Marijuana MSO Ascend closes on $50 million private placement

Marijuana multistate operator Ascend Wellness Holdings has closed a $50 million private placement of senior secured notes.

The notes, issued at 97.5% of face value, are part of a $235 million debt offering completed in July and carry an interest rate of 12.75%, according to a news release.

The notes will mature on July 16, 2029.

The New York-headquartered MSO’s strong balance sheet positions the company to take advantage of market conditions and “execute on our densification strategy, while continuing to deliver value to all stakeholders,” CEO Sam Brill said in a statement.

In January, Brill said Ascend’s plan includes opening 20 new stores, which would increase its retail footprint by about 50%.

“This refinancing was always part of our long-term strategic plan, and we’re very pleased with the strong demand and support from our lenders,” he said in a statement at the time.

“Their continued confidence in our team and plan underscores the long-term value of our business and the discipline with which we manage our operations.”

Ascend operates nearly 40 stores in seven states, according to the company website.