Welcome to the Cannabis Investing Newsletter Forum. This is for the cannabis stocks forum & discussion. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of, and analysis of, cannabis stocks. – D. H. Taylor
Ascend Wellness AAWH stock is a cannabis stock I think has a lot of potential that is under-appreciated. However, this under-appreciation for cannabis stocks is the same across the board regardless of which cannabis stock you are viewing. I wanted to update the AAWH stock forecast and get my thoughts out there for Ascend Wellness in the future. As it is, we are likely to be seeing movement on the Senate version of cannabis federal legalization before August 6th, and that may bring in some exciting investing activity into the sector.
In the meantime, for now Ascend Wellness is continually building up its portfolio of assets to include concluding the settlement with MedMen and, they will incorporate the four dispensaries moving forward. There are currently 20 total dispensaries in their portfolio. They should have about 35 very soon as they continue build-outs, acquire dispensaries, and plan more. This is a nearly doubling of dispensary count for Ascend Wellness, and AAWH will see long term growth from this over the years.
Another excellent writeup DH. AAWH is my 4th largest holding behind VRNOF,AYRWF, and TRSSF. You might notice the common thread of strong holdings in my home state of NJ. I believe NJ will be the key growth engine over the next few years for AAWH and since it is MUCH smaller then my other 3 top holdings, the NJ effect will be magnified. Trading at 1x 22 revs, a very cheap EV/EBITDA. God a great deal to gain entrance into NY which will be the next huge growth engine after NJ. IL and Ma. will continue to be key producers ongoing as well.
The market is not paying attention to these numbers at all. While the drop in share price is painful for all those who got in earlier, when these stocks are realized for what they will be, the upside will far outpace an investment in the broader market over the same period of time. Trust the process.
Probably is a great bargain. But, I am just sitting down to write an article on Stagflation and the broader markets. We may be in for an overall bumpy ride in the near term. The Dow is down about 800 last I checked. Still, the yields will play out over a longer period of time. If you can shrug the bumps, and look long into the future, you will do well overall.
Abner Kurtin CEO,Chairman and Founder is buying shares and taking all his 2022 compensation in shares seems to have some Faith putting his money where his mouth is IMHO
AWH Announces Share Purchase by AGP, an Entity Owned by AWH Chief Executive Officer, Chairman, and Founder, Abner Kurtin and President and Co-Founder, Frank Perullo
NEW YORK, July 5, 2022 /PRNewswire/ - Ascend Wellness Holdings, Inc (AAWH) ("AWH", "Ascend", or the "Company") (CSE: AAWH.U) , a multi-state, vertically integrated cannabis operator, announced that on July 1st AGP Partners, LLC ("AGP"), purchased 50,000 of Class A Common Shares in the open market for $2.05 per share followed by the purchase of 1,100 Class A Common shares for $1.90 per share on July 4th. AGP is an entity through which Abner Kurtin and Frank Perullo invest in Ascend.
Earlier this year, Abner Kurtin also elected to take all of his 2022 compensation, with the exception of certain healthcare and other benefits, as common stock in AWH.
"We are extremely confident in the trajectory of AWH," said Abner Kurtin, Chief Executive Officer, Chairman, and Founder of Ascend. "We are using this market dislocation as an opportunity to make an additional purchase of stock. The lack of capital in the sector remains a hindrance, but we believe that this is a temporary burden that will ultimately translate into more justified valuations. In the meantime, we are focused on executing our exciting growth initiatives while delivering strong financial performance."
AWH Continues Expansion with Agreement to Acquire Four Maryland Dispensaries
|
AWH Continues Expansion with Agreement to Acquire Four Maryland Dispensaries
Enters into a definitive agreement to acquire four operating dispensaries in Maryland –
– Enters operations in its seventh state –
NEW YORK, Jan. 25, 2023 /CNW/ - Ascend Wellness Holdings, Inc. (AAWH) ("AWH" or the "Company") (CSE: AAWH.U) , a multi-state, vertically-integrated cannabis operator focused on bettering lives through cannabis, announced that today it entered into a definitive agreement (the "Agreement") to acquire the Maryland assets of Devi Holdings, Inc. ("Devi"), which owns and operates four licensed dispensaries in Aberdeen, Crofton, Ellicott City, and Laurel under the names Nature's Medicines and True Wellness. The Agreement will expand AWH's operations into a seventh state as the company continues to build its footprint in limited license states across the Midwest and East Coast.
"Maryland is an ideal state to expand our footprint – home to more than six million people, a mature medical cannabis program, and voter-approved support to create an adult-use cannabis market," said Abner Kurtin, Executive Chairman and Founder of AWH. "This Agreement reflects our strategy of entering limited-license, late-stage medical markets with an anticipated adult-use cannabis market launch. This approach has made AWH a leader in New Jersey and Illinois, and we are following the same playbook in Ohio, Pennsylvania, and now, Maryland."
Transaction Details
Upon closing of the Agreement, AWH will acquire 100% of the membership interests of Devi's Maryland dispensaries and related real property holding companies for $19 million, $12 million of which will be paid in cash and $7 million, or 5.19 million shares, of Class A Common Stock. The close of the transaction is pending the satisfaction or waiver of customary closing conditions and the receipt of approval for the transfer of the licenses from Maryland regulatory authorities.
"This transaction represents an opportunity to allocate capital to a business that is accretive based on run rate medical earnings, and we expect it to be significantly accretive with conservative adult-use sales assumptions. We take issuing equity very seriously and considered this transaction worthy given the attractive valuation, existing run rate sales of $17 million, and $3 million of real estate included in the transaction," said Dan Neville, CFO and interim co-CEO of AWH. "We appreciate Seaport Global's support as our financial advisor on this transaction and look forward to closing and welcoming patients in Maryland."
Maryland Market
There are currently 102 dispensaries in Maryland, approximately one for every 1,600 registered patients. The Maryland Medical Cannabis Commission reported 2021 medical cannabis sales of $600 million, with the 2022 MJBiz Factbook projecting 2022 sales reaching up to $725 million. BDSA previously estimated that, should adult-use sales be permitted to commence, Maryland's cannabis market will reach $1 billion in annual sales by 2024. On November 8, 2022, Maryland voters approved Question 4, making recreational cannabis legal in the state.
About AWH:
AWH is a vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. 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 its in-house Ozone, Ozone Reserve, and Simply Herb branded products. For more information, visit http://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 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 analyses 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 Annual Report on Form 10-K for the year ended December 31, 2021, 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.
View original content: https://www.prnewswire.com/news-releases/awh-continues-expansion-with-agreement-to-acquire-four-maryland-dispensaries-301730866.html
SOURCE Ascend Wellness Holdings, Inc. (AAWH)
For me, dispensaries are key. They are not a be-all/end-all. But, without a dispensary network, you do not have the ability to get your product into the hands of consumers. That being said, a dispensary that only carries a small, in-house brand catalog is not the best strategy either. I think you need to have a few brands such as Lowell inside a dispensary network that allows for expanded consumer base and product catalog.
Moving in to new states and getting dispensaries are long term key moves as far as I am looking for.
One day, this stock price will be where it needs to be:
Leave a reply
