Marks Significant First Step Toward Adult-Use Market Entrance in 2021
Map of Greater Boston
Map of Greater Boston
TORONTO, Nov. 18, 2020 (GLOBE NEWSWIRE) -- Ayr Strategies Inc. (CSE: AYR.A, OTCQX: AYRSF, “Ayr” or “the Company”), a leading vertically integrated cannabis multi-state operator, today announced its local partner Sira Naturals (“Sira”) has received three host community approvals to meaningfully expand its existing medical footprint, as well as begin the final preparations for adult-use sales in Boston, Somerville and Watertown, Massachusetts. The approvals for Host Community Agreements (“HCAs”) mark a significant first step toward the Company’s entry into the adult-use market in the Greater Boston area, with a population of 4.9 million.
“We are thrilled to have received these key approvals toward entering the adult-use retail market in Massachusetts, especially in the underserved Greater Boston area where we have prime store locations. We believe these locations will be the best footprint of adult-use dispensaries in Massachusetts, and we have been highly selective in seeking these locations given we are limited by regulation to a maximum of three adult-use dispensaries in the state. The Massachusetts adult-use market has grown to an estimated US$900 million annualized run rate¹. But given that the Greater Boston area, where over 60% of the state’s population lives, has only three adult-use dispensaries currently open, we believe there is material unmet demand. With existing medical sales at our Somerville and Needham stores, the addition of co-located medical and adult-use stores in Somerville and Watertown, and the approval of our landmark adult-use Boylston Street store in the heart of Boston’s Back Bay, we hope to address Greater Boston’s unmet demand for quality, tested and safe cannabis,” said Ayr Strategies CEO Jon Sandelman.
Map of Greater Boston: https://www.globenewswire.com/NewsRoom/AttachmentNg/30fad8cf-703f-4d23-a8b7-7bdcad41fee0
“Our business is already ranked #1 in Massachusetts according to BDS Analytics due to the exceptional quality of our products and the strength of our wholesale distribution channel. Now, upon the opening of our new locations, adult-use consumers in the Boston area will have access to these products directly through our retail channel. Our team has diligently worked with the regulators and the Somerville, Watertown and Boston communities to get to this point, and we intend to continue these collaborations to seek to ensure a safe and timely transition into the adult-use market in 2021,” Mr. Sandelman concluded.
On November 16, 2020, Sira fully executed an HCA with the City of Boston’s Cannabis Board to operate an adult-use dispensary at 829 Boylston Street in Boston. The planned 4,500 ft² store is located next to the Apple Store and across from the Prudential Center in the heart of Boston’s Back Bay, a popular residential community as well as New England’s preeminent destination for shopping and dining, and home to many financial and tourist businesses. The Sira Boylston Street location is well positioned for pedestrian traffic and easy access to public transit.
On October 9, 2020, the City of Somerville Marijuana Advisory Committee recommended Sira be offered an HCA to co-locate an adult-use dispensary with Sira’s existing medical-use dispensary in Davis Square, a popular neighborhood in the city of Somerville, one of the most densely populated neighborhoods in New England. The Somerville location reaches a nearby population of nearly 900,000³. Sira has been operating as a medical-only dispensary since September 2017 and expects only minimal changes to the existing 5,000 ft², 9 point-of-sale lay-out ahead of adult use sales.
Following unanimous approval of the Town Council, on October 20, 2020, Sira executed an HCA with the Town of Watertown approving the Company to operate co-located medical- and adult-use sales. Watertown, which borders the City of Boston, Cambridge, Waltham, Brookline and Newton in Greater Boston, serves a nearby population of 680,000³. Sira’s Watertown dispensary is centrally located in the heart of Watertown’s burgeoning downtown at 48 North Beacon Street, directly off major arteries into downtown Boston, along Soldiers Field Road (Route 20) and the Massachusetts Turnpike (Route 90). When renovations at the facility are complete, the 3740 ft² store is expected to provide for 10 points-of-sale and ample parking at 23 spaces.
The Company intends to continue to work closely with the Massachusetts Cannabis Control Commission to receive final approval to commence operations in Boston, Watertown and for adult-use in Somerville. Ayr intends to also continue to invest in local and diverse hiring and workforce development initiatives, making direct and meaningful investments in the communities in which we operate, while continuing to support economic empowerment entrepreneurs.
¹ Based upon August 2020 monthly adult use sales reported by the Massachusetts Cannabis Control Commission
² Somerville currently open for medical-only
³ 5-mile radius population per SEDAC Population Estimation Service
Certain information contained in this news release may be forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often, but not always, identified by the use of words such as “target”, “expect”, “anticipate”, “believe”, “foresee”, “could”, “would”, “estimate”, “goal”, “outlook”, “intend”, “plan”, “seek”, “will”, “may”, “tracking”, “pacing” and “should” and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, Ayr’s future growth plans. Numerous risks and uncertainties could cause the actual events and results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: anticipated strategic, operational and competitive benefits may not be realized; events or series of events, including in connection with COVID-19, may cause business interruptions; required regulatory approvals may not be obtained; acquisitions may not be able to be completed on satisfactory terms or at all; planned new stores may not be able to be opened or may not be as successful as contemplated; and Ayr may not be able to raise additional debt or equity capital. Among other things, Ayr has assumed that its businesses will operate as anticipated, that it will be able to complete acquisitions on reasonable terms, that planned stores will open and operate as anticipated, and that all required regulatory approvals will be obtained on satisfactory terms and within expected time frames. In particular, there can be no assurance as to the timing of necessary regulatory approvals to commence operations at the new locations highlighted in this release.
About Ayr Strategies Inc.
Ayr Strategies (“Ayr”) is an expanding vertically integrated, U.S. multi-state cannabis operator, focusing on high-growth markets. With anchor operations in Massachusetts and Nevada, the company cultivates and manufactures branded cannabis products for distribution through its network of retail outlets and through third-party stores. Ayr strives to enrich consumers’ experience every day – helping them to live their best lives, elevated.
Ayr’s leadership team brings proven expertise in growing successful businesses through disciplined operational and financial management, and is committed to driving positive impact for customers, employees and the communities they touch. For more information, please visit www.ayrstrategies.com.
Megan Kulick, Head of Investor Relations
T: (646) 977-7914
Investor Relations Contact:
Sean Mansouri, CFA or Cody Slach
Gateway Investor Relations
T: (949) 574-3860