Ascend Wellness Secures $15 Million in Private Placement to Bolster Growth Initiatives

LOS ANGELES- Ascend Wellness Holdings, Inc. a multi-state, vertically integrated cannabis operator, has successfully completed a $15 million private placement of its 12.75% Senior Secured Notes due 2029.

These notes were issued at 97% of their face value and will mature on July 16, 2029. This transaction is an extension of the company’s earlier $235 million debt offering completed in July 2024, which was among the largest in the U.S. cannabis industry.

The proceeds from this financing are earmarked for general corporate purposes, including funding growth initiatives. CEO Sam Brill, who assumed leadership in August 2024, emphasized the company’s strategic focus, stating, “Our strategy is clear. We are well-positioned with the resources necessary to expand our presence in our core markets through diversification initiatives that maximize the value of our existing assets.” Brill outlined plans to open at least 20 new dispensaries, aiming to increase Ascend’s retail footprint by 50%.

Currently, Ascend operates nearly 40 medical and adult-use cannabis stores across seven states, offering brands such as Common Goods, Simply Herb, and Ozone Reserve.

Despite reporting a slight 0.3% increase in net revenue to $141.6 million for the third quarter of 2024, Ascend faced challenges with a net loss of $28.3 million, more than doubling from the same period the previous year.

In response, the company has initiated cost-saving measures targeting $30 million in annual savings. These measures include reducing staff at offices and stores, optimizing infrastructure, and improving operational efficiency.