Ascend Wellness Stock Price, News & Analysis

Ascend Wellness Holdings (AAWH) has successfully closed a $15 million private placement of 12.75% Senior Secured Notes due 2029. The notes were issued at 97.00% of face value and are part of the same series as the previously issued $235 million aggregate principal amount from July 16, 2024.

The notes bear interest at 12.75% per annum, payable semi-annually, and are secured by substantially all assets of the company and certain subsidiaries on a first lien basis. The company plans to use the net proceeds for general corporate purposes and growth initiatives.

The notes were offered through private placement in Canada and the United States to qualified institutional buyers and accredited investors, subject to a four-month hold period under Canadian securities laws. Seaport Global Securities served as lead financial advisor and sole placement agent for the offering.

Ascend Wellness Holdings (AAWH) has entered into an agency agreement with Seaport Global Securities to issue $15 million of 12.75% Senior Secured Notes due 2029. The Notes, priced at 97.00% of face value, will be part of the same series as the $235 million notes issued in July 2024.

The company plans to use the proceeds for general corporate purposes and growth initiatives, including a strategic expansion plan to open 20 additional retail locations, increasing their network footprint by approximately 50%. The Notes will be senior secured obligations with semi-annual interest payments and will mature on July 16, 2029.

The offering, expected to close around January 13, 2025, includes first-lien security on substantially all company assets and will be guaranteed by certain subsidiaries. The Notes will be offered through private placement in Canada and to qualified institutional buyers in the United States.

Ascend Wellness Holdings (AAWH) has announced a new share buyback program starting January 2, 2025. The company received authorization to repurchase up to 10,215,690 shares (approximately 5% of outstanding common shares) or US$2.25 million worth of common shares, whichever is lesser. The buyback program will run through January 1, 2026, with purchases to be made on the CSE, OTCQX, or alternative trading systems through ATB Securities Inc.

As of December 24, 2024, AAWH had 204,313,808 outstanding common shares. CEO Sam Brill emphasized that this initiative, along with recent board member purchases, demonstrates confidence in the company's strategy and commitment to shareholder value. All purchased shares will be cancelled, and the program can be modified or terminated at any time.

Ascend Wellness Holdings (AAWH) has completed the repurchase and cancellation of 11,000,000 shares of its Class A common stock, representing over 5% of outstanding shares, from an institutional investor at a significant discount to the CSE closing price on December 17, 2024. The company received consent from term loan holders to repurchase up to $5 million of shares.

The transaction, unanimously approved by AWH's Board of Directors, aims to reduce stock pressure and float. CEO Sam Brill emphasized that current market valuation doesn't reflect the company's true value and strength. The company focuses on improving margins, densifying retail footprint, and generating sustainable cash flow as it enters 2025.

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.