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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 1.02 to 150.37, while the CSE Composite Index lost 4.85 to 558.19. U.S. MSO (multistate operator) AYR Strategies Inc. (AYR.A) added 33 cents to $24.33 on 273,800 shares, after trumpeting record results for the third quarter. It pegged its revenue at $45.5-million (U.S.), up nicely from $28.3-million (U.S.) in the second quarter. Adjusted EBITDA more than doubled quarter over quarter to $19.3-million (U.S.) from $9.1-million (U.S.). (True profits slip in and out of AYR's grasp. In the third quarter of 2020 compared with the third quarter of 2019, AYR swung to a net loss of $26.8-million (U.S.) from net earnings of $26.2-million (U.S.), with the variation almost entirely due to the accounting treatment of warrants.)
The financials were (naturally) well received by analysts. Canaccord Genuity analyst Bobby Burleson called AYR's numbers "indisputably compelling," attributing the improvements to retail and wholesale gains in Nevada and Massachusetts. He sees further gains coming in both states. On top of that, AYR is working on no fewer than five acquisitions (one of which closed shortly after the financials were released) in Pennsylvania, Arizona and Ohio. By the time the dust settles early next year, AYR will be operating in five states instead of two -- a truly "transformational" achievement, cheered Mr. Burleson. He cited these "M&A catalysts" as his reason for hiking his price target on AYR to $33 from $25. The stock closed today at $24.33.
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