On February 7, 2024, Ayr Wellness Inc., a U.S. multi-state cannabis operator, announced the completion of its court-approved plan of arrangement under Section 192 of the Canada Business Corporations Act (CBCA), initially announced on November 15, 2023. The restructuring involved the exchange of $400 million in 12.50% senior secured notes due December 2024 for new 13.0% senior secured notes maturing in December 2026, issued by Ayr Wellness Canada. Ayr also issued 29 million subordinate voting shares to noteholders, representing 24.9% of its pro forma fully diluted share capital, and granted 23 million anti-dilutive warrants to existing shareholders. The company raised $50 million through the issuance of new 13.0% senior secured notes, enhancing financial flexibility.

Moelis & Company LLC served as exclusive financial advisor to Ayr Wellness. Stikeman Elliott LLP and Weil Gotshal & Manges LLP acted as Canadian and U.S. legal counsel to the company, respectively. Ducera Partners LLC advised the supporting senior noteholders, with Goodmans LLP and Paul Hastings LLP serving as Canadian and U.S. legal counsel, respectively. The recapitalization aimed to strengthen Ayr’s financial position and support its long-term growth strategy in the cannabis industry.