Ascend Wellness Holdings Expands Vertically Integrated Footprint in Ohio

Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U) (OTCQX: AAWH), a leading multi-state, vertically integrated cannabis operator, today announced that it has:

• Completed the acquisition of BCCO, LLC (“BCCO”), which operates a medical dispensary in Carroll, Ohio, and 
• Entered into definitive agreement to acquire Ohio Cannabis Clinic, LLC (“OCC”), which operates a medical dispensary in Coshocton, Ohio. 

Management Commentary

“We are thrilled to officially expand our vertically integrated footprint in the rapidly maturing Ohio market,” said Abner Kurtin, CEO and Chairman of AWH. “With adult-use legislation currently under consideration, now is an opportune time to scale our footprint while continuing to provide medical patients with the high-quality products and service they have come to expect from us. By investing in key regions ahead of regulatory events, we have positioned AWH for long-term, sustainable growth in the most attractive markets in the U.S.”  Kurtin added, “We remain focused on disciplined capital allocation and are proud to have completed these acquisitions at multiples that are significantly accretive on a forward-looking basis.”

Current AWH Ohio Footprint 

• Carroll, OH medical dispensary, currently operating under the Ohio Provisions retail brand and is located approximately 25 miles southeast of Columbus. 
• Coshocton, Ohio dispensary, which is pending close and currently operating under the Ohio Cannabis Companybrand and is 77 miles northeast of Columbus.   
• Monroe, OH cultivation facility, which closed in May 2021, and affords the Company the opportunity to expand cultivation capacity. 
• Monroe, OH processing facility, the Company previously entered into an agreement with Marichron Pharma, LLC and intends to submit the transaction for state approval once permitted to under state regulations. 
• Together these assets provide the Company with cultivation, processing, and dispensary assets in the state.  AWH intends to migrate both the Ohio Provisions and the Ohio Cannabis Company brands over to the AWH brand by year-end. Additionally, the Company continues to look to expand to the state imposed 5 dispensary cap limit.

Market & Rationale

• Ohio is the seventh largest state in the U.S. with a population of approximately 11.8 million residents. 
• The medical cannabis program was legalized in 2016 and according to the Ohio Medical Marijuana Control Program, as of July 2021, the market is made up of 53 operating dispensaries and 27 operating cultivators and the program allows for up to 40 processors. 
• In 2020, the legal medical market in Ohio saw $200 million in sales and it is estimated to reach approximately $600 million in 2025¹. 
• Jefferies estimates that 2020 legal and illicit market sales reached approximately $2.7 billion, making Ohio the 3rd largest market that is only legalized for medical².