Ascend Wellness Holdings Announces Share Buyback Program
Rhea-AI Summary
Ascend Wellness Holdings (AAWH) has announced a new share buyback program starting January 2, 2025. The company received authorization to repurchase up to 10,215,690 shares (approximately 5% of outstanding common shares) or US$2.25 million worth of common shares, whichever is lesser. The buyback program will run through January 1, 2026, with purchases to be made on the CSE, OTCQX, or alternative trading systems through ATB Securities Inc.
As of December 24, 2024, AAWH had 204,313,808 outstanding common shares. CEO Sam Brill emphasized that this initiative, along with recent board member purchases, demonstrates confidence in the company's strategy and commitment to shareholder value. All purchased shares will be cancelled, and the program can be modified or terminated at any time.
Positive
- Authorization to repurchase up to 5% of outstanding shares
- Board members have recently made open market purchases, showing insider confidence
- Program demonstrates commitment to returning value to shareholders
Negative
- buyback amount of only US$2.25 million
- No obligation to complete the share repurchases
News Market Reaction
On the day this news was published, AAWH gained 2.86%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"With the initiation of this share buyback program, we are taking another meaningful step to continue to create shareholder value," said Sam Brill, Chief Executive Officer. "Our prior share repurchase, together with the recent open market purchases by members of our board of directors, demonstrate our strong confidence in our strategy and our commitment to driving returns for our investors. With our strong foundation and the impact of our ongoing initiatives, we are excited about the opportunities the new year will bring."
Common Shares may be purchased on the Canadian Securities Exchange ("CSE"), the OTCQX, or alternative trading systems, subject to applicable legal, regulatory and contractual requirements. All purchases made will be through the selected purchasing member, ATB Securities Inc. The total number of Common Shares purchased, timing of purchases, and share price are dependent upon market conditions and business considerations, any applicable securities law requirements, CSE rules and any determination of best use of cash available at the time. Any Common Shares purchased will be cancelled. The Buyback program will expire on January 1, 2026, and may be suspended, terminated or modified at any time for any reason. While the Company intends to proceed with the Buyback Program, it is under no obligation to purchase any Common Shares for the duration of the Buyback Program.
About Ascend Wellness Holdings, Inc.
AWH is a vertically integrated operator with assets in
Cautionary Note Regarding Forward-Looking Information
This news release includes "forward-looking information" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking statements" within the meaning of applicable Canadian securities legislation (together, "forward-looking statements"), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as "expects", "does not expect", "is expected", "continue", "will", "anticipates", "plans", "estimates", "anticipates", "does not anticipate", "believes" and "intends" or similar expressions are intended to identify forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release relating to the proposed NCIB, the commencement date thereof, the number of Common Shares, if any, that may be purchased pursuant to the NCIB, improving the Company's profitability, maximizing the Company's asset efficiency, and enhancing the Company's cash flow generation to drive substantial shareholder value are forward-looking statements. We caution investors that any such forward-looking statements are based on the Company's current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience of the Company and perception of historical trends, current conditions, and expected future developments and other factors management believes are appropriate.
Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Such factors include, among others, the risks and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's other reports and filings with the applicable Canadian securities regulators on its profile on SEDAR+ at www.sedarplus.ca and with the SEC on its profile on EDGAR at www.sec.gov.
In respect of the forward-looking statements, the Company has provided such statements and information in reliance on certain assumptions that the Company believes are reasonable at this time. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties, should not place undue reliance upon such forward-looking statements and no assurance can be given that such events will occur in the disclosed time frames or at all. Risks, uncertainties and other factors involved with forward-looking statements could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements.
Any forward-looking statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws. The Canadian Securities Exchange has not reviewed, approved, or disapproved the content of this news release.
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SOURCE Ascend Wellness Holdings, Inc.
FAQ
How many shares can AAWH repurchase under the new buyback program?
When does AAWH's 2025 share buyback program start and end?
Which exchanges will AAWH purchase shares from during the buyback?
What happens to the AAWH shares purchased during the buyback?
How many outstanding common shares does AAWH have as of December 2024?
