By Shariq Khan
Could 4 (Reuters) – Ascend Wellness Holdings (AWH) Inc AAWHu.CD surged about 22% in its Canadian inventory market debut on Tuesday to fetch a market worth of $1.6 billion, the most recent pot producer to money in on sturdy investor demand for U.S. marijuana firms.
Shares of AWH, which harvests hashish, makes completed merchandise and operates retail shops, closed at $9.75 on their first day of buying and selling, in contrast with the preliminary public providing value (IPO) of $8.
A number of U.S. pot corporations have gone public in latest months as expectations rise that Democratic lawmakers will quickly move laws granting the trade entry to federal banking, a transfer that may enable extra institutional buyers to take part within the sector.
“I see non-public fairness being the large participant on this trade over the following few years,” AWH founder and Chief Government Abner Kurtin mentioned in an interview.
Two individuals acquainted with the matter mentioned AWH had held preliminary talks to be taken over by bigger U.S. pot producer Trulieve Hashish Corp TRUL.CD within the months main as much as the IPO.
However the talks might have ended as a result of AWH determined to pursue the IPO, mentioned one of many individuals, who declined to be named as a result of the talks have been confidential.
Kurtin refused to touch upon any ongoing discussions however mentioned AWH stays open to merging with one other U.S. multi-state operator that will be a “strategic match”, similar to Trulieve or smaller operator Terrascend Corp TER.CD and privately-held Holistic Industries.
“We’re open to being bought if that’s the greatest path ahead,” he mentioned.
Trulieve and Holistic couldn’t be instantly reached for remark. Terrascend Chairman Jason Wild declined to remark.
AWH, which presently operates in 5 U.S. states, posted practically $144 million in income final yr and was worthwhile on an adjusted gross foundation, a regulatory submitting confirmed.
(Reporting by Arunima Kumar in Bengaluru; Modifying by Aditya Soni)
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