Shares of Marimed Inc (OTCMKTS:MRMD) just held onto key support at the 200-day simple moving average, with a sharp run higher to close out last week. This week will be very interesting, particularly considering the company’s placement in the CBD space following the signing of the 2018 Farm Bill.
To that effect, the company recently announced that “the Hemp CBD Era officially began with the 2018 Farm Bill signed into law” by President Trump. According to the release, “the landmark legislation, which legalizes industrial hemp, opens doors for MariMed, GenCanna Global (GenCanna) and other US businesses to meet soaring demand for Hemp CBD that analysts expect to grow from today’s $800 million to $22 billion by 2022. For the past few years, demand for CBD has far outpaced supply, as consumers discovered CBD’s efficacy for treating a range of medical conditions, including pediatric epilepsy, some cancers (and painful cancer treatments), acute anxiety, arthritic and chronic pain, high blood pressure, and various skin conditions, including acne.”
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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Marimed Inc (OTCMKTS:MRMD) pulled in sales of $3.4M in its last reported quarterly financials, representing top line growth of 97.7%. Ultimately, that’s the most important point to make here: the growth supporting this longer-term uptrend is real.
As we discussed earlier, MRMD just announced its excitement at the signing of the 2018 Farm Bill and its likely implications for the CBD industry. It plays into a positive near-term tape, with MRMD shareholders riding a recent rally of just about 11% over the past five days of trading action.
“Legal hemp has the potential to reshape America’s health and wellness landscape,” said Charles Finnie, MariMed’s Chief Strategy Officer. “CBD will likely become a separate industry from the highly regulated, state-legal cannabis industry that remains illegal at the federal level. Lifting federal restrictions on hemp cultivation, research and distribution will enable advanced medical research, as well as increased agricultural production of pharmaceutical-quality CBD products that avoid the side effects and addiction risks of some pharmaceuticals .”
At this time, carrying a capital value in the market of $663.92M, MRMD has a significant war chest ($6M) of cash on the books, which compares with 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%. You can bet we will update this one again as new information comes into view. 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.