One stock that has started to jump back on our radar in recent action is MARIMED Inc/SH SH (OTCMKTS:MRMD), which recently broke back above its 50-day simple moving average. The stock is locked in longer-term uptrend in the cannabis patch as a US play, which is somewhat rare on the cannabis leaderboards. Shares remain above their major moving averages with volume on the rise, which is always a good sign when in combination. And remember, this is a stock that was the bell of the ball in a huge way this past spring.
As far as recent catalysts, the company reported Q2 2018 financial results a couple weeks ago, posting revenue of $2.9 million for the three months ended June 30, 2018, an 81% increase from the same period in 2017. According to the release, “MariMed continued on a solid trajectory of year over year revenue growth that it has achieved each quarter since 2016.”
MARIMED Inc/SH SH (OTCMKTS: MRMD) is an industry leader in the design, development, operation, funding, and optimization of medical cannabis cultivation, production, and dispensary facilities. MariMed’s team has developed state-of-the-art, regulatory-compliant legal cannabis facilities in multiple states.
These facilities are models of excellence in horticultural principals, cannabis production, product development, and dispensary operations. MariMed is on the forefront of precision dosed cannabis medicine for the treatment of specific medical conditions. MariMed branded products are being licensed and distributed in legal cannabis states across the country.
We have licensed Tikun Olam world renown Israeli cannabis genetics with 5 years of clinical data for our Delaware managed facility.
Moreover, MariMed Inc. provides consulting services for the design, development, operation, funding, and optimization of medical cannabis cultivation, production, and dispensary facilities. The company also develops and manages facilities for the cultivation, production, and dispensing of legal cannabis and cannabis-infused products under the Kalm Fusion brand name. In addition, it offers legal, accounting, human resources, and other corporate and administrative services.
As of December 31, 2017, it developed and managed six operating cannabis facilities for clients in Delaware, Illinois, Nevada, and Maryland. MariMed Inc. was incorporated in 2011 and is based in Newton, Massachusetts.
According to company materials, “MariMed designs, develops, finances, and optimizes the success of medical cannabis cultivation, production, and dispensary facilities through its validated management. MariMed’s team has developed or is in the process of developing state-of-the-art regulatory-compliant facilities in DE, IL, NV, MD, MA, and RI. These facilities are models of excellence in horticultural principals, cannabis production, product development, and dispensary operations. In addition, MariMed is on the forefront of precision dosed branded products for the treatment of specific medical symptoms. MariMed currently distributes its branded products in select states and is expanding licensing and distribution to numerous additional states encompassing thousands of dispensaries.”
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As note above, MRMD has been pushing higher in recent action on rising volume following strong topline data. In all, we’ve witnessed 15% during the past week in terms of shareholder gains in the name. Furthermore, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 19% over what the stock has registered over the longer term.
“Our results this quarter reflect the continued success of our clients under MariMed’s management and business strategy utilizing our proprietary brands and products while operating in our state-of-the-art cannabis cultivation, production, and dispensary facilities,” stated Robert Fireman, CEO of MariMed Inc. “We continue to expand our replicable and scalable business models into more facilities and legal cannabis states. The recent opening and constant expansion of the medical cannabis program in Maryland has been fantastic. We believe this momentum for the Company will continue as we open our cannabis businesses in Massachusetts in Q3 this year.”
Currently trading at a market capitalization of $538.83M, MRMD has a significant war chest ($5.1M) of cash on the books, which is balanced by about $16.1M in total current liabilities. MRMD is pulling in trailing 12-month revenues of $8.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 81.2%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $MRMD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MRMD, either long or short, and we have not been compensated for this article.