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Ayr Wellness Inc., et al. – ‘T-3/A’ on 1/30/24

On:  Tuesday, 1/30/24, at 5:22pm ET   ·   Accession #:  1104659-24-8350   ·   File #s:  22-29110, -01, -02, -03, -04, -05, -06, -07, -08, -09, -10, -11, -12, -13, -14, -15, -16, -17, -18, -19, -20, -21, -22, -23, -24, -25, -26, -27, -28, -29, -30, -31, -33, -34, -35, -36, -37, -38, -39, -40, -41, -42, -43, -44, -45, -46, -47, -48, -49, -50, -51, -52, -53, -54, -55, -56

Previous ‘T-3’:  ‘T-3/A’ on 11/28/23   ·   Latest ‘T-3’:  This Filing   ·   3 References:   To:  Ayr Wellness Inc. – Previous ‘T-3/A’ on 11/28/23 To:  Ayr Wellness Inc. – ‘T-3/A’ on 11/22/23 To:  Ayr Wellness Inc. – ‘T-3’ on 11/22/23 

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 1/30/24  Ayr Wellness Inc.                 T-3/A                  3:717K                                   Toppan Merrill/FA
          Parker RE PA, LLC
          CSAC Acquisition NJ Corp.
          242 Cannabis, LLC
          CSAC Holdings Inc.
          DocHouse LLC
          LivFree Wellness LLC
          DWC Investments, LLC
          CSAC Acquisition IL Corp.
          CSAC Acquisition MA II Corp.
          CSAC Ohio, LLC
          CSAC Acquisition PA Corp.
          CSAC Acquisition PA II Corp.
          Mercer Strategies PA, LLC
          Parker Solutions PA, LLC
          Sira Naturals, Inc.
          Cannapunch of Nevada LLC
          CannTech PA, LLC
          Parker RE MA, LLC
          Parker Solutions MA, LLC
          DFMMJ Investments, LLC
          Lemon Aide LLC
          Land of Lincoln Dispensary LLC
          Kynd-Strainz LLC
          Mercer Strategies MA, LLC
          AYR Wellness NJ LLC
          PA Natural Medicine LLC
          Tahoe-Reno Botanicals, LLC
          Mercer Strategies FL, LLC
          Tahoe-Reno Extractions, LLC
          Tahoe Capital Co.
          Tahoe Hydroponics Co., LLC
          Klymb Project Management, Inc.
          Herbal Remedies Dispensaries, LLC
          Green Light Management, LLC
          Green Light Holdings, LLC
          Eskar LLC
          CSAC Acquisition TX Corp.
          CSAC Acquisition NV Corp.
          CSAC Acquisition FL Corp.
          CSAC Acquisition MA Corp.
          CSAC Acquistion IL II Corp.
          CSAC Acquisition Connecticut LLC
          BP Solutions LLC
          AYR Wellness Holdings, LLC
          AYR Ohio LLC
          Ayr NJ LLC
          Parker Solutions FL, LLC
          Parker Solutions IL, LLC
          Parker Solutions NJ LLC
          Parker Solutions OH, LLC
          CSAC Acquisition AZ Corp.
          CSAC Acquisition NY Corp.
          AYR Wellness Canada Holdings Inc.
          Cultivauna, LLC
          Csac Acquisition Inc.

Document/Exhibit                   Description                      Pages   Size 

 1: T-3/A       Pre-Effective Amendment to Application for a        HTML    395K 
                Qualification of a Trust Indenture                               
 2: EX-99.T3B-37  Miscellaneous Exhibit                             HTML     70K 
 3: EX-99.T3D-2  Miscellaneous Exhibit                              HTML    205K 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM T-3

(Amendment No. 3)

FOR APPLICATIONS FOR QUALIFICATION OF INDENTURES
UNDER THE TRUST INDENTURE ACT OF 1939

AYR Wellness Inc.

(Name of Applicants)*

2601 South Bayshore Drive, Suite 900
Miami, Florida 33133

(Address of Principal Executive Offices)

SECURITIES TO BE ISSUED UNDER THE
INDENTURE TO BE QUALIFIED

Approximate date of proposed public offering:
On the Effective Date under the Plan (as defined herein) or as soon as practicable thereafter.

The Applicants hereby amend this Application for Qualification on such date or dates as may be necessary to delay its effectiveness until (i) the 20th day after the filing of an amendment which specifically states that it shall supersede this Application for Qualification, or (ii) such date as the Securities and Exchange Commission, acting pursuant to Section 307(c) of the Trust Indenture Act of 1939 (the “Trust Indenture Act”), may determine upon the written request of the Applicants.

GENERAL

AYR Wellness Inc. (the “Parent Guarantor”) is a Canadian corporation in the cannabis industry with operations in certain States of the United States. The Parent Guarantor, through its subsidiaries and affiliates, holds, operates and manages licenses and permits in the States of Florida, Massachusetts, Nevada, New Jersey, Ohio, Pennsylvania, Illinois, and Connecticut. Ayr Wellness Canada Holdings Inc. (the “Issuer”) is a Canadian corporation wholly-owned by the Parent Guarantor.

The guarantors identified below (the “Guarantors” and, together with the Parent Guarantor and the Issuer, the “Applicants”) have the following forms of organization and jurisdictions of formation or incorporation. The Guarantors are wholly-owned subsidiaries of the Parent Guarantor.

In connection with certain transactions (collectively, the “Transactions”) to be implemented by way of an arrangement (the “Arrangement”) pursuant to a plan of arrangement (the “Plan”) under Section 192 of the Canada Business Corporations Act, all of the Parent Guarantor’s outstanding 12.5% Senior Secured Notes due December 10, 2024 of (the “Existing Notes”), in the aggregate principal amount of approximately $243.25 million, will be exchanged on the implementation date of the Plan (the “Effective Date”) for (a) the Issuer’s 13.00% Senior Secured Notes due 2026, in the aggregate principal amount of approximately $243.25 million (the “New 2026 Exchange Notes”) pursuant to that certain amended and restated indenture, the form of which is filed hereto as Exhibit T3C (the “A&R Indenture”), among the Parent Guarantor, the Issuer and Odyssey Trust Company, as trustee, and (b) a total of 29,040,140 Subordinate Voting, Limited Voting and Restricted Voting Shares of the Parent Guarantor, in each case, to holders of the Existing Notes (“Senior Noteholders”).

The New 2026 Exchange Notes will be issued by the Issuer and guaranteed by the Parent Guarantor and the Guarantors, all as further described in the Company’s Management Information Circular (the “Information Circular”), attached hereto as Exhibit  T3E-3. Capitalized terms used herein that are not otherwise defined herein shall have the meanings ascribed to such terms in the Information Circular. Unless otherwise stated, all monetary amounts contained herein are expressed in U.S. dollars.

Registration of the New 2026 Exchange Notes under the Securities Act of 1933, as amended (the “Securities Act”), is not required by reason of Section 3(a)(10) of the Securities Act (“Section 3(a)(10)”). Section 3(a)(10) exempts from the general requirement of registration under the Securities Act securities issued in exchange for one or more bona fide outstanding securities, claims or property interests, or partly in such exchange and partly for cash, where the terms and conditions of the issuance and exchange are approved by a court or other governmental authority that is expressly authorized by law to grant such approval, after a hearing upon the fairness of such terms and conditions of such issuance and exchange at which all persons to whom the securities will be issued in such exchange have the right to appear.

The three main elements of the Section 3(a)(10) exemption are (a) an exchange of outstanding securities, claims or property interests, (b) a fairness hearing and (c) court approval of the issuances of securities in exchange for securities, claims or property interests. As described below and in the Information Circular, each of these elements has been satisfied in connection with the issuance of the New 2026 Exchange Notes.

Pursuant to the Arrangement, the New 2026 Exchange Notes will be issued in exchange for the Existing Notes as more fully described in the Information Circular, filed hereto as Exhibit T3E-3.

On November 15, 2023, the Ontario Superior Court of Justice (Commercial List) (the “Court”) granted an Interim Order (the “Interim Order”), which, among other things, authorized: (a) the Parent Guarantor to send the Information Circular to, among others, the holders of the Existing Notes and (b) the calling and holding of the Special Meeting of Senior Noteholders in order for the Senior Noteholders to consider and vote upon the Arrangement to implement the Transactions. The Interim Order is attached hereto as Exhibit T3D-1. The Special Meeting of Senior Noteholders took place on December 15, 2023 at 10:00 a.m. (Toronto time). The hearing seeking the Court’s approval of the Arrangement, including that the terms and conditions of the Arrangement are fair to those to whom securities will be issued, was held by the Court on December 19, 2023 at 10:00 a.m. (Toronto time). The hearing was open to all persons holding the Existing Notes. Such persons had the right to appear at the hearing and to present evidence or testimony with respect to the fairness of the Arrangement. Measures were taken pursuant to the Interim Order to provide relevant information and adequate and timely notice of the right to appear to the holders of the Existing Notes, including circulation of the Information Circular, and there was no improper impediments to appearance by those persons at the hearing.

On December 22, 2023, the Court approved the Arrangement as fair and resonable and issued the final order (the “Final Order”). The Final Order is attached hereto as Exhibit T3D-2. The Court was advised that its ruling will be the basis for claiming an exemption from registration under the Securities Act by reason of the exemption afforded by Section 3(a)(10) thereof.

AFFILIATIONS

Certain directors and executive officers of the Applicants may also be deemed to be “affiliates” of the Applicants by virtue of their positions with the Applicants. See Item 4, “Directors and Executive Officers.” The Guarantors and Issuer are all “affiliates” of the Parent Guarantor by virtue of each being wholly owned by the Parent Guarantor. The following is a list of all other affiliates of the Parent Guarantor as of the date of this Application.

MANAGEMENT AND CONTROL

The following tables list the names and offices held by all directors and executive officers of each Applicant as of the date of this Application. The mailing address for each of the individuals listed in each of the tables for each of the entities set forth below is: 152928 Canada Inc., c/o Stikeman Elliott LLP, 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario M5L 1B9.

AYR Wellness Inc.

Ayr Wellness Canada Holdings Inc.

242 Cannabis LLC

AYR NJ LLC

AYR Wellness Holdings LLC

DFMMJ Investments, LLC d/b/a AYR Cannabis Dispensary

Eskar LLC

Tahoe Hydroponics Company, LLC

AYR Ohio LLC

AYR Wellness NJ LLC

BP Solutions LLC

Cannapunch of Nevada LLC

Cultivauna, LLC d/b/a Levia

DWC Investments, LLC

Green Light Holdings, LLC

Green Light Management, LLC

Herbal Remedies Dispensaries, LLC

Kynd-Strainz LLC

Lemon Aide LLC

LivFree Wellness LLC

PA Natural Medicine LLC

Tahoe-Reno Botanicals, LLC

Tahoe-Reno Extractions, LLC

CannTech PA, LLC

CSAC Acquisition AZ Corp.

CSAC Acquisition IL II Corp.

CSAC Acquisition MA Corp.

CSAC Acquisition NY Corp.

CSAC Acquisition TX Corp.

Klymb Project Management, Inc.

CSAC Acquisition Connecticut LLC

CSAC Acquisition FL Corp.

CSAC Acquisition IL Corp.

CSAC Acquisition MA II Corp.

CSAC Acquisition NV Corp.

Tahoe Capital Company

CSAC Acquisition NJ Corp.

CSAC Acquisition Inc.

CSAC Holdings Inc.

CSAC Acquisition PA Corp.

CSAC Acquisition PA II Corp.

CSAC Ohio, LLC 

Mercer Strategies FL, LLC

Mercer Strategies PA, LLC

Parker RE MA, LLC

Parker RE PA, LLC 

Parker Solutions IL, LLC

Parker Solutions NJ, LLC

Parker Solutions OH, LLC

Parker Solutions PA, LLC

DocHouse LLC

Land of Lincoln Dispensary LLC

Mercer Strategies MA, LLC

Parker Solutions FL, LLC

Parker Solutions MA, LLC

Sira Naturals, Inc.

The following tables list the persons owning 10% or more of the voting securities of the Applicants as of the date of this Application.

(1)  The address of Mercer Park CB, L.P. is 595 Madison Ave., 20th Floor, New York, New York 10022.

UNDERWRITERS

(a)     The following table sets forth information regarding all persons who have acted as an underwriter of any securities of the Parent Guarantor outstanding on the date of the filing of this Application within three years prior to the date of the filing of this Application. No persons have acted as an underwriter of any securities outstanding of the Issuer or Guarantors.

(b)     There is no proposed principal underwriter for the New 2026 Exchange Notes that are to be issued under the Indenture that is to be qualified under this Application.

CAPITAL SECURITIES

The following tables set forth certain information with respect to each authorized class of securities of the Applicants as of the date of this Application.

AYR Wellness Inc.

The only securities outstanding for the Issuer and each Guarantor are the equity interests detailed in section 5 above.

INDENTURE SECURITIES

The New 2026 Exchanges Notes will be subject to the A&R Indenture. The following is a general description of certain provisions expected to be included in the A&R Indenture, and the description is qualified in its entirety by reference to the form of A&R Indenture filed hereto as Exhibit T3C. The Parent Guarantor and Issuer have not entered into the A&R Indenture as of the date of this filing, and the terms of the A&R Indenture are subject to change before it is executed. Capitalized terms used below and not defined herein have the meanings ascribed to them in the A&R Indenture.

Events of Default

Unless otherwise provided in a Supplemental Indenture relating to a particular series of Notes, an “Event of Default” means any one of the following events:

(A) (i) is caused by a failure to make any payment on such Indebtedness when due and after giving to the expiration of the grace period, if any, provided in such Indebtedness (a “Payment Default”); or (ii) results in the acceleration of such Indebtedness prior to its Stated Maturity, and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default, aggregates $5.0 million or more, or

(B)  is caused by a breach or default of any other covenant other than a Payment Default (“Non- Payment Default”), after giving effect to the expiration of the grace period, if any, provided that the principal amount of any such Indebtedness individually, or when taken together with the principal amount of any other such Indebtedness under which there has been a Non-Payment Default, aggregates to $10.0 million or more;

provided that, in each case (a) if any such Payment Default or Non-Payment Default is cured or waived or any such acceleration is rescinded, as the case may be, such Event of Default under the A&R Indenture and any consequential acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgement or decree and (b) any Non- Payment Default arising from any valid assertion made by a Person who is not an Affiliate of the Issuer that the granting of Liens to the Trustee in collateral securing the those certain Vendor Takeback Notes specified on Schedule B-2 of the A&R Indenture (“Specified Seller Notes”) breaches a prohibition (if any) on granting such Liens contained in the definitive documentation governing such Specified Seller Notes shall not constitute an Event of Default;

and the order or decree remains unstayed and in effect for 60 consecutive days and, in the case of the insolvency of a Restricted Subsidiary, such Restricted Subsidiary remains a Restricted Subsidiary on such 60^th day;

unless such Material Permit(s) are replaced within 60 days by substantially similar Material Permit(s) on terms and conditions no more onerous or restrictive than the Material Permit(s) forfeited or terminated under subsections (i) or (ii) or such Material Permit(s) are to be renewed or replaced by the applicable regulatory authority in accordance with applicable law.

For greater certainty, for the purposes of Section 7.1 of the A&R Indenture, an Event of Default shall occur with respect to a series of Notes if such Event of Default relates to a Default in the payment of principal, premium (if any), or interest on such series of Notes, in which case references to “Notes” in Section 7.1 of the A&R Indenture shall refer to Notes of that particular series.

For the purposes of Article 7 of the A&R Indenture, where the Event of Default refers to an Event of Default with respect to a particular series of Notes as described in Section 7.1 of the A&R Indenture, then Article 7 of the A&R Indenture shall apply mutatis mutandis to the Notes of such series and references in Article 7 of the A&R Indenture to the “Notes” shall be deemed to be references to Notes of such particular series, as applicable.

Acceleration of Maturity; Rescission, Annulment and Waiver

If an Event of Default specified in Section 7.1(i) of the A&R Indenture or 7.1(j) of the A&R Indenture occurs and is continuing, then the principal of (and premium, if any) and accrued and unpaid interest on all of the outstanding Notes will thereupon become and be immediately due and payable without any declaration, notice or other action on the part of the Trustee or any Holder. However, the effect of such provision may be limited by applicable laws.

(A) all existing Events of Default, other than the non-payment of amounts of principal of (and premium, if any) or interest on the Notes that have become due solely by such declaration of acceleration, have been cured or waived; and

(B) such rescission would not conflict with any judgment or decree of a court of competent jurisdiction,

provided that if the Event of Default has occurred by reason of the nonobservance or non- performance by the Issuer of any covenant applicable only to one or more series of Notes, then the Holders of a majority of the principal amount of the outstanding Notes of that series shall be entitled to exercise the foregoing power of rescission and the Trustee shall so act and it shall not be necessary to obtain a waiver from the Holders of any other series of Notes; and (ii) the Trustee, so long as it has not become bound to declare the principal and interest on the Notes (or any of them) to be due and payable, or to obtain or enforce payment of the same, shall have the power to waive any Event of Default if, in the Trustee’s opinion, the same shall have been cured or adequate satisfaction made therefor, and in such event to rescind and annul such declaration and its consequences,

provided that no such rescission shall affect any subsequent Default or impair any right consequent thereon.

Notice of Event of Default

If an Event of Default shall occur and be continuing the Trustee shall, within 30 days after it receives written notice of the occurrence of such Event of Default, give notice of such Event of Default to the Holders in the manner provided in Section 14.2 of the A&R Indenture, provided that, notwithstanding the foregoing, unless the Trustee shall have been requested to do so by the Holders of at least 51% of the principal amount of the Notes then outstanding, the Trustee shall not be required to give such notice if and the Trustee in good faith shall have determined that the withholding of such notice is in the best interests of the Holders and shall have so advised the Issuer in writing. Notwithstanding the foregoing, notice relating to a Default or Event of Default relating to the payment of principal or interest shall not in any circumstances be withheld.

Statement by Officers 

Execution, Authentication and Delivery of Notes

Release of Guarantees

Release of Security

provided that in each case, all amounts owing to the Trustee under the A&R Indenture and the Notes and to the Collateral Trustee under the Security Documents have been paid or otherwise provided for to the reasonable satisfaction of the Trustee and the Collateral Trustee, as applicable.

To the extent required by the A&R Indenture (other than in relation to (ii) above), the Issuer will furnish to the Trustee, prior to each proposed release of Collateral under the A&R Indenture, an Officer’s Certificate and/or an opinion of counsel, each stating that all conditions to the release of the Liens on the Collateral have been satisfied.

Satisfaction and Discharge

The A&R Indenture will be discharged and will cease to be of further effect as to all Notes issued thereunder (except as to any surviving rights of registration of transfer or exchange of Notes expressly provided for therein), when

Notwithstanding the satisfaction and discharge of the A&R Indenture, if money has been deposited with the Trustee pursuant to Section 8.1(a)(ii) of the A&R Indenture, the provisions of Sections 8.7 and 8.8 A&R Indenture will survive.

Evidence and Authority to Trustee, Opinions, etc.

No person, other than the Applicants, will be an obligor of the New Notes.

CONTENTS OF APPLICATION FOR QUALIFICATION

The application for qualification comprises:

(a)            Pages numbered 1 to 24, consecutively.

(b)            The statement of eligibility and qualification of the trustee under the indenture to be qualified.

(c)            The following Exhibits in addition to those filed as part of the statement of eligibility and qualification of the trustee:

SIGNATURES

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant below, a corporation organized and existing under the laws of Canada, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Miami, State of Florida, on January 30, 2024.

AYR Wellness Inc.

Pursuant to the requirements of the Trust Indenture Act of 1939, the applicant below, a corporation organized and existing under the laws of Canada, has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Miami, State of Florida, on January 30, 2024.

Ayr Wellness Canada Holdings Inc.

Pursuant to the requirements of the Trust Indenture Act of 1939, the undersigned Guarantors have duly caused this application to be signed on their behalf by the undersigned, thereunto duly authorized:

242 Cannabis LLC
AYR NJ LLC
AYR Wellness Holdings LLC
DFMMJ Investments, LLC d/b/a AYR Cannabis Dispensary
Eskar LLC
Tahoe Hydroponics Company, LLC
AYR Ohio LLC
AYR Wellness NJ LLC
BP Solutions LLC
Cannapunch of Nevada LLC
Cultivauna, LLC d/b/a Levia
DWC Investments, LLC
Green Light Holdings, LLC
Green Light Management, LLC
Herbal Remedies Dispensaries, LLC
Kynd-Strainz LLC
Lemon Aide LLC
LivFree Wellness LLC
PA Natural Medicine LLC
Tahoe-Reno Botanicals, LLC
Tahoe-Reno Extractions, LLC

CannTech PA, LLC

CSAC Acquisition AZ Corp.
CSAC Acquisition IL II Corp.
CSAC Acquisition MA Corp.
CSAC Acquisition NY Corp.
CSAC Acquisition TX Corp.
Klymb Project Management, Inc.
CSAC Acquisition FL Corp.
CSAC Acquisition IL Corp.
CSAC Acquisition MA II Corp.
CSAC Acquisition NV Corp.
Tahoe Capital Company
CSAC Acquisition NJ Corp.
CSAC Acquisition Inc.
CSAC Holdings Inc.
CSAC Ohio, LLC
Mercer Strategies FL, LLC
Mercer Strategies PA, LLC
Parker RE MA, LLC
Parker RE PA, LLC
Parker Solutions IL, LLC
Parker Solutions NJ, LLC
Parker Solutions OH, LLC
Parker Solutions PA, LLC

CSAC Acquisition Connecticut LLC

CSAC Acquisition PA Corp.
CSAC Acquisition PA II Corp.

DocHouse LLC

Land of Lincoln Dispensary LLC

Mercer Strategies MA, LLC
Parker Solutions FL, LLC

Parker Solutions MA, LLC

Sira Naturals, Inc.

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘T-3/A’ Filing		Date		Other Filings
		12/10/26
		12/10/24
Filed on:		1/30/24
		12/22/23		6-K
		12/19/23
		12/15/23
		11/15/23
				List all Filings

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3 Previous Filings that this Filing References

As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/28/23 Ayr Wellness Inc. T-3/A 2:142M Toppan Merrill/FA 11/22/23 Ayr Wellness Inc. T-3/A 64:18M Toppan Merrill/FA 11/22/23 Ayr Wellness Inc. T-3 64:114M Toppan Merrill/FA

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Filing Submission 0001104659-24-008350   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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