TDR’s three key takeaways about Ascend Wellness and the growth of Ohio’s cannabis market:
- Ascend Wellness’ strategic location of pharmacies throughout Ohio is a key component of the company’s market leadership strategy.
- “We expect to exceed 50 pharmacies by the end of next year,” John Hartman asserted, hinting at strong growth plans.
- Ascend Wellness expects to grow in other key states, particularly Pennsylvania.
Ascend Wellness Holdings (CSE: AAWH.U, OTCQX: AAWH), a multi-state cannabis company, is strategically positioned to emerge as a cannabis company in the Ohio cannabis market. Ascend Wellness’ commitment to Ohio is backed by successful transitions in New Jersey and Maryland. Reflecting on these experiences, John Hartman said in an interview on the Trade to Black podcast that “medical cannabis sales at these dispensaries have grown by an impressive 2-2.5x from previous run rates,” highlighting the company’s ability to adapt and succeed in the new adult-use market. With an adult population of nearly 9 million, Ohio is poised to become a big market for adult-use cannabis. The state’s strong medical cannabis market, which generated nearly $500 million in sales last year, sets a promising precedent. This track record provides a solid foundation for Ascend’s optimistic forecasts, in which the company expects similar growth dynamics in Ohio.
Ascend Wellness’ strategic location of pharmacies throughout Ohio is a key component of the company’s market leadership strategy. The company operates five pharmacies in major urban, suburban and rural areas to ensure broad market reach. One standout location is its flagship store in downtown Cincinnati, adjacent to the Hard Rock Hotel, Casino and Convention Center. “It’s a great location where our team found and built a beautiful store,” Hartman said, emphasizing the strategic importance of the prime location.
As for future expansion, Ascend is prepared to adapt to any regulatory changes that may allow for additional licenses. “We are in the process of citing additional real estate in the event that the expectation of additional licenses materializes as expected,” Hartman said, indicating the company’s readiness to expand operations depending on favorable regulatory developments.
While Ascend’s growing capacity in Ohio is limited at this time, the company has strategic supply agreements in place to ensure it can provide a strong product to dispensaries. “Our team has secured exciting supply agreements to complement our growing in Ohio,” Hartman explains. This approach allows Ascend to meet customer demand while effectively balancing its wholesale and retail operations.
Ascend’s strategy will vary by market, with some states, such as New Jersey and Illinois, having a thriving wholesale operation. “In Maryland and Ohio, we’re going to find the right balance between investing in cultivation and production and what we can get on the open market,” Hartman added, emphasizing the company’s approach will be tailored to each market’s unique dynamics.
Beyond Ohio, Ascend Wellness is looking to grow in other key states, particularly Pennsylvania. Currently operating four dispensaries and building one more, Ascend is preparing for the possibility of adult-use cannabis legalization in Pennsylvania. “We’re excited about the stories we’re hearing out of Pennsylvania,” Hartman said, citing the governor’s support for adult-use cannabis as a positive sign for future market opportunities.
Ascend’s broader expansion strategy includes plans to expand its overall footprint by 50% by the end of next year, and increase its pharmacies from 36 to more than 50. The ambitious goal underscores the company’s commitment to strengthening its presence in existing markets and exploring new opportunities. “We expect to be over 50 by the end of next year,” Hartman asserted, hinting at strong growth plans. Want to stay up to date on the latest in Cannabis, AI, Small Caps and Cryptocurrencies? Subscribe to the Daily Baked in newsletter!
