Marijuana MSO Ascend appoints new CEO, CFO in leadership shake-up

Two key executives are out at Ascend Wellness Holdings as the New York-based marijuana multistate operator struggles with declining revenue and increased losses.

Samuel Brill, the lead independent director on the company’s board, will replace John Hartmann as the vertically integrated company’s CEO, according to a Tuesday news release.

No reason was given for Hartmann’s ouster, but he was appointed CEO in May 2023 in a similar leadership shake-up.

Ascend said in its second-quarter earnings report earlier this month that net loss had grown to $21.8 million compared with net income of $841,000.

The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $28.3 million.

That was a 33% bump year-over-year but a decrease of 12.7% from the previous quarter.

Changes meant to ‘realign strategy’

Mark Cassebaum was terminated as chief financial officer and is being replaced by Roman Nemchenko, who most recently served as Ascend’s chief accounting officer.

Ascend co-founder and director Francis Perullo was appointed president and “will focus on driving operational excellence across all business segments,” the release noted.

Abner Kurtin, executive chair of Ascend’s board, said the new leadership team will guide the company through its next phase of growth.

The leadership changes will help the company “realign our strategy and address recent performance challenges,” Kurtin said in a statement.

“Our focus will be on improving our operational performance and continuing to deliver high-quality products and services to our customers,” he added.

Brill, Nemchenko have played key roles

Brill, who helped guide Ascend through a refinancing deal in July, has served on the company’s board since May 2023.

He also is chair of medical product manufacturer and distributor Invacare Holdings Corp. and served as chief investment officer of Seventh Avenue Investments, where he managed all aspects of the private equity business.

As chief accounting officer, Nemchenko played a critical role in Ascend’s initial public offering in 2021, according to the release.

He has held leadership roles at fellow marijuana MSO Acreage Holdings as well as Oscar Insurance and Fortress Investment Group.

Before being installed as Ascend’s president, Perullo was the executive vice president of corporate affairs and served on the company’s board.

He spent his first three years as the company’s chief strategy officer, spearheading its retail expansion strategy.

Ascend shares trade as AAWH.U on the Canadian Securities Exchange and as AAWH on the over-the-counter markets.