Cannabis multistate operator Ascend Wellness is planning to raise $7 million in a private placement offering.
According to terms of the equity financing, the New York-based MSO intends to sell 9,859,155 shares of Class A common stock for $0.71 per share to an existing debt and equity investor.
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Ascend intends to use the proceeds for potential acquisitions of debt or equity in certain marijuana companies or for taking over assets as part of its ongoing rollup strategy, according to a news release.
“We are seeing a lot of attractive acquisition opportunities that Ascend believes could be significantly accretive,” CEO John Hartmann said in a statement.
“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.”
In April, Ascend closed a $19 million cash-and-stock deal
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