Should Marimed Inc (OTCMKTS:MRMD) be on the List?

Should Marimed Inc (OTCMKTS:MRMD) be on the List?

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Another company now looking to benefit from the Farm Bill hype is Marimed Inc (OTCMKTS:MRMD). Frankly, this has been one of the most dramatic outperformers in the cannabis patch over the past year and has started to finally correct in earnest. It could be an interesting pullback opportunity as the action plays out. The most recent interesting announcement out of the company came a couple weeks ago when Marimed announced that Navy Capital Green Fund, LP, made a $14.725 million investment in MariMed in November 2018 (some of which was reported in MariMed’s last 8K SEC filing). According to the release, Navy Capital is the first US-based Long/Short Equity Hedge Fund dedicated solely to the legal cannabis industry.

“Navy Capital’s $14.7 million investment in MariMed reflects our belief that MariMed is one of the best-managed multi-state cannabis operators in the United States,” said Sean Stiefel, Navy Capital portfolio manager. “This investment will help MariMed grow its best-in-class cannabis facilities. We are very impressed with the company, and have participated in three financings since we first met MariMed CEO Bob Fireman and his team.”

Marimed Inc (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 noted above, MRMD just announced that Navy Capital Green Fund, LP, made a $14.725 million investment in MariMed in November 2018 (some of which was reported in MariMed’s last 8K SEC filing). In all, recent action has seen about -20% stripped out of shares for shareholders of the stock during the trailing week.

Moreover, the stock has registered increased average transaction volume recently, with the past month seeing 33% over the long run average.

“Navy Capital is a valued partner whose ongoing funding is helping us execute our growth strategy,” stated Robert Fireman, MariMed CEO. “Part of this investment was used to fund our new partnership with GenCanna, a major producer of CBD derived from hemp. We intend to help GenCanna develop and distribute innovative brands of CBD-infused health and wellness products.”

Earning a current market cap value of $654.36M, MRMD has a significant war chest ($6M) of cash on the books, which must be weighed relative to about $12.9M in total current liabilities. MRMD is pulling in trailing 12-month revenues of $10M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 97.7%. This may be a very interesting story and we will look forward to updating it again soon. 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.

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