Ascend Wellness Mortgages Five Properties for Retail Expansion

Ascend Wellness Holdings announced on November 3, 2026 that it had closed a series of mortgage loans with CF Bank, providing $10.995 million in gross proceeds against five company-owned properties to support retail expansion and potential acquisitions.

The loans, collectively called the 2026 Mortgage Loans, carry an 8.5% annual interest rate and mature in October 2031. Collateral is located in Chicago and Tinley Park, Illinois; Aberdeen and Ellicott City, Maryland; and Boston, Massachusetts. The structure raises cash against real estate Ascend already owns without issuing new shares, making the financing non-dilutive.

“These financings unlock the value of our owned real estate and provide lower-cost, non-dilutive capital,” said Sam Brill, CEO and Director of Ascend. Brill connected the added financial flexibility to the company’s densification strategy and to potential acquisitions that meet its return thresholds in markets where it sees the greatest opportunity. No acquisition target or committed purchase was identified.

The retail strategy was already expanding Ascend’s footprint before this financing. Ascend reported in its second-quarter results, released August 12, 2026, that it had 55 company-owned and partner retail locations at June 30, 2026, up from 48 at the end of the first quarter. It expected to meet or exceed its year-end target of 60 stores.

Ascend reported an 11.5% sequential increase in second-quarter retail revenue to $92.7 million from $83.1 million. It attributed the growth primarily to expansion in Ohio and contributions from partner locations and new store openings, partly offset by continued pricing and competitive pressure in some markets, including Pennsylvania.

Massachusetts also illustrates the expansion opportunity. Following an April 2026 change in state law that raised the retail-license cap per operator from three to six, Ascend said it intended to pursue additional opportunities there under its densification strategy.

Debt and Cash Flow Frame the Financing

The mortgages add secured borrowing to an existing debt load. At June 30, 2026, before the announced loans, Ascend reported company-defined net debt of $251.8 million. That measure subtracts $67.0 million of cash and cash equivalents from approximately $318.8 million of total debt, net of unamortized deferred financing costs.

The income statement shows why the cost of debt matters. Ascend reported second-quarter operating profit of $5.3 million, compared with $20.8 million of interest expense, which had been $12.1 million in the second quarter of 2025. A $5.7 million income-tax benefit helped reduce the quarterly net loss to $9.8 million.

Cash generation was stronger than the bottom line. Operating activities supplied $22.5 million during the second quarter, and Ascend reported company-defined free cash flow of $19.5 million. That measure deducts $3.0 million of capital-asset additions while excluding $2.8 million related to new-store builds; the cash-flow statement reported total capital-asset additions of $5.8 million.

The mortgage package gives Ascend additional capital for a strategy that was already increasing its store count and retail revenue. Its central financial test is whether that expansion can generate enough cash to fund further buildouts and acquisitions while supporting a larger secured-debt load and the interest costs that come with it.