Herbal Remedies sells for $30 million to New York company

The local company that first brought medical marijuana, then recreational marijuana, to Quincy has been sold to a company that owners say can compete better in a tough market.

Bob Lansing and Christine Wildrick sold Herbal Remedies to Ayr Wellness, based out of New York City, for $30 million.

Lansing said as he approaches age 72, it was time to sell. He said when the City of Quincy allowed Rise, another recreational-use company, into the market, it made it almost impossible for his business to compete.

“When they allowed a company to come in that is vertically-integrated, it cut us in half,” Lansing said.

Vertical-integration means a company that grows and sells its own marijuana without buying product outside of its own supply chain. Ayr Wellness is vertically-integrated. Lansing said that allows huge tax advantages and it will make for an even playing field in the market.

Illinois will be the eighth state Ayr Wellness will operate in. It has existing operations in Massachusetts, Nevada, Pennsylvania, Ohio, Florida, New Jersey and Arizona. The company cultivates and manufactures branded cannabis products for distribution through its network of retail outlets and third-party stores.

The total cannabis market in Illinois is at $1.8 billion in annual sales despite adult-use launching only 18 months ago, according to www.newcannibisventures.com.

“The team at Herbal Remedies has done a tremendous job in Quincy, building a fantastic business and a strong reputation for excellent customer service and merchandising – exactly what we at Ayr Wellness look for in a partner when entering a new market,” said Jonathan Sandelman, chairman and chief executive officer of Ayr Wellness, in a prepared statement. “We look forward to working with the Herbal team as we continue to build our presence in the Illinois market.”

Herbal Remedies was among the first cannabis dispensaries licensed in Illinois when medical marijuana was approved in 2013. It opened in Quincy in 2015. Recreational use became legal in 2020.

Upon federal regulatory approval, Ayr Wellness will purchase 100 percent of Herbal Remedies. The $30 million sale is broken into $10 million in stock, $12 million in seller notes and $8 million in cash.

Lansing said operations of Herbal Remedies will remain unchanged until the sale closes. He said that should happen around the end of 2021.

PUBLISHER’S NOTE: New Cannabis Ventures provided some information for this report. JRG