Ascend Wellness Secures $9.3M Mortgage in Ohio

The cannabis industry is often marked by complex financial hurdles, especially when it comes to securing traditional funding. However, a recent move by Ascend Wellness Holdings Inc. (AWH) signals a noteworthy shift. The multistate, vertically integrated cannabis operator has successfully closed a $9.3 million mortgage financing deal for three of its properties in Ohio. This development is not just a win for AWH but also offers a glimpse into the evolving financial landscape for cannabis and hemp businesses nationwide.

This blog post will break down the details of this significant transaction. We'll explore what this means for Ascend Wellness, the broader implications for the Ohio cannabis market, and how deals like this are paving the way for more conventional financing in the industry. For investors and entrepreneurs, understanding these financial maneuvers is key to navigating the opportunities and challenges within the hemp and CBD space.

A Closer Look at the Deal

On September 30, 2025, Ascend Wellness Holdings announced the closure of a secured financing transaction totaling $9,345,000 with CF Bank. The deal, which officially closed on September 12, 2025, involves mortgages on three AWH-owned properties located in Cincinnati, Sandusky, and Piqua, Ohio.

According to the press release published by Cannabis Business Times, the loan has several favorable terms that make it particularly interesting for industry observers (link):

• Interest Rate: The mortgage carries a competitive interest rate of 8.5% per annum.
• Maturity Date: The loan is set to mature in September 2030, giving AWH a five-year term.
• Loan Type: This is a non-dilutive financing transaction, meaning AWH secured capital without having to issue new equity and dilute the ownership of existing shareholders.

Securing a bank loan with an interest rate in the single digits is a significant achievement for any cannabis-related company. Due to federal prohibition, many cannabis businesses are forced to rely on private equity, venture capital, or expensive debt financing with double-digit interest rates. This deal with CF Bank, a traditional financial institution, suggests a growing comfort level with the cannabis sector, at least at a regional level.

What This Means for Ascend Wellness Holdings

For AWH, this mortgage financing is a strategic move that strengthens its financial position in multiple ways. Sam Brill, CEO of Ascend Wellness, highlighted the importance of the transaction, stating, "This transaction strengthens AWH's balance sheet and demonstrates our ability to execute non-dilutive, low cost of capital financing transactions."

Let's break down the direct benefits for the company:

• Improved Balance Sheet: By securing real estate-backed debt, AWH adds stability to its financial structure. This move converts illiquid real estate assets into accessible capital that can be used for growth and operations.
• Low-Cost Capital: An 8.5% interest rate is considerably lower than what many cannabis operators can secure. This reduces the company's cost of capital, freeing up cash flow that would otherwise go toward interest payments.
• Fuel for Growth in Ohio: Brill noted that the financing positions AWH to "serve patients and local communities in Ohio's emerging market while positioning for further growth opportunities." This capital injection can be used to upgrade facilities, expand retail operations, and solidify their market share in a key state.
• Increased Shareholder Value: Non-dilutive financing is always a win for shareholders. By avoiding the issuance of new shares, AWH ensures that the ownership stake of its current investors is not diminished, which can help support the stock price and deliver long-term value.

This deal is a clear indicator of AWH's strategic financial management. It showcases their ability to navigate the complex regulatory environment and build relationships with mainstream financial partners, setting a strong precedent for their future funding efforts.

The Broader Impact on the Ohio Cannabis Market

Ohio's cannabis market is at a pivotal moment. With a robust medical program and ongoing discussions about adult-use legalization, the state represents a significant growth opportunity. AWH's ability to secure traditional financing for its Ohio properties is a positive signal for the entire state market.

Validating the Market's Potential

When a traditional bank like CF Bank agrees to a multi-million dollar mortgage deal with a cannabis company, it acts as a vote of confidence in the market's stability and future. It suggests that financial institutions are beginning to view cannabis-related real estate as a viable and secure asset class, at least within the confines of state-legal markets. This can encourage other local and regional banks to consider similar financing arrangements, potentially unlocking more capital for operators across Ohio.

Paving the Way for Other Operators

Ascend Wellness is one of the larger multistate operators, but this deal could have a ripple effect that benefits smaller businesses as well. As more banks become comfortable with the underwriting process for cannabis businesses, the barriers to entry for securing loans may decrease. While federal restrictions remain the primary obstacle, state-level progress and successful transactions like this one help normalize the industry from a financial perspective. It provides a blueprint for other companies looking to leverage their real estate assets for growth capital.

Supporting Infrastructure and Expansion

The capital from this deal will likely be reinvested into AWH's Ohio operations. This could mean better dispensaries, expanded cultivation and processing facilities, and more jobs in Cincinnati, Sandusky, and Piqua. This type of investment is crucial for building a mature and competitive market that can effectively serve patients and, potentially, future adult-use consumers.

The Future of Hemp and CBD Financing

While this specific deal involves a vertically integrated cannabis operator, the implications for the broader hemp and CBD industries are significant. The core challenge for both sectors has been access to traditional financial services. This transaction demonstrates that real estate can be a powerful key to unlocking more conventional and affordable financing.

For hemp growers and CBD product manufacturers who own their facilities, this deal serves as an important case study. It highlights the potential of using real estate assets to secure mortgages, providing a non-dilutive source of funding for expansion, equipment upgrades, or operational expenses.

As the legal and regulatory landscape continues to evolve, we can expect to see more creative financing solutions emerge. Deals that were once considered groundbreaking will become more commonplace. The normalization of cannabis and hemp financing is a slow process, but every successful transaction, like AWH's Ohio mortgage, is a step in the right direction. It builds a track record of success that other lenders can look to, reducing the perceived risk and opening doors for more businesses.

Key Takeaways

Ascend Wellness Holdings' $9.3 million mortgage deal is more than just a headline. It's a strategic financial maneuver that provides a roadmap for growth and stability in the cannabis industry. This transaction not only strengthens AWH's position in the promising Ohio market but also sets a positive precedent for the future of cannabis and hemp financing.

By securing a competitive, non-dilutive loan from a traditional bank, AWH demonstrates that with the right assets and strategy, it's possible to overcome the financial barriers that have long plagued the industry. As more states embrace legalization and the federal government inches closer to reform, we can anticipate that access to capital will continue to improve, fueling innovation and growth across the entire sector.

For now, all eyes are on companies like Ascend Wellness as they navigate this evolving landscape and prove that the cannabis industry is ready for the financial mainstream.

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