Ascend Wellness Holdings Initiates Share Buyback Program to Boost Shareholder Value

In a strategic move to bolster shareholder value, Ascend Wellness Holdings, Inc. (AWH) announced the approval of a share buyback program, beginning January 2, 2025. The program, authorised by the company’s board of directors, aims to repurchase up to 5% of the company’s outstanding shares or approximately US$2.25 million worth of Class A common stock.

A Bold Step Towards Shareholder Confidence

The share buyback program highlights Ascend’s commitment to its investors. As of December 24, 2024, AWH had 204,313,808 Class A common shares outstanding. Under the buyback initiative, the company plans to repurchase up to 10,215,690 shares, either on the Canadian Securities Exchange (CSE), OTCQX, or through alternative trading systems.

Sam Brill, Chief Executive Officer of AWH, emphasized the program’s importance:
“With the initiation of this share buyback program, we are taking another meaningful step to continue to create shareholder value. Our prior share repurchase, along with recent open market purchases by board members, underscores our strong confidence in our strategy and commitment to driving returns for our investors.”

Key Details of the Buyback Program

The share buyback program operates under several guidelines, ensuring compliance with legal, regulatory, and market conditions:

• Repurchase Limitations: The program caps purchases at the lesser of 5% of outstanding shares or US$2.25 million.
• Execution Partner: Purchases will be managed by ATB Securities Inc.
• Market Conditions: Timing and price of purchases will depend on market conditions, business considerations, and CSE rules.
• Duration: The program runs until January 1, 2026, with flexibility for suspension, termination, or modification as needed.
• Cancellation Policy: Any repurchased shares will be immediately cancelled.

This program follows Ascend’s earlier share repurchase initiatives, further cementing its proactive approach to enhancing investor confidence and share value.

Board Confidence and Strategic Vision

Ascend’s leadership and board have demonstrated ongoing confidence in the company’s trajectory. Recent open-market purchases by board members complement the buyback initiative, signalling robust internal belief in Ascend’s long-term growth strategy.

Brill expressed optimism about the coming year:
“With our strong foundation and the impact of our ongoing initiatives, we are excited about the opportunities the new year will bring.”

Such statements resonate with shareholders eager to see tangible benefits from a focused growth strategy. The buyback program aligns with this vision, showing not just confidence but a tactical allocation of resources to deliver measurable results.

What This Means for Investors

A share buyback program often signals to investors that a company considers its stock undervalued, making it an appealing option for market participants. By reducing the number of outstanding shares, the initiative aims to increase the value of remaining shares and improve earnings per share (EPS).

For investors, this development may suggest:

• Increased potential for share price appreciation.
• A reaffirmation of the company’s strong financial position.
• A clear message that Ascend is prioritising shareholder interests.

Additionally, the cancellation of repurchased shares ensures that the benefits of the program are fully realised, avoiding dilution of shareholder value.

Market Reaction and Future Outlook

While the announcement of a buyback program is typically received positively by the market, its success depends on execution and broader market conditions. Ascend’s financial discipline and commitment to transparency will be crucial as the program unfolds over the next year.

Investors will watch closely to gauge:

• The pace and scale of the share repurchases.
• The impact on share price and market perception.
• Any further statements or actions by the company to complement the program.

Ascend Wellness Holdings has positioned itself to leverage the buyback initiative as part of a broader effort to strengthen its market presence and deliver returns to its shareholders.