Ascend Wellness Holdings Raises $50 Million Through Senior Secured Notes Placement

Ascend Wellness Holdings Closes $50 Million Private Placement

Ascend Wellness Holdings, Inc. (AWH) has made headlines by successfully closing a private placement of $50 million, comprising its 12.75% Senior Secured Notes, which will mature in 2029. This strategic move is a significant aspect of AWH's long-term plans and illustrates the company's resilience and commitment to financial growth within the burgeoning cannabis industry.

With this placement, AWH adds to its previously issued total of $250 million in senior secured notes. The recent issuance follows earlier placements of $235 million in July 2024 and an additional $15 million in January 2025. This funding will be utilized to prepay existing loans, thereby strengthening the company’s financial position and allowing it to focus on its growth initiatives, including densification strategies across its operations in multiple states.

Sam Brill, the Chief Executive Officer of AWH, expressed his satisfaction with the outcome of the private placement, highlighting the overwhelming demand it attracted from investors. “This refinancing was always part of our long-term strategic plan, and we're very pleased with the strong demand and support from our lenders,” he stated. Brill further emphasized that the backing from investors reflects their confidence in AWH and their operational strategies, reinforcing the business's long-term value.

The 12.75% Senior Secured Notes will yield interest, payable semi-annually until they reach maturity. A major advantage of these notes is that AWH has the option to redeem them at par until July 15, 2026, providing the company with flexibility in its future capital management.

Seaport Global Securities LLC managed the placement, acting as lead financial advisor. Legal support for this transaction was provided by notable firms including Foley Hoag LLP and Stikeman Elliott LLP, indicating the high level of expertise involved in this complex financial maneuver.

AWH operates across several key markets, including Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania, leveraging vertically integrated operations from cultivation to retail distribution. With their own product lines like Common Goods and Effin’, AWH positions itself as a significant player in the rapidly evolving cannabis space.

The notes were categorized as senior secured obligations, ensuring that they are backed by substantial company assets, thus presenting a lower risk to investors. This strategic financing is expected to pave the way for future growth and elevating market competitiveness, while generating value for stakeholders.

As AWH moves forward, the company remains committed to scaling its operations and enhancing its portfolio of high-quality cannabis products. Their ability to attract significant capital investments underscores the potential and confidence in the cannabis sector, as businesses like AWH continue to evolve and adapt to market demands.

In conclusion, Ascend Wellness Holdings is reaffirming its strategic objectives through this considerable private placement, marking a robust step toward enhancing its financial stability and growth in the cannabis industry. The company's strong position and lender support suggest a bright future ahead, as it navigates through this evolving landscape with confidence.