Schedule of details of the purchase price consideration, and fair value of the identifiable assets acquired and liabilities assumed


		Shares	Fair Value
Cash	i		$	17,477,788
Debt Payable	ii			1,934,964
Shares Issued	iii	128,265		2,083,450

Total		128,265	$	21,496,202

4. BUSINESS COMBINATION AND ASSET ACQUISITIONS (Continued)

DocHouse Asset Acquisition (continued)

Pursuant to the terms of the Definitive Agreement (“DocHouse Agreement”), Ayr satisfied the purchase price of $21.5 million for DocHouse through the following:

i.

$17.5 million of the DocHouse purchase price in the form of cash consideration, of which $12.4 million was paid on closing, $3.0 million was paid within three months, and $2.1 million was paid within six months of closing;

ii.

$1.9 million of the DocHouse purchase price in the form of promissory notes payables; and

iii.

$2.1 million of the DocHouse purchase price in the form of 128,265 Subordinate Shares of the Company. These shares have restrictions on their ability to be sold for six to twelve months (the “DocHouse Lock-Up Provision”). The fair value of the shares was determined by the share price at the date of acquisition and a 12.5% discount rate attributed to the contractual restrictions.

Disclosure of detailed information about business combination [line items]

Schedule of details of the asset acquisition


		PA Natural
		$
ASSETS ACQUIRED
Cash		2,223,523
Inventory, net		2,669,998
Prepaid expenses and other assets		77,351
Intangible assets-licenses/permits		101,000,000
Property, plant, and equipment		847,747
Right-of-use assets - operating		785,780
Deposits		5,600
Total assets acquired at fair value		107,609,999

LIABILITIES ASSUMED
Trade payables		1,991,425
Accrued liabilities		317,868
Lease liabilities - operating		703,495
Total liabilities assumed at fair value		3,012,788

Goodwill		15,158,663

Consideration transferred		119,755,874

Disclosure of detailed information about business combination [line items]

Schedule of details of the purchase price consideration, and fair value of the identifiable assets acquired and liabilities assumed


		Shares	Fair Value
Cash	i		$	41,860,310
Debt Payable	ii			29,490,630
Shares Issued	iii	1,511,334		29,744,216
Contingent Consideration	iv			89,561,000

Total		1,511,334	$	190,656,156

Pursuant to the terms of the Definitive Agreement (“GSD Agreement”), Ayr satisfied the purchase price of $190.7 million for GSD through the following:

i.

$41.9 million of the GSD purchase price in the form of cash consideration and settlement of the final working capital, which is deemed immaterial;

4. BUSINESS COMBINATIONS AND ASSET ACQUISITIONS (Continued)

GSD Business Combination (continued)

ii.

$29.5 million of the GSD purchase price in the form of a promissory note payable;

iii.

$29.7 million of the GSD purchase price in the form of 1,511,334 Exchangeable Shares, these shares have contractual restrictions on their ability to be sold for four to twelve months (the “GSD Lock-Up Provision”). The fair value of the shares was determined by the share price at the date of acquisition and a 9.2% discount rate attributed to the contractual restrictions; and

iv.

A portion of the GSD purchase price is derived from an earn-out provision through December 31, 2022, subject to extension, based on exceeding revenue target thresholds, consisting of cash, a promissory note, and Exchangeable Shares, valued through a Monte-Carlo simulation, that may entitle the sellers to earn additional consideration if certain milestones are achieved, see Note 13 for more information.

Disclosure of detailed information about business combination [line items]

Schedule of details of the purchase price consideration, and fair value of the identifiable assets acquired and liabilities assumed


		Shares	Fair Value
Share Capital	i	12,670,958	$	399,499,188
Purchase Consideration Payable	ii	75,864		2,391,895
Replacement Options Issued	iii	248,412		4,452,917

Total		12,995,234	$	406,344,000

Pursuant to the terms of the Definitive Agreement (“Liberty Agreement”), Ayr satisfied the purchase price of $406.3 million for Liberty through the following:

i.

$399.5 million of the Liberty purchase price in the form of 12,670,958 Subordinate Shares of the Company in a stock-for-stock combination. Liberty shareholders received 0.03683 Ayr shares for each Liberty share held;

ii.

$2.4 million of the Liberty purchase price in the form of 75,864 Subordinate Shares were issued to dissenting Liberty shareholders who subsequently withdrew their dissent notices. On April 1, 2021, the dissenting Liberty shareholders received 0.03683 Ayr Subordinate Shares for each share held and the Company recognized a gain from fair value adjustment of $102,351, see Note 13; and

iii.

$4.5 million of the Liberty purchase price in the form of 248,412 replacement options issued that were fully vested.

Disclosure of detailed information about business combination [line items]

Schedule of details of the asset acquisition


	DocHouse	CannTech PA	Total
	$	$	$
ASSETS ACQUIRED
Cash	–	2,383,373	2,383,373
Inventory, net	–	254,342	254,342
Prepaid expenses, deposits, and other current assets	–	525,989	525,989
Intangible assets - licenses/permits	13,072,485	62,099,558	75,172,043
Property, plant, and equipment	11,063,908	10,596,301	21,660,209
Right-of-use assets - operating	–	11,131,990	11,131,990
Deposits and other assets	–	204,132	204,132
Total assets acquired at fair value	24,136,393	87,195,685	111,332,078

LIABILITIES ASSUMED
Trade payables	290,512	715,912	1,006,424
Accrued liabilities	46,330	262,130	308,460
Advance from related parties	2,303,349	5,737,455	8,040,804
Lease liabilities - operating	–	11,170,076	11,170,076
Debts payable	–	8,271,432	8,271,432
Total liabilities assumed at fair value	2,640,191	26,157,005	28,797,196

Goodwill	–	3,015,000	3,015,000

Consideration transferred	21,496,202	64,053,680	85,549,882

Disclosure of detailed information about business combination [line items]