MariMed Inc (OTCMKTS: MRMD) has been on the rise since reversing off $0.27 lows on Monday on significant trading volume. . MRMD has come down a long sway since the heady days of the late 2018 boom when the stock was the darling of small caps.
darling has been covering MRMD for years noting on September 3, 2018 – MARIMED Inc (OTCMKTS: MRMD) has seen a spectacular rise over the past few years from under $0.20 to recent highs of $4.07 per share. In recent months MRMD has transformed into a volume leader and is currently among the most active stocks on the OTCBB.
MariMed Inc (OTCMKTS: MRMD) bills itself as a multi-state cannabis operator, dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products. The Company develops, owns, and manages seed to sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and dispensary operations. MariMed has an experienced management team that has produced consistent growth and success for the Company and its managed business units.
The Company is at the forefront of science and innovation through research developed by its lab technicians and medical advisors resulting in industry-leading products and brands, including “Kalm Fusion” and “Betty’s Eddies.” These precision dosed products are focused on specific medical symptoms and are licensed and distributed across the country.
In 2019, with the enactment of the 2018 US Farm Bill, MariMed formed MariMed Hemp, a wholly-owned subsidiary, to leverage its seed to sale cannabis platform and experience into the emerging hemp-based CBD industry. MariMed Hemp has developed and is marketing a portfolio of CBD brands and products to multiple retailers and direct to consumers both domestically and internationally. MariMed Hemp recently launched its Hemp Engine™ store-within-a-store distribution platform for retailers. For additional information, visit marimedinc.com.
In November MRMD provided financial information for both the three and nine-month periods ended September 30, 2019. Financial comparisons are to the same periods in 2018 unless otherwise noted. For the three months ended September 30, 2019, total revenues increased 231% to $11.22 million compared to the same period of 2018. This revenue was derived from management fees, licensing fees, and real estate income related to MariMed’s owned and/or operated cannabis facilities which grew 24% to $4.21 million in addition to $ 7.01 million from its Hemp business. Total operating income for the three months ended September 30, 2019 increased to $1.04 million, compared to an operating loss of $548,993 for the third quarter of 2018.
For the nine months ended September 30, 2019, total revenues grew 380% to $40.41 million from $8.41 million for the same period in 2018. Of that total, cannabis related revenues grew 35% to $11.38 million while revenue from the Hemp business contributed $29.03 million. Operating income for the nine-month ended September 30, 2019 totaled $6.18 million, yielding a 15.3% operating margin, compared to an operating loss of $417,004 or a negative 4.9% operating margin for the same period in 2018.
On January 15 MRMD announced Betty’s Eddies™, its proprietary, in-house award-winning national cannabis brand, is now available in both Massachusetts Medical Cannabis and Adult-Use Cannabis Programs. One of the top performing cannabis brands in the United States, Betty’s Eddies™ fruit chews are gluten-free, vegan, and produced with organically grown fruits and vegetables. Featuring a full spectrum cannabis oil, they are available in Multi-flavor packs, Betty’s Bedtime, Seasonal Apple Pie, as well as individual flavor packs. Betty’s Eddies are available at both lower and increased dosages in compliance with medical and adult use regulations to meet a wide variety of consumer and patient needs. Betty’s Eddies are manufactured at MariMed’s state-of-the-art licensed production and manufacturing facility in New Bedford.
Introduced last week at the medical cannabis program at Panacea Wellness Dispensary in Middleborough, MA, these products are now offered to all licensed medical and adult use dispensaries throughout the state. Betty’s Eddies and other MariMed cannabis brands are currently available in medical programs in Delaware, Maryland, Rhode Island, and Illinois. They will soon to be expanding into the medical program in Puerto Rico and the adult use programs in Nevada and Illinois.
Ryan Crandall, Chief Product Officer and SVP of Sales at MariMed, Inc., said, “Betty’s Eddies achieved significant sales growth in 2019 and we are now focused on expanding this brand’s availability in both existing and new markets during 2020. We appreciate the overwhelming customer support Betty’s Eddies has received, whose market feedback drives our constant development and improvement to ensure that we produce the safest, best tasting, and most effective edibles in cannabis.”
Currently trading at a $70 million market valuation MRMD lists $136k in the treasury, $135 million in assets and $40 million in current liabilities on its latest 10Q. The Company put out some big numbers in November annoucning $11.22 million in revenues for the three months ended September 30, 2019.. This revenue was derived from management fees, licensing fees, and real estate income related to MariMed’s owned and/or operated cannabis facilities which grew 24% to $4.21 million in addition to $ 7.01 million from its Hemp business. MRMD owns a 35% stake in GenCanna Global, Inc. a vertically-integrated producer of hemp and hemp-derived CBD products which recently filed for voluntary reorganization under Chapter 11. We will be updating on MRMD when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with MRMD.
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Disclosure: we hold no position in MRMD either long or short and we have not been compensated for this article.