Ascend Wellness Holdings Declares Senior Debt Funding of US$210 Million
Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH), a prominent multi-state, wholly owned cannabis cultivator, said today that it has entered into a US$210 million Senior Secured Term Loan with lead manager Seaport Global Securities LLC.
Ascend Wellness Holdings, Inc.
Ascend Wellness Holdings is a company that focuses on health and wellness with assets in Michigan, Illinois, Massachusetts, Ohio, and New Jersey.
AWH owns and runs cutting-edge cultivation facilities where award-winning strains are grown and a carefully selected assortment of products is produced. Ozone branded goods are manufactured and distributed by AWH.
Details of Ascend Wellness Holdings Senior Debt Funding
The proceeds will be used for the following purposes:
- Repay most of the existing debt of the Company at close to zero interest rates, which excludes outstanding acquisition payments of nearly US$12 million
- To finance the company’s plan of investing into MedMen NY, Inc.
- Lay the foundation for the next opportunities of growth and further acquisition
This Term Loan adds to the company’s already excellent financial position. The Company already possessed $104.2 million in cash and equivalents at the end of the second quarter of 2021, prior to completing the Term Loan.
Abner Kurtin, the Founder and CEO of AWH said, “I am thrilled to secure this non-dilutive financing which both reduces our overall cost of capital and will fuel the growth of our business as we invest in scaling our strategic footprint.”
He added that in the Term Loan, there was a lot of interest and a lot of involvement shown. Seaport Global Securities led the marketing efforts, which presented a greater mix of investment firms, family offices, and hedge funds.
The management said that they’re delighted to welcome this new group of stakeholders into the ownership structure through the senior debt financing, and hope to continue to work with each of these investors in future debt and equity financings.
Ascend Wellness is working hard to develop one of the most comprehensive networks of retail outlets and production facilities in the best markets.
Abner also mentioned, “We are well positioned to pursue our growth initiatives to take advantage of the huge market potential ahead and generate excellent value for our shareholders, thanks to our solid balance sheet and track record.”
This Term Loan will have an annual interest rate of 9.5 percent, paid quarterly in arrears, and will mature on August 27, 2025. A first lien on all Company assets secures the Term Loan. Ascend Wellness has the flexibility to extend the facility to US$65 million if requested, subject to certain agreement terms.
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