Ascend Wellness Stock Price, News & Analysis

Ascend Wellness Holdings (CSE: AAWH.U, OTCQX: AAWH) reported its Q3 2024 financial results. Net revenue reached $141.6 million, a 0.3% year-over-year and 0.1% quarter-over-quarter increase. Retail revenue was $93.6 million, a 7.6% year-over-year decrease but a 0.6% quarter-over-quarter increase. Wholesale revenue increased 20.1% year-over-year but decreased 0.8% quarter-over-quarter to $48.0 million. The net loss was $28.3 million, compared to $11.2 million in Q3 2023 and $21.8 million in Q2 2024. Adjusted EBITDA was $25.1 million, a 14.9% year-over-year and 11.4% quarter-over-quarter decline. The company aims to save $30 million annually through transformation initiatives and has reduced management headcount by 15% and retail and operations headcount by 10%. Cash and cash equivalents stood at $65.3 million with a net debt of $240.6 million. AWH also launched a new edibles brand, Effin', which quickly became a top seller.

Ascend Wellness Holdings (AWH) has launched Effin', a new edibles-only brand focusing on targeted cannabis experiences. The brand combines THC with minor cannabinoids like THCV, CBN, CBG, and CBD to deliver specific effects. The initial product line includes four SKUs:

1. Effin' Chillin': 10 mg THC to 10 mg CBD for relaxation
2. Effin' Sleep: 10 mg THC to 5 mg CBN for better sleep
3. Effin' Hang: 20 mg CBG to 10 mg THC for balanced energy
4. Effin' Do It: 10 mg THC to 10 mg THCV for motivation and focus

Effin' launched in Massachusetts and Illinois in early October, with a New Jersey launch planned for late October 2024. The brand aims to provide consistent, reliable effects tailored to customers' needs.

Ascend Wellness Holdings (AWH), a leading multi-state, vertically integrated cannabis operator, has announced its upcoming third quarter 2024 earnings conference call. The call is scheduled for Tuesday, November 12, 2024, at 8:30 AM ET, following the release of the company's financial results. Investors can access the call by dialing 1 (888) 699-1199 or through a live webcast available on the AWH investor relations website.

AWH operates in Illinois, Maryland, Massachusetts, Michigan, Ohio, New Jersey, and Pennsylvania, with state-of-the-art cultivation facilities producing award-winning strains and a curated product selection. The company distributes its in-house brands including Common Goods, Simply Herb, Ozone, Ozone Reserve, and Royale.

Ascend Wellness Holdings (CSE: AAWH-U.CN, OTCQX: AAWH) has opened its fifth medical dispensary in Pennsylvania, located in Whitehall. This marks the company's 39th location across seven states. The new Ascend Dispensary Outlet Whitehall will serve patients in the greater Allentown area, offering a wide range of medical marijuana products.

The grand opening is scheduled for September 13th, featuring a ribbon-cutting ceremony and local vendor pop-ups. Ascend's outlet dispensary model focuses on high-quality products at consistently low prices, with expertly trained staff. The company also offers a rewards program called the Ascenders Club, where patients can earn points on purchases.

Ascend Wellness Holdings (AAWH) has announced significant leadership changes as part of its strategy to align operations with long-term goals and financial priorities. Samuel Brill, current Director, has been appointed as CEO, replacing John Hartmann. Francis Perullo, Co-Founder and current director, has been named President, while Roman Nemchenko, previously Chief Accounting Officer, has been promoted to CFO.

These changes aim to enhance operational efficiency and financial performance. The new leadership team is focused on improving margins, cash flow, and driving sustainable growth. The company's Executive Chair, Abner Kurtin, expressed confidence that these changes will bring focus back to fundamentals and position AWH for future success.

Ascend Wellness Holdings (CSE: AAWH-U.CN, OTCQX: AAWH) has expanded non-medical cannabis sales to its fifth Ohio location in Carroll. This follows the successful launch at four other dispensaries last week, which saw daily sales triple from $12,740 to $33,864. CEO John Hartmann reported revenue surges of at least 3x at the first four stores.

Ohio's cannabis market showed $484.4 million in medical sales in 2023, demonstrating significant potential. Ascend operates five dispensaries and a cultivation facility in Ohio, producing branded products including vapes, gummies, and flower. The company is well-positioned to meet growing demand in this evolving market.

Ascend Wellness Holdings (CSE: AAWH-U.CN, OTCQX: AAWH) has expanded access to non-medical cannabis customers in Ohio. Starting August 6th, the company can sell to customers over 21 at its dispensaries in Coshocton, Cincinnati, and Sandusky, with Piqua following on August 7th. Ascend operates five dispensaries in Ohio and a cultivation and manufacturing facility, producing Common Goods, Simply Herb, and Ozone branded products.

CEO John Hartmann emphasized Ascend's commitment to serving both medical patients and new non-medical customers while maintaining high standards of safety, compliance, and quality. Ohio's cannabis market reported $484.4 million in medical cannabis sales in 2023, demonstrating significant potential for growth as the state transitions to allow dual-use dispensaries.

Ascend Wellness Holdings (AAWH) reported its Q2 2024 financial results, showing 15.1% year-over-year growth in net revenue to $141.5 million. The company achieved a 32.9% increase in Adjusted EBITDA to $28.3 million, representing a 20.0% margin. AWH generated positive cash flow from operations for the sixth consecutive quarter, with approximately $32 million in Q2. However, the company faced challenges, including retail headwinds in some markets. As a result, AWH revised its full-year guidance, now anticipating net revenue growth between 11-13% and Adjusted EBITDA growth between 5-10% for 2024 compared to the previous year. The company also successfully refinanced $215 million of its existing term loan and opened new dispensaries in Pennsylvania and New Jersey.

Ascend Wellness Holdings (AAWH) has successfully closed a $235 million private placement of 12.75% Senior Secured Notes due 2029. The notes were issued at 94.75% of face value. AWH used the net proceeds, along with cash on hand, to prepay $215 million of its existing term loan. This strategic refinancing is expected to enhance the company's financial flexibility and strengthen its balance sheet.

The remaining $60 million of the term loan will continue at 9.5% interest and can be repaid at par between February and August 2025. The new notes are senior secured obligations, payable semi-annually, and mature on July 16, 2029. They are secured by substantially all assets of the company and certain subsidiaries. Seaport Global Securities acted as lead financial advisor and sole placement agent for the notes.