Ayr Acquisitions Keep Coming
After announcing their acquisition of Nevada cultivator Tahoe Hydroponics, Ayr announced yesterday they would be acquiring Herbal Remedies dispensaries. Herbal Remedies operates two dispensary locations in Illinois. Both of the locations are strategically located in Quincy, IL, which is right on the border of Missouri and Illinois. Illinois experiences significant sales from out-of-state customers as non-recreational states surround it. This is an excellent acquisition as Illinois has the highest sales per dispensary of any state in the US at $16.2 Million/Year in average sales per dispensary. However, the state recently announced it would be issuing an additional 185 licenses bringing this number down over time. The transaction terms include consideration of $30 million, made up of $10 million in stock, $12 million in seller notes, and $8 million in cash. Based on current projections, the Company estimates it is paying approximately 5x Herbal Remedies’ 2021 EBITDA. Herbal will add about 50 employees to Ayr’s total headcount.
Clover Leaf Capital SPAC IPO
Clover Leaf Capital announced that it priced its IPO of 12.5 Million units at $10. It started trading under the ticker symbol "CLOEU" and closed yesterday at $10.01. Each unit consists of one share of Class A common stock and the right to receive one-eighth (1/8) of one share of Class A common stock upon the consummation of the Company’s initial business combination. Clover Leaf Capital Corp. is a blank check company SPAC. While it may pursue any business, the SPAC primarily focuses on companies operating in the cannabis industry.
USA Senate Map
For the Cannabis Administration and Opportunity Act to pass, it must have 60 votes in the senate to get past the filibuster. We generated a map to display which state senators are most likely to least likely to vote for the bill. As you can see from the map, we do not expect to receive the votes necessary to pass the bill in its current state. The consensus thinking is that Schumer is most likely to fall back on SAFE, which has more support. There is one big hurdle on passing SAFE - Cory Booker is opposed to just a banking bill. He said on Twitter, "we can both address the pressing need for cannabis businesses to access financial institutions and provide real restorative justice for those harmed by the War on Drugs. This is not a zero-sum game. He went on to say, "By going comprehensive & setting up a post-legalization system, we believe we can build support & make progress on this issue. SAFE Banking lacks critical restorative justice provisions & we must do more to help communities unfairly impacted by the War on Drugs. What is needed now is movement on adding a social equity element to SAFE? There is no reason we can't make SAFE "more equitable," as the current system now makes banking and loans discriminatory to communities of color (even in legal industries that don't have to deal with the stigma of cannabis.) We are working to refine our thinking around the current state of legalization. States with a number that is not a whole number have split state senators (Ex. One Democrat, One Republican).
