Air Wellness Q1 Revenues Up 90% YoY; Acquires Herbal Therapy Pharmacy – Air Wellness (OTC:AYRWF)

Air Wellness Co., Ltd. (OTCQX:AYRWF)(CSE:AYR) announced its financial results for the three months ended March 31, 2022, revealing: Revenue was $111.2 million, 90% increase compared to the previous year.

First quarter and recent highlights

• Q1 2022 Adjusted EBITDA of $19.5 millionup 6% from the previous year

• US GAAP Operating loss was $21.1 million. $8.4 million each in Q1 2022 and Q1 2021.

• Received final approval for adult-use sales in New Jersey and Boston

• On May 18, Ayer completed the first sale of its new 80,000 square foot Phoenix cultivation facility. At the same time, the company launched a national pre-roll brand; STiX pre-roll company In Arizona.

• The company opened two new pharmacies in the first quarter and two more stores in April and May. This brings Ayr’s total number of stores to 47 in the state.

• On sale now entourage One of the company’s 10 national brands, VAPE, Kynd Premium Flower, and STiX, can be found in all 47 dispensaries in Florida.

M&A highlights

• closed acquisition Cultivana LLC, owner of Levia February 15, 2022, branded cannabis-infused seltzers and water-soluble tinctures.

• Signed a comprehensive management service contract with tahoe hydroponics and NV Green Co., Ltd. Pursuant to the final agreement signed in July 2021, it will be concluded on February 1, 2022.

• Completed acquisition of Herbal Remedies Dispensaries, LLC May 25, 2022, operator of two licensed dispensaries in Illinois.

Financing and capital structure

• The company ended the quarter with the following results. Cash balance is $78.7 million.

• As of March 31, 2022, the number of fully diluted shares outstanding based on financial method calculations is approximately 70 million shares.

• The company made $33.2 million in capital expenditures in the first quarter and expects to make an additional $37 million in capital expenditures for the remainder of 2022.

• During the first quarter, the company secured $26.2 million in mortgage loans at an interest rate of 4.625%. The loan marks Ayer’s first monetization of his $180 million real estate portfolio. Following the end of the quarter, Ayr completed a second real estate financing with a principal amount of $25.8 million and an interest rate of 5.5%. Together, these financings give the company $52 million in capital and an industry-leading blended interest rate of 5.06%.

Jonathan SandelmanFounder, Chairman and CEO of Air said: We will continue to unlock revenue streams from these various assets in the future, including the launch of adult-use sales in New Jersey and Boston. Although the Company made significant investments in these assets ahead of the revenue benefits, which temporarily lowered operating margins, these investments will strengthen the Company’s future earning power and improve its performance in the second half of the year. We expect both sales and bottom line to improve. In 2022, these assets will come online and begin to grow. ”

Outlook

To date in 2022, the company has made progress on milestones supporting its fourth quarter 2022 expectations. like that, Air continues to expect an annual run rate of $250 million in adjusted EBITDA, $100 million in operating income and $800 million in revenue in the fourth quarter of 2022.

Photo: Provided by Air Wellness Co., Ltd.

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