Mr. Frank Perullo reports

AWH ANNOUNCES Q1 2023 FINANCIAL RESULTS

Ascend Wellness Holdings Inc. has released its financial results for the three months ended March 31, 2023. Financial results are reported in accordance with U.S. generally accepted accounting principles, and all currency is in U.S. dollars.

First quarter 2023 financial highlights:

• Gross revenue increased 39.5 per cent year over year and 4.9 per cent quarter over quarter to $141.2-million.
• Net revenue, which excludes intercompany sale of wholesale products, increased 34.2 per cent year over year and 1.9 per cent quarter over quarter to $114.2-million.
• Retail revenue increased 30.7 per cent year over year but decreased 1.8 per cent quarter over quarter to $82.7-million.
• Gross wholesale revenue increased 54.0 per cent year over year and 16.3 per cent quarter over quarter to $58.4-million. Wholesale, net of intercompany sales, increased 44.2 per cent year over year and 13.0 per cent quarter over quarter to $31.4-million.
• Net loss of $18.5-million during the quarter represented an improvement compared with a net loss of $27.8-million in Q1 2022 and $15.1-million in fourth quarter 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $23.3-million, representing a 20.4-per-cent margin. Adjusted EBITDA increased 42 per cent, and margins expanded 118 basis points year over year. Margins declined 473 basis points quarter over quarter.
• As of March 31, 2023, cash and cash equivalents were $73.3-million, and net debt (2) was $250.8-million.

Business highlights:

• During the quarter, the company opened outlet dispensaries in New Bedford, Mass., and Grand Rapids, Mich. Subsequent to the quarter, the company opened an outlet dispensary in Tinley Park, Ill. Including the Scranton, Pa., and Wayne, Pa., dispensaries, the company operates five outlet dispensaries across the business.
• Subsequent to the quarter, the company closed the acquisition of four dispensaries in Maryland from Devi Holdings Inc. This marks Ascend Wellness's expansion to the seventh state with a total of 31 operating dispensaries across all seven states.
• During the quarter, the company had the first harvest at its Smithfield, Pa., cultivation facility and made the first sale of product produced from that facility to its two retail dispensaries in Pennsylvania.
• Subsequent to the quarter, the company announced it was appointing John Hartmann as permanent chief executive officer of the company, effective May 15, 2023.

(1) Adjusted EBITDA/margin and adjusted gross profit/margin are non-generally accepted accounting principle financial measures.

(2) Total debt less cash and cash equivalents less unamortized deferred financing costs.

Management commentary

"I am proud of the team for delivering record revenue and the first quarter of positive cash from operations in the quarter, despite the competitive industry dynamics," said Abner Kurtin, executive chairman. "Additionally, as announced in a release published earlier today, I look forward to welcoming John Hartmann, our new [chief executive officer], when he joins Ascend on May 15 as Ascend transitions from a founder-led management team to a professional-led organization."

Frank Perullo, interim co-CEO and president, commented: "During the quarter, our team opened two outlet dispensaries to great success. We are happy with the traction the outlet model is generating in select markets. Subsequent to the quarter, we were also pleased to close on the transaction of four dispensaries in Maryland, and are working hard to integrate these assets and get ready to commence adult-use sales at the start of the program, expected in July. We were proud to generate nearly $6-million in cash from operations during the quarter. Ascend's balance sheet remains one of our top priorities, and we are laser focused on cash generation and committed to generating cash from operations for the full-year 2023."

Conference call and webcast

Ascend Wellness will host a conference call on May 9, 2023, at 5 p.m. ET, to discuss its financial results for the quarter ended March 31, 2023. The conference call will be available by dialling 888-390-0605. A live audio webcast of the call will also be available in the investor relations section of Ascend Wellness's website and will be archived for replay.

About Ascend Wellness Holdings Inc.

Ascend Wellness is a vertically integrated multistate cannabis operator with licences and assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, Pennsylvania and Maryland. Ascend Wellness owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. Ascend Wellness produces and distributes its in-house Simply Herb, Ozone and Ozone Reserve branded products.

Additional information relating to the company's first quarter 2023 results is available in the investor relations section of Ascend Wellness's website, the Securities and Exchange Commission's EDGAR, and Canada's SEDAR.

We seek Safe Harbor.