Document:

Exhibit
4.12

 

FORM
51-102F3

MATERIAL
CHANGE REPORT

 

Item
1      Name and Address of Company

 

Ayr
Strategies Inc. (“Ayr” or the “Company”)

590
Madison Avenue, 26th Floor

New
York, New York 10022

 

Item
2      Date of Material Change

 

December
10, 2020

 

Item
3      News Release

 

Press
releases describing the material change were disseminated by Ayr on December 9, 2020 and December 10, 2020 through GlobeNewswire
and can be found on SEDAR at www.sedar.com.

 

Item
4      Summary of Material Change

 

Ayr
announced the closing of an offering of US$110 million aggregate principal amount of 12.5% senior secured notes due 2024 (the
 “Notes”).

 

Ayr
also announced the completion of its incentive cash exercise of three million of the Company’s share purchase warrants (the
 “Warrants”), resulting in gross proceeds to the Company of over US$25 million.

 

Item
5      Full Description of Material Change

 

5.1
        Full Description of Material Change

 

Note
Offering

 

Ayr
announced on December 3, 2020, that it received commitments from a syndicate of lenders for the purchase of US$75 million aggregate
principal amount of Notes with a further US$25 million overallotment option.

 

On
December 9, 2020, Ayr announced that it increased the size of its previously announced offering to US $110 million aggregate principal
amount of Notes. The offering of the Notes closed on December 10, 2020. The Notes were sold at an issue price of US$985 per US$1,000
aggregate principal amount. The Notes bear interest of 12.5% per annum, payable semi-annually, in equal instalments, with a maturity
date 48 months from the issue date.

 

Warrant
Exercise

 

Ayr
previously announced on November 23, 2020 that it had offered Warrant holders a temporary C$0.50 incentive for the cash exercise
of up to three million Warrants. Over six million of the approximately 14 million outstanding Warrants were exercised under the
incentive plan, resulting in gross proceeds to the Company of over US$25 million. The Warrants exercised were issued pursuant
to a warrant agency agreement dated December 21, 2017, between the Company and Odyssey Trust Company, as warrant agent (the “Warrant
Agent”), as amended. Warrants exercised under the inducement were pro-rated and unexercised warrants and surplus cash
are expected to be returned to the exercising holders by the Warrant Agent within five business days.

 

     

    - 2
                                                                                -

    

 

5.2
        Disclosure for Restructuring Transactions

 

Not
applicable.

 

Item
6      Reliance on subsection 7.1(2) of National Instrument 51-102

 

Not
applicable.

 

Item
7      Omitted Information

 

Not
applicable.

 

Item
8      Executive Officer

 

Further
information regarding the matters described in this report may be obtained from:

 

Megan
Kulick

Head
of Investor Relations

Ayr
Strategies Inc.

590
Madison Avenue, 26th Floor

New
York, New York 10022

(646)
977-7914 or ir@ayrstrategies.com

 

Item
9      Date of Report

 

December
11, 2020Exhibit
4.13

 

FORM
51-102F3

MATERIAL CHANGE REPORT

 

	Item
    1	Name
    and Address of the Corporation
	 	 
	 	Ayr
        Strategies Inc. (the “Corporation” or “Ayr”)

        199 Bay Street, Suite 5300

        

        Commerce
        Court West

        

        Toronto,
        Ontario

        

        M5L
1B9

	 	 
	Item 2	Date of Material
    Change
	 	 
	 	December 21, 2020
	 	 
	Item 3	News Release
	 	 
	 	A
    news release with respect to the material change referred to in this material change report was disseminated by the Corporation
    through GlobalNewswire on December 22, 2020, and was subsequently filed on the System for Electronic Document Analysis and
    Retrieval (“SEDAR“) (www.sedar.com) under Ayr’s issuer profile.
	 	 
	Item 4	Summary of Material
    Change
	 	 
	 	On
        December 22, 2020, the Corporation announced that it had entered into:

         

        (i)          a definitive arrangement agreement dated December 21, 2020 (the “Arrangement
        Agreement”), pursuant to which the Corporation agreed to acquire all of the issued and outstanding common shares
        (the “Liberty Shares”) of Liberty Health Sciences Inc. (“Liberty”) in exchange for,
        subject to a collar, share consideration equal to 0.03683 of a share of the Corporation pursuant to the terms of the Arrangement
        Agreement, for each Liberty Share (the “Liberty Share Consideration”), for a total transaction value
        of approximately USD $290 million (the “Arrangement”), subject to the satisfaction or waiver (as applicable)
        of the conditions contained in the Arrangement Agreement, to be completed by way of a statutory plan of arrangement under
        the Business Corporations Act (British Columbia); and

         

        (ii)          a
letter of intent dated December 21, 2020 (the “Letter of Intent”), pursuant to which the Corporation agreed to
work together with GSD NJ LLC (“GSD”) and its equity owners (the “GSD Investors”) in good faith
to negotiate and enter into a membership purchase agreement (the “Purchase Agreement”) whereby an affiliate of
the Corporation (“Buyer”) will acquire all of the issued and outstanding membership interests of GSD (the “GSD
Interests”) in exchange for cash consideration of USD $41,000,000 (the “GSD Cash Consideration”), a
promissory note in the amount of USD $30,000,000 (the “GSD Seller Note”), and share consideration of USD $30,000,000
in the form of non-voting common exchangeable shares in Buyer (the “GSD Exchangeable Shares”, and together with
the GSD Cash Consideration and the GSD Seller Note, the “Closing Date Consideration”), for a total closing date
transaction value of approximately USD $101,000,000 (the “Transaction”), subject to the satisfaction or waiver
(as applicable) of the conditions to be contained in the Purchase Agreement. The Letter of Intent contemplates a bridge loan from
the Corporation, or its affiliate, to GSD in the amount of USD $15,000,000, bearing interest of 9% per annum on the amount outstanding
thereunder, which shall be used for capital expenditures upon closing of the Transaction (the “Bridge Loan”).
Ayr has also agreed to pay GSD Investors a deposit of USD $1,250,000 (the “Deposit”) within two days of signing
the Letter of Intent, which shall be refundable under certain circumstances. The Letter of Intent represents a binding obligation
of the parties to work together in good faith to negotiate and enter into the Purchase Agreement and the other definitive agreements
contemplated therein. In addition, certain terms contained therein, including exclusivity, the Bridge Loan and Deposit provisions,
are legally binding on the parties in accordance with their terms.

 

     

    - 2 - 

    

 

	Item 5	Full Description
    of Material Change
	 	 
	 	Arrangement
        Agreement

         

        On
        December 22, 2020, the Corporation announced that it had entered into the Arrangement Agreement. Under the terms of the
        Arrangement Agreement, shareholders of Liberty (“Liberty Shareholders”) will be entitled to receive the
        Liberty Share Consideration in exchange for each Liberty Share held immediately prior to the effective time of the Arrangement.
        Liberty will have the right to nominate one new member to Ayr’s board of directors at the closing of the Arrangement,
        increasing the total number of members to seven.

         

        Each
        holder of Liberty options outstanding immediately prior to the effective time of the Arrangement will be entitled to receive,
        for each such option, a replacement option to acquire shares of the Corporation pursuant to the terms of the Arrangement
        Agreement.

         

        Liberty’s
        warrants, of which there were 9,407,661 outstanding as of December 21, 2020, will expire in accordance with their terms,
        if not exercised by their holders prior to February 15, 2021. In addition, Liberty’s $4,325,000 principal amount
        convertible debentures due November 22, 2021 will survive the closing of the Arrangement. Following the closing, each
        such convertible debenture shall represent the right of the holder to (i) acquire shares of the Corporation in lieu of
        shares of Liberty, or (ii) require the Corporation to purchase the convertible debentures at 101% of the principal amount
        thereof plus unpaid interest.

         

        The
        Arrangement Agreement includes representations, warranties and covenants typical of a transaction of this nature, along
        with customary non-solicitation and right to match provisions. In addition, Liberty has agreed to pay a termination fee
        of CDN $13 million in favour of Ayr, if the Arrangement Agreement is terminated in certain circumstances, including if
        Liberty enters into an agreement with respect to a superior proposal or if the board of directors of Liberty withdraws
        its recommendation with respect to the Arrangement in certain circumstances.

         

        In
order to become effective, the Arrangement must be approved by at least two-thirds of the votes cast by Liberty securityholders
at a special meeting of Liberty, which is expected to occur in February, 2021 (the “Liberty Meeting”), in person
or by proxy, on a resolution approving the Arrangement.

 

     

    - 3 - 

    

 

	 	Certain
        Liberty Shareholders, who collectively own or control, directly or indirectly, approximately 29.3% of the Liberty Shares,
        have entered into voting and support agreements with Ayr to, among other things, vote their Liberty Shares in favour of
        the Arrangement, subject to the provisions thereof.

         

        The
        Arrangement is subject to, among other things, (i) the approval of the Supreme Court of British Columbia by way of interim
        and final orders, (ii) expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust
        Improvements Act of 1976 (United States), (iii) certain required regulatory approvals from the Florida Department
        of Health, and (iv) the satisfaction or waiver of certain closing conditions customary in transactions of this nature.
        Subject to the satisfaction of such conditions, the Arrangement is expected to close in the first quarter of 2021.

         

        The
        Arrangement Agreement is available on SEDAR (www.sedar.com) under Ayr’s issuer profile.

         

        Letter
        of Intent

         

        On
        December 22, 2020, the Corporation announced that it had entered into a Letter of Intent pursuant to which the Corporation
        agreed to work to together with GSD and the GSD Investors in good faith to negotiate and enter into a Purchase Agreement.
        Under the terms of the Letter of Intent, the GSD Investors will be entitled to receive the Closing Date Consideration
        upon closing of the Transaction.

         

        The
        Letter of Intent contemplates the Bridge Loan, which shall be used for capital expenditures upon closing of the Transaction
        and the Deposit, which shall be refundable under certain circumstances.

         

        The
        Letter of Intent represents a binding obligation of the parties to work together in good faith to negotiate and enter
        into the Purchase Agreement and the other definitive agreements contemplated therein. In addition, certain terms contained
        therein, including exclusivity, the Bridge Loan and Deposit provisions, are legally binding on the parties in accordance
        with their terms.

         

        Subject
        to the signing of the Purchase Agreement and the satisfaction of the conditions contained therein, the Transaction is
        expected to close no earlier than July 1, 2021.

         

	Item 6	Reliance on subsection
    7.1(2) of National Instrument 51-102
	 	 
	 	Not applicable.
	 	 
	Item 7	Omitted Information
	 	 
	 	Not applicable.
	 	 
	Item 8	Executive Officer

 

     

    - 4 - 

    

 

	 	The
        following senior officer of the Corporation is knowledgeable about the material change and this Material Change Report,
        and may be contacted as follows:

         

        Megan
        Kulick

        

        Head
        of Investor Relations

        

        Ayr
        Strategies Inc.

        

        590
        Madison Avenue, 26th Floor

        

        New
        York, New York 10022

        

        (646)
        977-7914 or ir@ayrstrategies.com

         

	Item 9	Date of Report
	 	 
	 	December 30, 2020

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