#United States #cannabis industry #Morristown #Ascend Wellness #AWH

Ascend Wellness Holdings Completes Major Share Buyback

In a noteworthy move, Ascend Wellness Holdings, Inc. (AWH), a robust player in the multi-state cannabis sector, has successfully completed the repurchase and subsequent cancellation of 11,000,000 shares of its Class A common stock. This represents over 5% of the total outstanding shares and was conducted in a private transaction with an institutional investor.

The decision to buy back shares was strategically planned, as the shares were acquired at a significant discount compared to their market closing price on the Canadian Securities Exchange (CSE) on December 17, 2024. The repurchase was unanimously sanctioned by AWH's Board of Directors and was made possible after receiving the green light from its term loan holders to repurchase up to $5 million worth of its common stocks.

Sam Brill, AWH’s CEO, articulated the rationale behind this significant financial maneuver, stating, “We strongly believe that our current market valuation does not fully reflect the true strength and value of our business. This transaction represented a unique opportunity for us to support our existing investors by efficiently removing unnecessary pressure on our stock and reducing our float.”

As AWH approaches 2025, the company aims not only to enhance its market position but also to focus on key objectives such as improving margins and expanding its retail footprint to drive vertical sales. This strategic repurchase is part of a broader initiative to generate sustainable cash flow and increased shareholder returns.

This move is expected to be beneficial for AWH shareholders since the company’s shares on the CSE have not been accurately reflecting its intrinsic value. The share buyback signifies AWH’s commitment to optimizing its capital structure and enhancing shareholder value in a competitive cannabis market.

About Ascend Wellness Holdings

AWH operates as a vertically integrated cannabis company, holding assets in several states including Illinois, Maryland, Massachusetts, Michigan, Ohio, New Jersey, and Pennsylvania. The company is renowned for its state-of-the-art cultivation facilities, producing award-winning cannabis strains and a curated product selection for both retail and wholesale clients. Among its popular product offerings are brands such as Common Goods, Simply Herb, Ozone, Effin’, and Royale.

In line with the announcement, AWH has highlighted its focus on setting the standards for innovation and quality in the cannabis space. The company remains steadfast in its goal to become a leader in the industry by continuously adapting to market trends and customer needs.

However, investors are cautioned to be aware of the inherent uncertainties and risks that come with forward-looking statements regarding AWH's future growth prospects and operational strategies.

Overall, this buyback reinforces Ascend Wellness Holdings’ resilience and confidence in its business model, providing a platform for continued growth in the evolving landscape of the cannabis market.