Ascend Wellness Stock Rises Amid Major Debt Refinancing Deal

LOS ANGELES- Ascend Wellness Holdings, Inc. saw its stock price increase by 2.9% on Friday, trading as high as $1.07 before closing at the same price. This trading activity represented a 301% increase in volume, with 48,219 shares changing hands, compared to the average daily volume of 12,015 shares.

The company, a major player in the cannabis industry, recently announced a significant financial transaction: a $235 million private placement of 12.75% senior secured notes due in 2029. This marks one of the largest debt-raising efforts in the U.S. cannabis sector. The funds will be used to prepay $215 million of an existing term loan, thereby enhancing the company’s financial flexibility and strengthening its balance sheet.

CEO John Hartmann described the refinancing as a critical milestone for Ascend Wellness, reflecting lender confidence in the company’s growth prospects. The debt deal ranks as the fifth-largest in the cannabis industry, according to Viridian Capital.

Despite the recent uptick, Ascend Wellness’s stock has declined 17.5% year-to-date. The refinancing aims to stabilize the company’s financial standing and support future growth. Seaport Global Securities LLC acted as the lead financial advisor for the transaction.