AWH To Secure $7M Via Private Placement

Ascend Wellness Holdings, Inc. AAWH AAWH announced that the company intends to complete a private placement offering, which will raise an aggregate of $7 million in equity financing. Under the terms of the private placement, the company intends to sell an aggregate of 9.9 million shares of class A common stock to a large existing debt and equity investor at a price of $0.71 per share. The company intends to use the proceeds from the private placement to pursue potential acquisitions of debt or equity in, or the assets of, certain companies in the cannabis industry consistent with the company's current business strategy.

"We are seeing a lot of attractive acquisition opportunities that Ascend believes could be significantly accretive," stated John Hartmann, the CEO of Ascend Wellness. "We are pleased to raise this equity from an existing debt and equity investor and appreciate their continued support of Ascend and our acquisition strategy. The private placement strongly positions Ascend to act strategically and our decision to issue equity at these prices reflects our existing investor's utmost confidence in Ascend and our potential acquisition strategy."

The shares will be offered and sold in a private placement pursuant to the exemption from registration provided by rule 506(b) of regulation D under the Securities Act of 1933, as amended. The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold absent registration or an applicable exemption from such registration requirements.

Photo by Thiago Patriota on Unsplash

Related News

How Are Cannabis Industry Titans Driving Profits As Consumer Spending Falls?

La Mota Attorney Resigns From Oregon Cannabis Association, Four New CEOs & More Industry Appointments