Ascend Wellness Strengthens Position in Massachusetts Cannabis Market

During the recent Benzinga Cannabis Capital Conference, Rebecca Koar, executive vice president of investor relations & strategy at Ascend Wellness Holdings, highlighted significant developments in the company’s operations, particularly in Massachusetts.

Enhancing Supply Capabilities

Koar noted that Ascend’s Simply Herbal brand has emerged as the top brand in the state, a notable achievement given that it was launched just two years ago. “Our Simply Herbal brand has become the number one brand,” Koar stated, attributing the success to the company’s strategic placement of three dispensaries and a new outlet in New Bedford that opened last year.

To support increasing demand, Ascend Wellness has expanded its cultivation capabilities. “We previously had about 42,000 square feet of cultivation in Massachusetts,” Koar said. “We just announced an acquisition a couple of months ago in Amesbury, Massachusetts, for a second cultivation facility.” This new facility adds 15,000 square feet of additional canopy and includes a kitchen, enabling the company to introduce gummies.

Financial Health and Strategic Moves

Ascend Wellness has reported a strong financial outlook, with positive cash flow from operations and free cash flow for 2023. “We announced positive cash flow from operations for the entire year and positive free cash flow,” said Koar, underlining the company’s financial stability since its founding in 2018. This financial health positions Ascend well for upcoming financial maneuvers, including a planned refinancing and debt repayment strategy for next year.

Preparing for Expansion in New Markets

With new states legalizing adult-use cannabis, Ascend Wellness is preparing to enter these emerging markets while strengthening its presence in existing ones. Koar shared that Ohio and Pennsylvania are potential new markets, with Pennsylvania’s progress hinging on legislative developments. “We’re constantly looking at what states we want to be in,” she said.

Networking and Learning Opportunities at the Conference

Koar also discussed the importance of the conference for networking and learning from industry peers. “Our biggest priority was meeting with our sell-side analysts this morning,” she revealed.

The interactions included discussions with buy-side investors and panel participation by Ascend’s CEO, which Koar described as very successful. Through these engagements, the company aims to share and gather valuable practices within the industry.

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