNardo.
Ayr’s stores in Florida account for about 70% of its retail network.
“This facility will complement our existing Gainesville facility directly addressing our current deficit in premium flower production, which is a highly sought-after category by customers,” DeNardo said.
The company also is focused on scaling its business in Ohio, where adult-use sales during the fourth quarter contributed “meaningful increases in both retail and wholesale revenues,” DeNardo said.
Ayr operates four adult-use stores in Ohio and plans to open a fifth store in the state later this month.
Shares of Ayr trade as AYR.A on the Canadian Securities Exchange and AYRWF on the over-the-counter markets.
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