New York-based marijuana multistate operator Ascend Wellness announced an agreement to acquire the Maryland assets of Devi Holdings in a cash-and-stock deal worth $19 million.
According to a news release, Ascend will acquire 100% interest of Devi’s dispensaries and related property in Maryland for $19 million – $12 million in cash and $7 million in Class A Common Stock consisting of 5.19 million shares.
The deal, which includes $3 million of real estate holdings, will be accretive to Ascend earnings with Devi posting an annual run rate of $17 million in sales, Dan Neville, Ascend’s chief financial officer and interim co-CEO, said in a statement.
Devi owns and operates four licensed dispensaries in Aberdeen, Crofton, Ellicott City and Laurel under the Nature’s Medicines and True Wellness brands.
The purchase will expand Ascend’s operations to seven states across the Midwest and East Coast while positioning the MSO to benefit when Maryland launches recreational marijuana sales, according to the release.
Maryland voters in November overwhelmingly approved legalizing adult-use marijuana, laying the groundwork for a recreational cannabis market expected to generate sales approaching $1 billion within a few years after launch.
Ascend shares trade as AAWH on the over-the-counter markets.
News of the acquisition on Friday pushed Ascend shares up 11.5% in late afternoon trading to $1.31 and a market cap of about $247 million.