Vertically-integrated cannabis company Ayr Wellness Inc. AYR AYRWF confirmed Monday it's acquiring GSD NJ, LLC, which is doing business as Garden State Dispensary.

The Canadian company agreed to buy 100% of the New Jersey-based licensed operator's equity interests for $101 million.

The price tag includes $41 million in cash, $30 million in stock, and $30 million in the form of promissory notes.

In addition, earnout payments are subject to particular target revenue thresholds upon closing of the transaction and are capped at $96.75 million.

Through the acquisition, Ayr will not only get three operational dispensaries but also 30,000 square feet of cultivation and production space. An additional 75,000 square feet are currently under construction.

The acquisition is expected to close in the third quarter of 2021.

GSD, An OG

GSD is one of the six original alternative treatment centers in the Garden State. The company currently employs 110 people.

Chairman and CEO Jonathan Sandelman said he is thrilled to serve medical cannabis patients in New Jersey and work on ensuring a "safe and robust roll-out of the adult-use program.

"We see an incredible opportunity to drive growth at retail with the introduction of our quality cannabis brands, expanded product offerings, and exceptional in-store experience," he added.

New Jersey legalized the use of recreational cannabis on November 4 through a ballot measure.

67% of the respondents voted in favor of legalizing cannabis. However, lawmakers are still struggling to put the bill in force.

Last week, the state's Cannabis Regulatory Commission appointed its first Black male member, Charles Barker.