Shenandoah Valley’s first medical marijuana dispensary set to bloom – Virginia Business

State awarded Ayr Virginia the region’s pharmaceutical processor permit
Beth JoJack //August 18, 2026//
Ayr Wellness dispensary in Frederick County. Photo courtesy Ayr Wellness
Shenandoah Valley’s first medical marijuana dispensary set to bloom
Ayr Wellness dispensary in Frederick County. Photo courtesy Ayr Wellness
State awarded Ayr Virginia the region’s pharmaceutical processor permit
Beth JoJack //August 18, 2026//

SUMMARY:

The Shenandoah Valley’s first medical marijuana dispensary will open Wednesday, after Ayr Virginia received a medical marijuana pharmaceutical processor permit from the state government this month, years after permits were awarded in other regions of the state.
The Virginia Cannabis Control Authority, the state’s public subdivision charged with regulating medical cannabis, adult-use marijuana and hemp products, confirmed Monday that Ayr Virginia on Aug. 6 received the permit for Virginia’s Health Service Area 1 (HSA 1), which is composed of 32 counties and cities, including Charlottesville, Fredericksburg and Harrisonburg.
Located at 260 Shady Elm Road in Frederick County, Ayr’s cultivation facility will also be the site of a dispensary, which will open Wednesday at 9 a.m., according to Ayr Wellness Chief Revenue Officer Julie Winter.
In most parts of the state, medical marijuana is thriving. Virginia has seen about $107.1 million in sales this year, according to the CCA’s dashboard. However, Wednesday will be the first time medical marijuana patients in HSA 1 will be able to buy product without traveling to other parts of the state.
“We know it’s been an underserved area,” Winter said. “So we are excited.”
In 2025, AYR Wellness, which was headquartered in Miami and registered in Canada, began restructuring proceedings in Canada due to overwhelming debt. As part of that process, in November 2025, AYR Wellness’ senior noteholders established Florida-based Arboretum Bidco to be the parent holding entity to acquire the company’s state-level operations. This entity, which does business as Ayr Wellness, received a $275 million loan, backed by Boston-based investment adviser Millstreet Capital Management.
On April 10, Ayr Wellness announced the initial closing of the transfer of its Virginia operations into an entity called Arboretum VA.
The Frederick County dispensary will sell brands such as Old Pal, Edie Parker and Triple Seven. “What patients will see at our Winchester store are brands that they would find on the other current operator menus today,” Winter said.
Ayr Wellness should begin selling one of its own brands, Later Days, in October. Another brand, Kynd, is expected to launch marijuana edibles this November and marijuana flower in January 2027, according to Winter.
“Plants are in the ground now, and it will take a few months for everything to kind of to work its way through the cycle,” said Robert Vanisko, a spokesperson for the company.
The leased Frederick facility is about 10,000 square feet and will have a sales floor that’s about 1,000 square feet, according to Winter.
“It already had zoning for manufacturing and distribution,” Winter said. “We wanted something that was convenient, and so this has obviously convenient access to I-81, Route 37, Route 11, kind of just near that Winchester city center.”
Ayr Wellness can operate six dispensaries in HSA 1, according to Winter. The company plans to open another in Staunton in September.
After that, Ayr Wellness hopes to open dispensaries in Fredericksburg, Harrisonburg, Charlottesville and Front Royal, according to Winter.
“We try to really spread throughout the HSA to make sure we’re providing access throughout the region,” Winter said.
HSA 1: Left out in the cold
The first company awarded the permit for HSA 1 lost it in 2020 after failing to meet construction deadlines. Following a lengthy court battle, the CCA announced in 2024 it would accept applications from entities that wanted to be considered for approval to grow and sell medical marijuana in HSA 1. Forty applicants, each of which paid $18,000 in fees, threw their hats in the ring.
A CCA review committee scored the applicants and had a 33-way tie for the highest score. The CCA held a lottery to determine the winning entity in September 2024, using a number randomization website. The authority then awarded its conditional approval to Ayr Virginia.
Dozens of unsuccessful applicants sued the CCA over its selection process, but a Richmond judge dismissed the case in 2025.
Arboretum VA became the permit holder in HSA 4 — covering most of Central Virginia and parts of Southern Virginia and Hampton Roads — on Feb. 5. On that day, Parma Holdco, an entity affiliated with Boston-based investment adviser Millstreet Capital Management, completed the $130 million purchase of The Cannabist Co.’s Green Leaf Medical of Virginia, its Central Virginia medical marijuana business.
A spokesperson for Arboretum Bidco confirmed to MJBizDaily in May that both HSA 1 and HSA 4 pharmaceutical permits are now operated by Arboretum Bidco.
Vanisko said Tuesday that Ayr Wellness plans to apply to be a dual-use facility, which would allow selling both medical marijuana and marijuana on the retail market when it launches in July 2027, in both HSA regions.
Ayr Wellness employs 169 people in Virginia, according to Vanisko.
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