New York-based Ascend Wellness Holdings Inc. (CSE: AAWH.U) (OTCQX: AAWH) posted a $16.8 million loss for the third quarter of 2022, even as it expanded its footprint through several Midwest markets and launched recreational sales in New Jersey.
Ascend so far has lost $65.8 million for the year, as of Sept. 30, but that’s down from 2021, when Ascend posted a $106 million loss for the first nine months.
Executive Chairman Abner Kurtin – who made headlines for assault charges filed and then dropped against him in Florida this past quarter – touted the company’s increased revenue and growth in both retail and wholesale markets, but acknowledged “challenging macro- and microenvironments” in the national cannabis industry.
Net revenue increased 14.1% from the second quarter to $111.2 million – for a total of net revenue year-to-date of $293.8 million – primarily due to “an increase in third-party wholesale sales, the conversion of retail stores to adult-use, and new store openings,” the company said in a news release.
Highlights of the company’s expansion include:
- In New Jersey, Ascend began recreational cannabis sales at one store, opened a second medical-only dispensary in another city, and launched operations at a new manufacturing facility.
- In Ohio, it acquired Ohio Patient Access, which will allow it to open another trio of medical dispensaries in the state, for a total of five, the maximum allowed for any business.
- In Illinois, Ascend also acquired two more cannabis stores which are yet to be fully built out, but which will bring its retail presence in the state to 10 shops, again hitting another state cap on retail outlets.
After the quarter came to an end, Ascend continued construction of a new 6,000-square-foot cultivation facility in Pennsylvania, which it hopes will be operational by the end of the year. It also opened a so-called “outlet” dispensary in Scranton.