Ayr Wellness CFO Exits as 'New AYR' Rises from Debt Restructuring

MIAMI, FL – December 30, 2025 – AYR Wellness Inc. announced today the departure of its interim Chief Financial Officer, Donna Granato, effective December 31, 2025. The move comes as the multi-state cannabis operator finalizes a profound corporate transformation, described by the company as an “orderly wind down of AYR’s existing corporate entity and transition the Company’s go-forward assets to the new AYR.”

Granato, who joined the company in March 2025, played a critical role in navigating one of the most turbulent periods in Ayr's history. Her tenure coincided with a comprehensive debt restructuring and ownership transition designed to salvage the company from significant financial distress.

“As we continue the orderly wind down of AYR’s existing corporate entity and transition the Company’s go-forward assets to the new AYR, we thank Donna for her contributions to the Company,” said AYR Interim CEO Blake Holzgrafe in a statement.

Former interim CEO Scott Davido, who steered the initial restructuring efforts, highlighted the gravity of the situation Granato faced upon her arrival. “Donna stepped in during a period of significant complexity and uncertainty for the Company,” Davido stated. “Her leadership, judgment, and commitment were instrumental in helping guide the business through the initial, critical phases of our debt restructuring and ownership transition. We are thankful for her steady hands and partnership throughout this restructuring process.”

Granato’s exit is not a routine executive shuffle but rather a symbolic capstone on a difficult chapter, clearing the deck for a leaner, recapitalized company to emerge under new leadership and a new strategic vision.

The Making of a 'New AYR'

The transition to a “new AYR” is the culmination of a complex financial maneuver that began in earnest on July 30, 2025, when the company entered into a Restructuring Support Agreement (RSA) with its senior noteholders. Facing mounting debt and dwindling cash reserves—which stood at just $35.5 million at the end of 2024—Ayr pursued an aggressive plan to right its financial ship.

Instead of traditional bankruptcy, which is unavailable to plant-touching cannabis companies due to federal prohibition, Ayr utilized an Article 9 Uniform Commercial Code (UCC) sale process. This involved a foreclosure sale where the company’s senior noteholders, led by Boston-based investment adviser Millstreet Capital Management, used their $387 million in credit to purchase Ayr's most valuable assets. The deal effectively transferred ownership to its primary creditors while slashing the company's total debt by more than 50%.

To ensure operational continuity during this precarious period, the noteholders provided a $50 million bridge loan with a 14% interest rate. This crucial liquidity allowed Ayr to maintain its operations in key markets while the asset transfer was finalized. The public auction for the company's core assets was completed in November, paving the way for the formation of the new, privately-held entity.

Assets outside of the core strategic markets, meanwhile, were slated for liquidation through Companies' Creditors Arrangement Act (CCAA) proceedings in Canada, further streamlining the future business.

A Leaner, More Focused Operation

The restructuring was not just a financial reset; it was a strategic overhaul. The “new AYR” is designed to be a more agile and efficient operator, shedding underperforming or non-essential assets to concentrate its resources on its most promising markets. The company has been actively divesting properties throughout 2025 to achieve this goal.

Significant divestitures included cultivation and manufacturing facilities in Massachusetts and Nevada, a cultivation site in New Jersey, and multiple retail stores across Pennsylvania and Connecticut. The pending sale of its four Illinois retail stores will mark another step in this strategic contraction.

Going forward, the new entity will prioritize its vertically integrated operations in core markets such as Florida, Ohio, New Jersey, and Pennsylvania, alongside its retail footprint in Nevada. These states represent some of the largest and fastest-growing cannabis markets in the country, offering a more stable foundation for growth. This focused approach is intended to improve margins and allow the company to compete more effectively against other major multi-state operators (MSOs).

Navigating a Turbulent Cannabis Landscape

Ayr's ordeal is a stark reflection of the broader challenges confronting the U.S. cannabis industry. Many MSOs that expanded rapidly during the initial “green rush” now find themselves burdened with substantial debt, complex corporate structures, and operations spread across disparate regulatory environments. With cannabis still federally illegal, companies are subject to the crippling IRS Code Section 280E, which prohibits them from deducting standard business expenses and severely impacts profitability.

This hostile federal landscape has created a wave of restructurings across the sector. Major players like Curaleaf and Verano are also facing hundreds of millions in debt coming due in 2026, leading industry analysts to predict more financial re-engineering in the near future. Ayr’s Article 9 sale provides a playbook for other distressed MSOs seeking to restructure outside of federal bankruptcy court.

The industry is also contending with intense price compression in mature markets and the disruptive, unregulated rise of intoxicating hemp-derived products. These pressures have forced companies to abandon growth-at-all-costs strategies in favor of operational efficiency and a laser focus on positive cash flow.

As 2026 approaches, the entire industry is watching for potential regulatory relief. The most significant development on the horizon is the possible rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act. Such a move would eliminate the 280E tax burden overnight, injecting an estimated $3.1 billion in improved cash flow into the industry in its first year. While not a panacea for all of the industry’s challenges, it would provide a massive and immediate financial tailwind. For the newly recapitalized Ayr Wellness, the timing could be perfect. The leaner company, now under new ownership, is positioned to navigate a market that, while still fraught with challenges, holds the promise of significant regulatory tailwinds in the coming year.