Ascend Wellness raises $11M in non-dilutive mortgage debt at 8.5%
What's the deal? Ascend Wellness Holdings (CSE: AAWH.U) has closed a series of mortgage loans with CF Bank for gross proceeds of $10,995,000. The debt is secured by company-owned real estate in Illinois, Maryland, and Massachusetts.
The terms: The loans carry interest of 8.5% per annum and mature in October 2031. They are secured by five properties in Chicago and Tinley Park, Illinois; Aberdeen and Ellicott City, Maryland; and Boston, Massachusetts.
What's the endgame? Ascend is a multi-state, vertically integrated cannabis operator with assets in seven states, producing in-house brands including Ozone and Simply Herb. It intends to use the proceeds to expand its retail footprint and pursue acquisitions.
Why non-dilutive matters: By borrowing against real estate it already owns, Ascend raises capital without issuing new shares. "These financings unlock the value of our owned real estate and provide lower-cost, non-dilutive capital," said Sam Brill, chief executive officer and director of Ascend.
The signal: With US cannabis operators facing limited access to traditional banking, mortgaging owned property offers a path to growth capital that doesn't dilute shareholders. Ascend is betting that flexibility on acquisitions in its strongest markets.
Read more: smb.magnoliastatelive.com
Image credit: Generated with Gemini
