Cannabis Co Ascend Wellness Holdings Reports 22% QoQ Growth In Q1 Revenue, Provides Revenue Guidance For 2021

Vertically integrated cannabis company Ascend Wellness Holdings, Inc. AAWH reported Tuesday it had generated $66.1 million in the first quarter of 2021, representing a 21.8% sequential growth.

The New York-based company disclosed that total retail revenue hit $45.5 million in the first three months of the fiscal year, up by 20% quarter-over-quarter. Total transactions increased 27.9% sequentially to roughly 411,000.

AWH operates 14 dispensaries, including shops in Fairview Heights, Illinois and Grand Rapids, Michigan, which It launched during the first quarter. In April the company opened a 16,000-square foot pot supermarket in downtown Boston Massachusetts.

Abner Kurtin, AWH's founder and CEO, said the positive quarterly results reflect the company's strong fundamentals.

"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," he added.

Here's a breakdown of what the first-quarter earnings report showed:

• Gross wholesale revenue amounted to $30.3 million, representing a 38% sequential increase.
• Adjusted EBITDA, a non-GAAP financial measure, came in positive at $15.8 million, up by 57.8% quarter-over-quarter.
• The adjusted EBITDA margin, a non-GAAP financial measure, was 23.9%, reflecting a 550 basis point increase versus the fourth quarter of last year.
• Net loss increased by 579% sequentially to $48.2 million, including a $36.5 million one-time non-cash charge.
• Total general and administrative expenses totaled $25.1 million, accounting for 38% of revenue.
• As of March 31, the company had $62.6 million in cash and cash equivalents.
• AWH disclosed it expects to generate between $320 million and $340 million in 2021.

Raising $80M Via IPO, Debut On CSE, OTCQX Best Market, New Appointment

In April, the company announced it's going public through an initial public offering of some 10 million shares of its Class A common stock at $8 per share.

The company debuted on the CSE in early May, and it expects its shares to be quoted on the OTCQX Best Market.

In addition, Joe Hinrich, former president of automotive at Ford Motor Company agreed to join AWH's board of directors.

"Adding a distinguished leader of a Fortune 500 company to our Board represents a milestone for Ascend and the industry," Kurtin commented.

Photo by Rick Proctor on Unsplash