Edie Parker and AWH Announce Strategic Licensing Agreement to Bring Flower by Edie Parker Products to Illinois and Massachusetts

Flower by Edie Parker high-end pre-rolls available this summer in AWH retail locations across two of the country’s ten top-selling cannabis markets

NEW YORK, May 26, 2021 — Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE:AAWH.U), a multi-state, vertically integrated cannabis operator, and Edie Parker, a luxury fashion brand known for its vintage-inspired clutches and handbags, today announced an exclusive wholesale licensing agreement to bring the most coveted products from Edie Parker’s sister brand, Flower by Edie Parker, to AWH retail locations in Illinois and Massachusetts.

The agreement will allow AWH to produce Flower by Edie Parker pre-rolls for sale at AWH’s retail locations in two cannabis markets expected to nearly triple in size between 2020 and 2022, according to data from CB Insights and state reports. Flower by Edie Parker first expanded beyond California earlier this year with the launch of sales in Colorado, their presence now spanning four states with the addition of Illinois and Massachusetts. This agreement reinforces AWH’s position as an industry-leading operator on the forefront of bringing popular West Coast brands to Midwest and East Coast markets.

“Edie Parker is a nationally-recognized, celebrity-backed brand and we’re thrilled to bring products from its cannabis-centric sister brand, Flower by Edie Parker, to our consumers in the Midwest and East Coast,” said Abner Kurtin, Chief Executive Officer of AWH. “This partnership provides Ascend with a unique opportunity to expand key product categories such as pre-rolls and target the rapidly growing female consumer sector. We are continuously working to diversify our Ozone offering and meet the distinct preferences of all consumer segments, and we’re delighted to introduce a female-focused brand to our Midwest and East Coast clientele.”

“Partnering with AWH allows us to bring our line of attractive and considered cannabis products to new audiences and empower even more modern consumers to openly celebrate the role that cannabis plays in their lives,” added Brett Heyman, Founder and Creative Director of Flower by Edie Parker. “As an East Coast resident, I’m proud to finally share Edie Parker’s distinct product line with my own community of cannabis enthusiasts.”

AWH and Edie Parker are eager to provide the market’s sophisticated, fashion-forward female cannabis consumer segment with an ultra-luxury brand and product line that caters to their interests. The female demographic now represents the fastest-growing consumer segment in the cannabis industry despite being underserved by the market. Women accounted for only 35% of legal cannabis sales in 2019, but their market share increased 1.6% year-over-year to 36.6% in 2020. The arrival of Flower by Edie Parker products to AWH retail locations will help meet the growing demand for female-centric brands and products to better serve female consumer demographics.

About AWH
AWH is a vertically integrated operator with assets and partners in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com.

Media & Investor Contact
MATTIO Communications
[email protected]

About Flower by Edie Parker
Dubbed “the Coco Chanel of Luxury Cannabis” by Forbes, Flower by Edie Parker continues to usher in a new generation of cannabis smokers with an irreverent and unapologetically bold collection of design-forward accessories and cannabis accouterments. Colliding the worlds of fashion and cannabis ‘for a good time’ – Flower by Edie Parker continues to break barriers and de-stigmatize the use of cannabis as a social act.

Priced from $10 to $800, Flower by Edie Parker’s collection features gorgeous acrylic, ceramic and hand blown glass accessories including stash jars, lighters, ashtrays, grinders, bongs, blunt tips, pipes, rolling papers, rolling trays, and a distinctly canna-friendly take on her signature acrylic bags. Beyond seasonal collections of modern accessories featuring designer Brett Heyman’s tongue-in-cheek motifs and signature style, Flower by Edie Parker also offers a full roster of private label flower strains and CBD-only offerings including vape pens, pre-rolls, tinctures, and topicals.

Since launching in 2019, Flower by Edie Parker & The Edie Parker Foundation, a 501(c)(3) status organization, aims to bring criminal justice reform and racial equality amongst vulnerable, largely marginalized communities through partnering organizations; Women’s Prison Association, The Bail Project, Feeding America, City Meals on Wheels & more. Visit www.EdieParkerFlower.com or @EdieParkerFlower for more information.

Media Contact
MATTIO Communications
[email protected]

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, and on certain assumptions and analysis made by the Company in light of experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Company’s registration statement on Form S-1, as amended, and in the Company’s other reports and filings with the applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The CSE has not reviewed, approved or disapproved the content of this news release.


AWH Launches Its 6,000 Sq. Ft. Flagship New Jersey Medical-Use Cannabis Dispensary in Rochelle Park

AWH’s second Ascend dispensary in the state offers Rochelle Park and Northern New Jersey access to an elevated patient journey

ROCHELLE PARK, N.J.May 20, 2021– Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U), has announced the opening of its Rochelle Park, New Jersey medical-use dispensary. The opening marks AWH’s second Ascend location in the state and the first dispensary to operate in Rochelle Park.

Located at 174 Route-17 N, the dispensary will benefit from its position along one of the most highly-trafficked corridors in the country, seeing over 100,000 vehicles per day on average. It is the first cannabis dispensary to open in Rochelle Park, offering patients access to a wide selection of high-quality products across flower, pre-rolls, vapes, ingestibles and topicals.

The dispensary will employ 65 staff and immediately begin accepting new patients. The store is designed to accommodate high throughput, providing multiple customer touchpoints and offering patients express service through its streamlined online ordering and in-store pickup.

“We are thrilled to open Ascend Rochelle Park and remain committed to meeting patients’ needs through an elevated patient journey,” said Chris Melillo, Chief Revenue Officer of AWH. “Built to complete the customer purchase process quickly and at scale, our new location will help meet the rising demand for affordable, safe medical cannabis products in New Jersey. We are grateful for the support of Mayor Gail Artola and Rochelle Park residents in the opening of our dispensary.”

There are currently 13 medical-use dispensaries in New Jersey serving the state’s more than 100,000 registered medical marijuana patients. Ascend Rochelle Park dispensary is a key addition to New Jersey that will increase supply of medical cannabis products to better meet patients’ needs.

AWH has proudly partnered with the Last Prisoner Project, a nonprofit organization dedicated to cannabis criminal justice reform, as part of its social equity and corporate responsibility initiative. AWH has matched the $125,000 total raised in customer donations ahead of the July 2021 goal.

About AWH:
AWH (CSE:AAWH.U) is a vertically integrated operator with assets and partners in IllinoisMichiganOhioMassachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products. Bettering your life with cannabis. For more information, visit www.awholdings.com.

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, and on certain assumptions and analysis made by the Company in light of experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Company’s registration statement on Form S-1, as amended, and in the Company’s other reports and filings with the applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The CSE has not reviewed, approved or disapproved the content of this news release.

SOURCE Ascend Wellness Holdings, Inc.

For further information:

Media & Investor Contact:
MATTIO Communications,
[email protected]

 


AWH Logo

AWH ANNOUNCES Q1 2021 FINANCIAL RESULTS

Q1 2021 Revenue Increases 21.8% Sequentially to $66.1 Million

Adds Five New Dispensaries Since the Beginning of 2021, Including Boston Flagship Location

2021 Revenue Guidance Outlook Issued; Expects Full Year 2021 Revenue of $320-$340 Million

Appoints Joe Hinrichs, former President, Automotive, at Ford Motor Company, to the Board of Directors

NEW YORK, NY, May 18, 2021 — Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U), a vertically integrated multi-state operator focused on bettering lives through cannabis, today reported its financial results for the quarter ended March 31, 2021.  The Company has applied to be quoted on the OTCQX, part of the OTC Markets Group.  Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.

Q1 2021 Financial Highlights

  • Revenue: Total revenue of $66.1 million increased 21.8% sequentially and 192.7% year-over-year.
  • Adjusted EBITDA[1]: Adjusted EBITDA of $15.8 million represented a 57.8% increase sequentially. Adjusted EBITDA Margin of 23.9% represented a 550 basis point increase compared to the fourth quarter of 2020.
  • Net Loss: Net loss of $48.2 million during the first quarter of 2021 which included a $36.5 million one-time non-cash charge, as compared a net loss of $7.1 million in the prior year quarter.
  • Balance Sheet: As of March 31, 2021, cash and cash equivalents were $62.6 million. After the end of the quarter, AWH raised $86.4 million of net proceeds from the Company’s initial public offering, including the over-allotment and after deducting underwriting discounts and commissions.

Management Commentary

“Our first quarter results demonstrate extraordinary sequential revenue and Adjusted EBITDA growth, which reflect the strong fundamentals of our business,” said Abner Kurtin, Founder and CEO of AWH.  “By allocating our investors’ capital in emerging recreational markets with strong barriers to entry, we continue to position AWH for sustainable growth in the most attractive markets in the U.S.”

Mr. Kurtin added, “We are also proud to announce that Joe Hinrichs will be joining our Board. Mr. Hinrichs worked at Ford Motor Company for 19 years before retiring in 2020, most recently as President, Automotive.  Adding a distinguished leader of a Fortune 500 company to our Board represents a milestone for Ascend and the industry.  Mr. Hinrichs’ leadership, operational experience and ability to connect with employees at all levels of the organization will be invaluable to AWH and myself.  Welcome aboard Joe!”

Mr. Hinrichs added, “AWH has delivered on its strategy to bring together flagship retail assets in coveted, high traffic regions with a curated assortment of high-quality products that previously did not exist in the market.  I’m excited to be joining AWH during such a pivotal time in its growth and look forward to working with the leadership team and my fellow directors to provide specialized operational advice to drive long-term growth and profitability.”

Addition of Joe Hinrichs to the Board of Directors

Mr. Hinrichs spent 19 years at Ford Motor Company, most recently as President of Automotive. Prior to serving in this capacity, he served as President, Global Operations; President, The Americas; President, Asia Pacific and Africa; Chairman & CEO, Ford China; and Group Vice President, Global Manufacturing and Labor Affairs, from 2007 to 2019.  Prior to joining Ford, he was a partner and senior vice president of Ryan Enterprises Group, a private investment group in Chicago.  Earlier in his career, he spent 10 years at General Motors in various positions in engineering and manufacturing, including plant manager.  Mr. Hinrichs earned a bachelor’s degree in electrical engineering magna cum laude from the University of Dayton (Ohio) in 1989, and a master’s degree in business administration from the Harvard Business School in 1994 as a GM Fellow.

Recent Business Developments

Retail Business

  • During the first quarter of 2021, AWH opened two new dispensaries, in Fairview Heights, Illinois, and Grand Rapids, Michigan, which brought the Company’s total to 14 open and operating dispensaries as of March 31, 2021. Subsequently, AWH opened its flagship location in Downtown Boston, Massachusetts on May 6, 2021 and its second Northern New Jersey location in Rochelle Park opened on May 15, 2021.  The Company also opened the Ascend by Midway location in Chicago Ridge, Illinois and now has 17 operating dispensaries across Illinois, Michigan, New Jersey, and Massachusetts.

 

  • Total retail revenue increased to $45.5 million for the first quarter of 2021, representing an increase of 20.0% sequentially. Sequential revenue growth varied by state, but exceeded 17% in all states in which the Company operates.  In particular, revenue growth at the Company’s Montclair, New Jersey dispensary exceeded 40% sequentially.

 

  • Total transactions increased 27.9% sequentially to approximately 411,000. Average value per transaction declined by 6.2% to approximately $111 due to a mix shift towards recreational customers and markets like Chicago, Illinois and Michigan, which have lower average tickets.

Wholesale Business

  • Gross wholesale revenue increased to $30.3 million, representing an increase of 38.0% sequentially primarily driven by increased output at the Company’s cultivation facility located in Barry, Illinois. Net wholesale revenue, after intercompany sales, increased to $20.6 million, representing an increase of 26.1% sequentially
  • Pound equivalents sold increased 16.6% sequentially and 316.2% year-over-year to approximately 8,600 pounds.
  • Gross revenue per pound equivalent was approximately $3,530, representing a 18.3% increase sequentially and a 9.2% decrease year-over-year. Revenue per pound equivalent in the prior year benefited from supply constraints in Illinois following the legalization of adult use sales beginning in January 2020.
  • On May 5, 2021 the Company closed on its acquisition of a cultivation license in Ohio.

Revenue Guidance

Based on the Company’s existing operations, current regulations, and foreseeable growth, AWH Management currently estimate annual revenue for 2021 will be in the range of $320 million to $340 million.

(in millions)2020

Actual

2021

Guidance

Revenue, net$144$320 – $340

First Quarter 2021 Financial Overview

Total revenue during the first quarter of 2021 was $66.1 million, which represents an increase of 192.7% from $22.6 million during the first quarter of 2020 and an increase of 21.8% from $54.3 million during the fourth quarter of 2020.  Revenue growth was driven by new store openings, increased traffic at open stores, and increase cultivation and production activity.  The Company continues to invest in the build-out of its cultivation and manufacturing capabilities in Illinois, New Jersey, Massachusetts, and Michigan.

Gross profit for the first quarter of 2021 was $29.7 million, or 44.9% of revenue, as compared to $7.5 million, or 33.2% of revenue, for the first quarter of 2020.

Total general and administrative expenses for the first quarter of 2021 were $25.1 million, or 38.0% of revenue, as compared to $9.6 million, or 42.7% of revenue, for the first quarter of 2020.

Total other expense was $7.3 million for the first quarter of 2021, consisting primarily of interest expense.

Net loss attributable to AWH for the first quarter of 2021 was $48.2 million, or $0.45 per basic and diluted historical common unit, as compared to a net loss of $7.5 million, or $0.08 per basic and diluted historical common unit, for the first quarter of 2020.

Balance Sheet and Liquidity

As of March 31, 2021, the Company had cash and cash equivalents of $62.6 million.  Total debt outstanding was $252.4 million.  The debt balance includes $125.0 million of convertible debt, which was converted to shares of AWH Class A common stock in May 2021 as part of the IPO.  The IPO raised net proceeds of $75.2 million, after deducting underwriting discounts and commissions, through the issuance of 10.0 million shares of Class A common stock.  On May 7, 2021, the underwriters exercised their over-allotment option to acquire an additional 1.5 million shares of Class A common stock in full, which resulted in additional net proceeds of $11.3 million to the Company.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the SEC.  Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

Conference Call and Webcast

AWH will host a conference call on Wednesday, May 18, 2021 at 5:00 p.m. ET to discuss its financial results for the quarter ended March 31, 2021.  The conference call may be accessed by dialing (888) 664-6383 with conference ID 14638132.  A live audio webcast of the call will also be available on the Investor Relations section of AWH’s website at https://awholdings.com/investors/ and will be archived for replay.

About Ascend Wellness Holdings, Inc.

AWH is a vertically integrated operator with assets and partners in Illinois, Michigan, Ohio, Massachusetts and New Jersey.  AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products.  AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com.

Additional information relating to the Company’s first quarter 2021 results is available on the Investor Relations section of AWH’s website at https://awholdings.com/investors/, the SEC’s website at www.sec.gov and Canada’s System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

 

Cautionary Note Regarding Forward-Looking Information

This news release includes forward-looking information and statements, which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company.  Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements.  These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience of the Company and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein.  Such factors include, among others: the risks and uncertainties identified in the Supplemented PREP Prospectus and the Prospectus and in the Company’s other reports and filings with the applicable Canadian securities regulators and the SEC.  Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements.  Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.  The CSE has not reviewed, approved or disapproved the content of this news release.

 

 

Investor Contact:

Jason Liotta

SVP Finance

[email protected]

 

Robert Kelly

Mattio Communications

416-992-4539

 

Three Months Ended March 31,
(in thousands, except per unit amounts)20212020
Revenue, net$66,137$22,592
Cost of goods sold(36,470)(15,100)
Gross profit29,6677,492
Operating expenses
General and administrative expenses25,1469,649
Settlement expense36,511
Total operating expenses61,6579,649
Operating loss(31,990)(2,157)
Other (expense) income
Interest expense(7,337)(2,530)
Other, net806
Total other expense(7,257)(2,524)
Loss before income taxes(39,247)(4,681)
Income tax expense(8,976)(2,437)
Net loss(48,223)(7,118)
Less: net income attributable to non-controlling interests360
Net loss attributable to Ascend Wellness Holdings, Inc.$(48,223)$(7,478)
Net loss per unit attributable to Ascend Wellness Holdings, Inc. — basic and diluted(1)$(0.45)$(0.08)
Weighted-average units outstanding — basic and diluted(1)106,44389,821

 

(1)     Net loss per unit is based on the weighted-average historical common units outstanding during each respective period.

 

 

Three Months Ended March 31,
(in thousands)20212020
Net cash (used in) provided by operating activities$(7,829)$3,861
Cash flows from investing activities
Additions to capital assets(23,351)(7,561)
Investments in notes receivable(760)(185)
Collection of notes receivable82
Purchase of businesses, net of cash acquired(11,174)
Net cash used in investing activities(35,203)(7,746)
Proceeds from issuance of debt49,500125
Repayments of debt(1,286)
Proceeds from finance leases3,750
Repayments under finance leases(82)
Net cash provided by financing activities48,2143,793
Net increase (decrease) in cash, cash equivalents, and restricted cash5,182(92)
Cash, cash equivalents, and restricted cash at beginning of period58,09712,805
Cash, cash equivalents, and restricted cash at end of period$63,279$12,713

 

 

 

(in thousands)March 31, 2021December 31, 2020
Cash and cash equivalents$62,633$56,547
Restricted cash6461,550
Inventory38,62028,997
Other current assets39,17047,084
Property and equipment, net150,075120,540
Operating lease right-of-use assets95,73184,642
Intangible assets, net47,27250,461
Goodwill24,30222,798
Other noncurrent assets22,83915,129
Total Assets$481,288$427,748
Total current liabilities$126,129$115,285
Long-term debt, net201,556152,277
Operating lease liabilities, noncurrent168,122156,400
Total members’ (deficit) equity(14,519)3,786
Total Liabilities and Members’ Equity$481,288$427,748

 

 

We define “Adjusted Gross Profit” as gross profit excluding non-cash inventory costs. We define “Adjusted Gross Margin” as Adjusted Gross Profit as a percentage of net revenue.  Our “Adjusted EBITDA” is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies.  We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of net revenue. Management calculates Adjusted EBITDA as the reported net loss, adjusted to exclude: income tax expense; other (income) expense; interest expense, depreciation and amortization; depreciation and amortization included in cost of goods sold; loss on sale of assets; non-cash inventory adjustments; equity based compensation; start-up costs; transaction-related and other non-recurring expenses, and litigation settlement.  Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information, as this measure demonstrates the operating performance of the business.  Non-GAAP financial measures may be considered in addition to the results prepared in accordance with U.S. GAAP, but they should not be considered a substitute for, or superior to, U.S. GAAP results.

The following table presents Adjusted Gross Profit for the three months ended March 31, 2021 and 2020:

Three Months Ended March 31,
($ in thousands)20212020
Gross Profit$29,667$7,492
Depreciation and amortization included in cost of goods sold2,1621,069
Non-cash inventory adjustments750
Adjusted Gross Profit$32,579$8,561
Adjusted Gross Margin49.3 %37.9 %

The following table presents Adjusted EBITDA for the three months ended March 31, 2021 and 2020:

Three Months Ended March 31,
(in thousands)20212020
Net income (loss)$(48,223)$(7,118)
Income tax expense8,9762,437
Other (income) expense(80)(6)
Interest expense7,3372,530
Depreciation and amortization2,4191,951
Depreciation and amortization included in cost of goods sold2,1621,069
Non-cash inventory adjustments750
Equity based compensation2,487185
Start-up costs(1)1,3111,419
Transaction-related and other non-recurring expenses(2)2,178103
Litigation settlement36,511
Adjusted EBITDA$15,828$2,570
Adjusted EBITDA Margin23.9 %11.4 %
  • One-time costs associated with acquiring real estate, obtaining licenses and permits, and other costs incurred before commencement of operations at certain locations.
  • Legal and professional fees associated with the Company’s go-public transaction and other non-recurring expenses.

[1]       Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA are a non-GAAP financial measures. Please see the “Supplemental Information (Unaudited) Regarding Non-GAAP Financial Measures” at the end of this press release for a reconciliation of non-GAAP to GAAP measures.

 


AWH to Hold First Quarter 2021 Earnings Conference Call on Tuesday, May 18, 2021

NEW YORKMay 11, 2021  – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U), a multi-state, vertically integrated cannabis operator, today announced that it will hold a conference call on Tuesday May 18, 2021 at 5:00PM ET following the release of its first quarter 2021 financial results after market close.

The earnings conference call may be accessed by dialing (888) 664-6383 with conference ID: 14638132. A live audio webcast will also be available on the Investor Relations section of AWH website at https://awholdings.com/investors and will be archived for replay.

CONFERENCE CALL DETAILS

DATE:

Tuesday, May 18, 2021

TIME:

5:00 PM Eastern Time

WEBCAST:

Click to Access

DIAL-IN NUMBER:

(888) 664-6383

CONFERENCE ID:

14638132

REPLAY:

(416) 764-8677 or (888) 390-0541


Replay Code: 903675#


Available until 12:00AM Eastern Time on Tuesday, June 1st, 2021

About AWH:

AWH is a vertically integrated operator with assets and partners in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com .

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience of the Company and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Supplemented PREP Prospectus and the Prospectus and in the Company’s other reports and filings with the applicable Canadian securities regulators and the SEC. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The CSE has not reviewed, approved or disapproved the content of this news release.

SOURCE Ascend Wellness Holdings, LLC

For further information:

Media Contact:
MATTIO Communications
[email protected]

Investor Contact:
[email protected]


AWH Announces Exercise in Full and Closing of Over-Allotment Option

NEW YORKMay 7, 2021  – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U), a multi-state, vertically integrated cannabis operator, today announced that the Underwriters (as defined below) of its previously announced initial public offering of Class A common stock (the “Offering”) have fully exercised and closed their option to purchase an additional 1,500,000 shares of Class A common stock at the Offering price of US$8.00 per share for additional gross proceeds to the Company of US$12,000,000. After giving effect to the full exercise of the over-allotment option, the total number of shares sold by AWH in the Offering increased to 11,500,000 shares and gross proceeds increased to US$92,000,000.

The Offering was conducted through a syndicate of underwriters led by Canaccord Genuity, as sole book-running manager, and included Beacon Securities Limited, Eight Capital, ATB Capital Markets Inc., and Cormark Securities Inc. (collectively, the “Underwriters”).

The Offering was made by means of a prospectus relating to the Offering (the “Prospectus”), which has been filed with the United States Securities and Exchange Commission (the “SEC”). Copies of the prospectus may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov, or from: Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, 12th Floor, Boston MA 02110, by email at [email protected].

In Canada, the Offering was completed pursuant to the Company’s supplemented PREP prospectus ‎dated April 28, 2021 (the “Supplemented PREP Prospectus”), which incorporates ‎ the Prospectus as an attachment. A copy of the Supplemented PREP Prospectus is available ‎ under the Company’s profile on SEDAR at www.sedar.com.

About AWH:
AWH is a vertically integrated operator with assets and partners in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com.

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Supplemented PREP Prospectus and the Prospectus and in the Company’s other reports and filings with the applicable Canadian securities regulators and the SEC. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The CSE has not reviewed, approved or disapproved the content of this news release.

SOURCE Ascend Wellness Holdings, LLC

For further information:

Media Contact:
MATTIO Communications
[email protected]

Investor Contact:
[email protected]


AWH Completes Initial Public Offering

NEW YORKMay 4, 2021  – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”), a multi-state, vertically integrated cannabis operator, today announced the closing of its previously announced initial public offering of 10,000,000 shares of its Class A common stock at a public offering price per share of US$8.00 (the “Offering Price”), for total gross proceeds of US$80,000,000 (the “Offering”). The shares will commence trading today on the Canadian Securities Exchange (the “CSE”), under the ticker symbol “AAWH.U”. The Company expects its shares to become quoted on the OTCQX® Best Market operated by OTC Markets Group, Inc. (the “OTCQX”) in the days shortly following the closing of the Offering, if approved by OTCQX.

AWH intends to use the net proceeds from the Offering to primarily fund certain transactions related to the Company’s planned investments in New York and Ohio, capital expenditures, and the remainder for future M&A transactions, general administration, tax liabilities, working capital, and general corporate purposes.

“In just over three years, we have strategically built scale in some of the most attractive U.S. cannabis markets east of the Rockies, as we have executed on our goal to become a top tier operator and better our patients’ and consumers’ lives with cannabis,” said AWH Founder and CEO, Abner Kurtin. “Together, our team has opened 16 dispensaries under our Ascend, MOCA, Midway and Michigan Supply and Provisions retail brands, and brought approximately 74,000 square feet of canopy online across the five states we operate in today. Our success has been driven by our adherence to our strategy of going deep, not wide, and building vertically integrated operations and establishing flagship retail locations in high-traffic areas.”

The Offering was conducted through a syndicate of underwriters led by Canaccord Genuity, as sole book-running manager, and including Beacon Securities Limited, Eight Capital, ATB Capital Markets Inc., and Cormark Securities Inc. (collectively, the “Underwriters”). AWH has granted to the Underwriters an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,500,000  shares of Class A common stock at the Offering Price for additional gross proceeds to the Company of up to US$12,000,000, if the Over-Allotment Option is exercised in full.

The Offering was made by means of a prospectus relating to the Offering (the “Prospectus”), which has been filed with the United States Securities and Exchange Commission (the “SEC”). Copies of the prospectus may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov, or from: Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, 12th Floor, Boston MA 02110, by email at [email protected].

In Canada, the Offering was completed pursuant to the Company’s supplemented PREP prospectus ‎dated April 28, 2021 (the “Supplemented PREP Prospectus”), which incorporates ‎ the Prospectus as an attachment. A copy of the Supplemented PREP Prospectus is available ‎ under the Company’s profile on SEDAR at www.sedar.com.

In addition, in connection with the completion of the Offering and the Company becoming a reporting ‎issuer under applicable Canadian securities laws, AGP Partners, LLC (“AGP”) has filed an early ‎warning report with respect to its shareholdings of the Company. AGP has ownership and control over ‎‎65,000 shares of Class B common stock of the Company, representing 100% of the issued and ‎outstanding shares of Class B common stock of the Company, and 27,512,375 shares of its Class A common stock, ‎representing 16.40% of the issued and outstanding shares of its Class A common stock.

The shares of Class B common stock of the Company are convertible into shares of its Class A common stock on a one-‎for-one basis, which represent, on an as-converted basis, ownership of an ‎aggregate of approximately 0.04% of outstanding shares of its Class A common stock. If the shares of Class B common ‎stock were to be converted into shares of its Class A common stock, the shares of its Class A common stock held by AGP would represent ‎‎27,577,375 shares of its Class A common stock, being approximately 16.44% of the issued and outstanding shares of its Class A common stock on an as-converted basis.‎ Each share of Class B common stock is entitled to 1,000 votes per share.

AGP acquired the aforementioned shares of the Company as part ‎of a corporate conversion under the laws of the State of Delaware (as further described in each of the ‎Prospectus and the Supplemented PREP Prospectus).‎

This news release is being disseminated as required by National Instrument 62-103 – The Early Warning ‎System and Related Take-Over Bid and Insider Reporting Issues. ‎To obtain a copy of the early warning report to be filed under applicable Canadian securities laws in connection with the foregoing, please see the Company’s profile on SEDAR at www.sedar.com or contact Feinberg Hanson LLP, AGP’s legal counsel, at 617-603-3304.

No securities regulatory authority has either approved or disapproved the contents of this press release. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About AWH:
AWH is a vertically integrated operator with assets and partners in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com.

Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding the intended use of the net proceeds from the Offering, the listing of the Class A common stock of the Company on the CSE, the quotation of the Class A common stock of the Company on the OTCQX and other plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends that management believes might affect the Offering, the timing for closing of the Offering, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.

Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Supplemented PREP Prospectus and the Prospectus and in the Company’s other reports and filings with the applicable Canadian securities regulators and the SEC. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The CSE has not reviewed, approved or disapproved the content of this news release.

SOURCE Ascend Wellness Holdings, Inc.

For further information:

Media Contact:

MATTIO Communications
[email protected]

Investor Contact:
[email protected]

 


AWH Opens Downtown Boston's First Adult-Use Cannabis Dispensary

Debut of flagship storefront on Friend Street near TD Garden offers Boston consumers access to a sophisticated, high-end retail cannabis buying experience

Boston – (May 3, 2021) – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”), a multi-state cannabis operator, announced today the opening of its flagship downtown Boston cannabis dispensary. The opening marks AWH’s first retail location in Massachusetts and the first recreational dispensary to operate in the downtown Boston area.

Located at 272 Friend Street in the center of downtown Boston, the dispensary was designed to create a unique and compelling shopping experience for adult-use customers. Strategically situated near Faneuil Hall and steps away from TD Garden, the location offers Boston residents easy access to a vast array of high-quality recreational cannabis products. The store will carry a highly curated product assortment including AWH-owned brands Ozone and Ozone Reserve, which are manufactured at the Company’s MassGrow Tier – 11 cultivation center in Athol.

“We are thrilled to officially open our flagship cannabis dispensary strategically located in the heart of downtown Boston,” said Abner Kurtin, Founder and CEO of AWH. “The first of three dispensaries planned across Massachusetts, the new location will dramatically improve consumer access to high-quality cannabis products in Boston. Our new store is dedicated to educating consumers and providing them with best-in-class retail experiences to change the way people in Massachusetts think about cannabis.”

Andrea Cabral, CEO of Ascend Massachusetts, an AWH subsidiary, added, “We’re eager to introduce our Boston-based customers to an entirely new, state-of-the-art cannabis retail experience based on innovation and education. We value our City and respect our community. Our compliance record and relationships reflect that. We are running professional retail operations and are deeply committed to bettering the lives of our customers and the communities we serve. The exceptional customer service that is central to our mission will be displayed by a team that reflects our City. Our goal for Ascend is to create a model of what’s possible in the cannabis industry and our valued staff will be testament to that.”

AWH is committed to social equity and equal opportunities across all levels of employment, from directors to retail associates, and has built a diverse team to operate its Boston dispensary. The Company has proudly partnered with the Last Prisoner Project, a nonprofit organization dedicated to cannabis criminal justice reform, as part of its social equity and corporate responsibility initiative. AWH has matched the $125,000 total raised in customer donations ahead of the July 2021 goal.

This location development was managed by the Andrus Group, a project management firm bringing retail experience to the cannabis space. AWH and the Andrus Group team partnered with F-R-O-M Architecture to craft a footprint that will bring innovation and education together for a shopping experience focused on wellness and inclusivity. The team adapted a palette of traditional building materials to the site, generating an innovative look. Custom zinc panels soften the transition between the new fluted glass blocks and the historic brick façade while allowing natural light to permeate the interiors. Other custom features, including backlit display cases, security kiosks and a patterned oak floor in the sales area, complement an exquisite branding experience.

Ascend offers online pre-ordering and dispensary pickup. Learn more information about products and place orders at www.letsascend.com.

About Ascend Massachusetts
AWH owns and operates two facilities in Massachusetts – the MassGrow cultivation facility in Athol and one adult-use dispensary in Boston, and is developing two additional adult-use dispensaries in Newton and New Bedford. AWH (on the web at www.letsascend.com) is on a mission to change the way people in Massachusetts think about cannabis while bettering the lives of our employees, customers and communities.

About AWH
AWH is a vertically integrated operator with assets and partners in IllinoisMichiganOhioMassachusetts, and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products.  AWH produces and distributes Ozone branded products. For more information, visit www.awholdings.com.

 

Media Contact
MATTIO Communications
[email protected]

Investor Contact
[email protected]