🎙️ AYR Wellness, Interim CEO, Steven M Cohen

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Press Release / Links

Management Presentation

November 13, 2024—AYR Wellness Reports Third Quarter 2024 Results

November 12, 2024—Amethyst Health, a Partnership Between Black Star Wellness and AYR Wellness, Conditionally Awarded Vertically Integrated Medical License in New York

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Summary

CEO Transition. The departure of the previous CEO, Dave Goubert, was amicable and due to personal decisions rather than conflict. The industry's challenges and unpredictability are a significant factors affecting leadership roles.

Florida’s Amendment 3 and AYR’s Position. The failure of Florida's Amendment 3 was disappointing but not unexpected due to the high 60% threshold and turbulent election dynamics. AYR Wellness remains focused on Florida as a vital long-term market and will continue to invest strategically.

Financial Concerns and Debt Management, The Company is focused on fundamentals and long-term business strategy rather than short-term market reactions. Noteholders are supportive and aligned with management on the long-term plans.

Strategic Market Prioritization. Five markets the company is prioritizing:

• Florida: Remains a top priority for its market potential despite setbacks. Progressing on buildout of 100k sq foot cultivation facility in Ocala with contributions anticipated for early 2H/25. New facility will more than double flower capacity in state and enable the sale of premium in-door grown flower. Expand retail footprint with plans to end year with 68 stores. Long-term target of

  maintaining current retail store market share (~10%)

• Ohio and Pennsylvania: Targeting eight AYR-branded stores open in first half 2025 (3 open today), leveraging additional licenses awarded as part of the

  adult-use rollout in connection with affiliated licenses. Sees Pennsylvania seen as a the next adult-use legalization

• Virginia and New York: Virginia represents a new and growing medical market with future adult-use opportunities (other states with equivalent population suggest >$1.5B annual sales opportunity). The company’s community-focused approach and strategic placement in underserved areas, should help it perform in New York

Future Outlook. Cohen underscored the importance of disciplined, strategic decision-making to build AYR’s long-term success. Despite current challenges, he remained confident in the company’s trajectory, leadership, and ability to thrive in the evolving cannabis industry.

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