MRMD stock is moving higher in early trading on December 31, 2019, after the company announced its plan to super-charge its revenue growth in 2020.
MariMed Inc. (MRMD:OTCQX), a leading multi-state cannabis and hemp operator focused on health and wellness, announced today that MariMed and GenCanna Global, Inc. (owned 33.5% by MariMed) are both expecting increased revenues in 2020.
MariMed’s plan to consolidate the cannabis license companies it developed and manages is on track heading into 2020. To date, the Company has received state approval and has completed the transfer of licenses in Massachusetts and Illinois and approval from the State of Nevada is imminent. Massachusetts operations and revenue generation began this month and in Illinois, the state has legalized adult use. As a result, the operations in both states are expected to experience significant revenue growth in 2020. During 2019, under MariMed management, revenue of the cannabis managed businesses in Delaware, Maryland and Illinois have experienced strong growth. Following state approvals, the consolidation will allow MariMed to report the revenues from these other states in the Company’s consolidated financial statements.
This fall, GenCanna successfully completed one of the largest hemp harvests in US history and has begun to process over 14 million pounds of CBD-rich biomass. GenCanna had its challenges in 2019 when capital market conditions affected the funding of their expanded production facilities and operations, which resulted in some negative press towards GenCanna when the development of the new facilities was put on hold. A fire in early November at its main processing and lab facility in Kentucky impacted GenCanna’s 2019 production, revenue and cash flow.
As GenCanna has reported, it has established a joint venture with a processing facility in South Carolina that uses specialized technology to harvest large quantities of biomass into saleable full and broad-spectrum oils and isolates. This facility enables GenCanna to offer tolling agreements to farmers outside GenCanna’s farming network to process potentially millions of pounds of CBD biomass providing GenCanna with an incremental revenue source. Under this initiative, GenCanna will continue to be the one of the largest producers of GMP compliant CBD oils and isolates in the United States.
In addition to the ownership interest in GenCanna, the Company’s wholly-owned subsidiary, MariMed Hemp, has an agreement with GenCanna to brand and distribute hemp-derived CBD products. MariMed continues to optimize its investment in GenCanna by curating creative brands of CBD infused products that it markets and distributes to national retailers and physician’s networks. In addition, MariMed’s Hemp Engine is being rolled out to liquor stores, drug chain stores and C-stores initially in New England and soon across the country.
MariMed CEO, Bob Fireman noted, “We are pleased that GenCanna has the majority of their 2019 challenges behind them and that they are well positioned for revenue and related cashflow growth in 2020 driven primarily by their successful harvest. At MariMed Hemp, we continue to introduce new CBD brands and to expand our retail presence for our hemp-based CBD products supplied primarily by GenCanna. Our customers have developed a trust for the GenCanna brand and approach to quality which is reflected in our branded products. MariMed is also expecting a strong 2020 from our cannabis businesses as the consolidation will create new incremental revenue and long-term value for our shareholders.”
On December 19, 2019, MariMed Inc. (MRMD: OTCQX) received final authority from Massachusetts Cannabis Control Commission (CCC) to commence RMD operations at its Panacea Wellness Dispensary in Middleborough. ARL Healthcare Inc., a wholly-owned MariMed subsidiary, plans to open two additional dispensary licenses in Massachusetts.
The Panacea Wellness Dispensary in Middleborough, MA will open for medical use on December 19, 2019, at 10 AM. New Panacea patients can register directly at the state-of-the-art facility at 29 Harding St. beginning that day.
“We are thrilled to open our doors to the patients of Massachusetts finally,” noted Tim Shaw, COO “This facility elevates cannabis retail for medical cannabis patients in the state. We are laser-focused on the patient experience, and it begins on registration.”
The initial opening of Panacea Wellness will serve patients who hold a valid Medical Cannabis card in the state. There are over 60,000 patients enrolled in the Massachusetts medical cannabis program. The Company is expecting adult-use approval from the CCC within the next three months, pending a final inspection by the agency. The recent Marijuana Business Factbook estimates 2019 recreational sales in Massachusetts will be in the range of $450 million-$500 million.
Products sold at Panacea Wellness will be from the wholesale market during the soft opening period. MariMed in-house brands Betty’s Eddies™, Kalm Fusion™, and Nature’s Heritage™, among others, are greenlit for production at ARL Healthcare’s Cultivation and Production Facility in New Bedford Massachusetts – also licensed for operation.
MariMed CEO Bob Fireman added, “We are extremely proud to open the beautiful Panacea Wellness Dispensary. We are looking forward to the opportunity to serve the adult-use market shortly. This location provides an unparalleled experience in the state, and we are delighted to serve the Southcoast cannabis community. MariMed will begin reporting revenue from Panacea, as well as our New Bedford Cultivation and Production facility in the fourth quarter of 2019.”
On December 3, 2019, MariMed Inc. (MRMD:OTCQX) announced that its proprietary, in-house brand, Betty’s Eddies™, is among the top-selling sublingual and edible products in a national survey conducted by LeafLink, the leading wholesale platform for cannabis products in the United States.
On November 19, LeafLink released its second-annual LeafLink List, honoring the standout cannabis brands, products, and retailers on its B2B e-commerce marketplace, which processes over $1.4B per year in wholesale cannabis orders. Over 1100 brands were included in the survey. MariMed, Inc. in-house brand Betty’s Eddies™, which are gluten-free, vegan, and produced with organically grown fruits and veggies, is the LeafLink Winner for Best Selling Medical Product.
MariMed’s family of brands sell in the dispensaries it owns and manages, and on a wholesale basis to retailers in each of the six states it operates. Several recent marketing studies have concluded that infused cannabis products will occupy an increasing share of the overall US cannabis market, which according to the 2019 Marijuana Fact Book, is on pace to exceed 35% growth and $12 billion in sales this year.
Betty’s is the most widely distributed product in Maryland, reaching over 70 state dispensaries in less than ten months. New SKUs, including Extra Strength Betty’s Eddies™, will launch in Maryland, Rhode Island, Illinois, and Massachusetts in December of 2019.
Ryan Crandall, Chief Product Officer and SVP of Sales at MariMed, Inc., said, “I am thrilled cannabis consumers love the Betty’s Eddies brand and products as much as our hardworking team, which is responsible for their quality, custom formulation, and wide availability. Betty’s will continue to innovate with new seasonal flavors, limited release small-batch drops, and delicious new Betty’s products. The expertise to consistently shape the intended product experience in any state or territory is most important to building consumer trust, brand loyalty, and ultimately revenue growth.”
The Branded Product Division at MariMed recently launched Betty’s Eddies™ in Rhode Island and plans to launch in MA and Puerto Rico in the next 60 days. MariMed will be opening its Panacea Wellness facility in Massachusetts in mid-December for medical cannabis patients, and recently completed the consolidation of its two managed dispensaries in Illinois.
Bob Fireman, CEO of MariMed, Inc., said, “We are pleased to see the strength of our brands recognized for their significant acceptance and sales growth across multiple markets. Our product division is both innovative and highly responsive to tastes, patient needs, and trends that differ from market to market. As our quality manufacturing capacity and licensing relationships grow, we anticipate MariMed’s product family to continue to prosper in a crowded market.”
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