National cannabis operator Ascend Wellness Holdings Inc. (AWH) Thursday announced it has entered into a definitive agreement to acquire the Maryland assets of Devi Holdings Inc., which owns and operates four licensed dispensaries in the state.
Upon closing of the agreement, AWH will acquire 100% of the membership interests of Devi’s Maryland dispensaries and related real property holding companies for $19 million, $12 million of which will be paid in cash and $7 million, or 5.19 million shares, of Class A Common Stock. The close of the transaction is pending the satisfaction or waiver of customary closing conditions and the receipt of approval for the transfer of the licenses from Maryland regulatory authorities.
It includes Devi’s dispensaries in Aberdeen, Crofton, Ellicott City and Laurel under the names Nature’s Medicines and True Wellness. The agreement will expand AWH’s operations into a seventh state as the company continues to build its footprint in limited license states across the Midwest and East Coast.
There are currently 102 dispensaries in Maryland, approximately one for every 1,600 registered patients. The Maryland Medical Cannabis Commission reported 2021 medical cannabis sales of $600 million, with the 2022 MJBiz Factbook projecting 2022 sales reaching up to $725 million. BDSA previously estimated that, should adult-use sales be permitted to commence, Maryland’s cannabis market will reach $1 billion in annual sales by 2024. On Nov. 8, 2022, Maryland voters approved Question 4, making recreational cannabis legal in the state.