Ayr Wellness Inc. Cancels Planned Acquisition in Chicago, Curaleaf and Trulieve Cannabis Make Strategic Decisions in Response to Market Challenges
Ayr Wellness Inc. (AYRWF) (CA:AYR) announced on Friday that it will not be moving forward with its previously planned acquisition of two dispensaries in Chicago for $55 million. The decision was made due to significant changes in the cannabis market over the past 15 months. Instead, the company will focus on optimizing its business operations, implementing cost-saving measures. Ayr has reached a mutual termination agreement with Gentle Ventures LLC, also known as Dispensary 33, for the two licensed retail dispensaries in Chicago.
Curaleaf, another cannabis company, has also announced its decision to pull out of California, Colorado, and Oregon. This move is in response to cannabis price compression and challenges posed by illicit sales. The marijuana industry has faced a difficult year, with limited prospects for a near-term turnaround.
Trulieve Cannabis (TCNNF) (CA:TRUL) has reached a voluntary agreement with the Occupational Safety and Health Administration (OSHA) to conduct a study by May 29 to determine if ground cannabis dust should be classified as a hazardous chemical in occupational settings, as per OSHA regulations. In the meantime, the company will implement a temporary information and training program to educate employees about potential allergic reactions from working with ground cannabis dust and the necessary steps to take if they experience symptoms. Trulieve has also successfully reduced a $35,219 fine from OSHA to $14,502.
Ayr Wellness Inc. has decided to cancel its acquisition plans in Chicago, while Curaleaf and Trulieve Cannabis have made strategic decisions to adjust their operations in response to challenges in the cannabis market.
