Ayr Strategies Provides Business Update

Remains Adjusted EBITDA Positive April to Date and 2020 Year to Date
Successfully Pivots Business in Nevada and Massachusetts

TORONTO, April 22, 2020 (GLOBE NEWSWIRE) -- Ayr Strategies Inc. (CSE: AYR.A, OTCQX: AYRSF) (“Ayr”), a vertically-integrated cannabis multi-state operator (MSO) with a presence in the western and eastern U.S., is providing an update on the company’s operations in response to ongoing COVID-19 developments. Unless otherwise noted, all results are presented in U.S. dollars.

“Despite regulators putting material restrictions on cannabis sales in both Massachusetts and Nevada in response to COVID-19, in the last 30 days, we have pivoted our businesses and continue to produce positive adjusted EBITDA for the month of April to date, adding to the already strong cash position on our balance sheet,” said Ayr CEO Jon Sandelman.

Nevada

“Our business in Nevada continued to generate positive adjusted EBITDA following the COVID-19 regulatory restrictions applied to cannabis businesses in the state,” continued Sandelman. “We have built what we believe to be the largest cannabis delivery network in Nevada, deploying more than 50 delivery vehicles, completing up to 1,200 daily deliveries with average tickets of up to $139 (versus $61 average ticket pre-COVID). We are seeing 40% average weekly revenue growth, achieving daily sales of up to $169k at gross margins 20 percentage points higher than pre-COVID levels. We project that by achieving $190k in daily sales, we would reach our pre-COVID adjusted EBITDA level for the state.”

Nevada Key Metrics

• Positive adjusted EBITDA for April to date and 2020 year to date
• Completing up to 1,200 delivery transactions per day with more than 50 delivery vehicles
• Average ticket as high as $139 since implementing delivery model, up from $61 pre-COVID
• Weekly average revenue growth over 40% since the start of home delivery
• Gross margins expanded 20 percentage points from pre-COVID levels
• Achieved daily revenues as high as $169k, and at $190k in daily revenue, expected to reach pre-COVID adjusted EBITDA levels

“Now that our delivery business is in great shape, we are actively preparing for the day when our stores reopen – potentially with curbside pickup and drive-through options, and we expect to continue providing delivery services given the attractive economics. We believe there may be a shift in purchasing behavior throughout the country as customers utilize these alternative methods to buy cannabis, and we will be prepared to serve our customers in the manner they wish to shop.”