Ascend Wellness Seeks Shareholder Approval for Reverse Stock Split Ahead of Planned U.S. Exchange Uplisting

Ascend Wellness Holdings (CSE: AAWH-U.CN; OTCQX: AAWH) has scheduled a special shareholder meeting for August 28, 2026, seeking approval for a reverse stock split as part of its strategy to pursue a listing on a major U.S. stock exchange.

The New York-based multi-state cannabis operator said the proposed reverse split is intended to help the company meet the minimum share price requirements typically required by national U.S. exchanges. If approved, Ascend’s board would have the discretion to implement a reverse stock split at a ratio ranging from 1-for-10 to 1-for-50, depending on the requirements of its planned uplisting application.

“A reverse stock split is a necessary step on our path to a listing on a major U.S. exchange,” CEO Sam Brill said in a statement. He added that an uplisting could improve access to capital, broaden the company’s investor base, and create new opportunities for cannabis operators as the regulatory landscape evolves.

According to the company, the reverse split would reduce the number of outstanding shares while proportionally increasing the price of each share. Ascend said the transaction would not change the overall value of shareholders’ investments, ownership percentages or voting power, aside from minor adjustments related to the rounding of fractional shares.

The board emphasized that approval of the proposal does not guarantee the company will secure a listing on a U.S. national exchange or that the reverse split will result in a sustained increase in its share price.

If shareholders approve the measure, the board will retain authority to determine whether and when to implement the reverse split. That authority will expire one year after the special meeting or upon completion of a U.S. exchange listing, whichever occurs first.

Shareholders of record as of July 7, 2026, are eligible to vote at the virtual meeting, scheduled for 11:00 a.m. ET on August 28. As of the record date, Ascend had approximately 203 million Class A common shares outstanding.

Approval of the reverse stock split requires the affirmative vote of holders representing a majority of the company’s outstanding Class A shares. The board has unanimously recommended that shareholders vote in favor of both the reverse stock split proposal and a related proposal allowing the meeting to be adjourned if additional time is needed to solicit votes.

The company has filed its definitive proxy statement with the U.S. Securities and Exchange Commission, outlining the proposal and associated risks.

What Does a Reverse Stock Split Mean for Investors?

A reverse stock split changes the number of shares outstanding without changing the overall value of the company. For example, in a 1-for-10 reverse split, an investor holding 1,000 shares would own 100 shares afterward, but each share would be worth approximately ten times more, assuming the market price adjusts proportionally.

The transaction itself does not create new value or alter an investor’s proportional ownership in the company. Instead, it consolidates existing shares into fewer, higher-priced shares.

Companies often use reverse stock splits to meet the minimum share price requirements of major stock exchanges or to position themselves for broader institutional investment.

In Ascend Wellness’ case, the proposed reverse stock split is intended to support its planned application to list on a major U.S. exchange.

However, the company noted that approval of the proposal does not guarantee an uplisting or a lasting increase in its share price. The proposal simply gives the board the flexibility to execute the reverse split if it determines doing so is necessary as part of the listing process.