Marimed Inc (OTCMKTS:MRMD) Searches for a Bid

Marimed Inc (OTCMKTS:MRMD) Searches for a Bid

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Shares of Marimed Inc (OTCMKTS:MRMD) popped higher late last week after the company announced preliminary, unaudited, select financial results for the three-month period ended March 31, 2020, which included revenue of $7.5 million, a 112% increase compared with $3.5 million in Q1 2019, Gross profit of $4.6 million compared with $2.3 million in Q1 2019, and EBITDA of $1.5 million, compared with an EBITDA loss of $4,000 in Q1 2019.

According to the release, due primarily to the impact of the coronavirus (COVID-19) pandemic on the Company and its financial team preparing the financial reports and results, the Company has filed a Current Report on Form 8-K to avail itself of a 45 day extension to file its Form 10-Q, relying on an order issued by the Securities and Exchange Commission on March 25, 2020 pursuant to Section 36 of the Securities Exchange Act of 1934, as amended (Release No. 34-88465) (the “SEC COVID Order”). The Registrant will file its Form 10-Q as soon as practicable, and in any event, within the 45-day extension period under the SEC COVID Order.

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 preliminary, unaudited, select financial results for the three-month period ended March 31, 2020, which included revenue of $7.5 million, a 112% increase compared with $3.5 million in Q1 2019, Gross profit of $4.6 million compared with $2.3 million in Q1 2019, and EBITDA of $1.5 million, compared with an EBITDA loss of $4,000 in Q1 2019.

Recent action has seen 71% added to share values of the stock over the past week of action. Furthermore, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed nearly 150% beyond its prior sustained average level.

“The success of our consolidation strategy contributed to our sales momentum in the first quarter of 2020, enabling us to grow quarterly revenues by 112% compared to the prior year period,” said Bob Fireman, CEO of MariMed. “We are pleased with the consistently strong performances reported by our consolidated cannabis businesses in Illinois and Massachusetts as well as an increase in licensing revenues, in line with our strategic growth plan. As we move through 2020, we expect to continue strong revenue growth from further consolidation of our client businesses as well as the expansion of our product portfolio into additional states.”

Now commanding a market cap of $58M, MRMD has a stash ($2.2M) of cash on the books, which must be weighed relative to about $36.7M in total current liabilities. One should also note that debt has been growing over recent quarters. MRMD is pulling in trailing 12-month revenues of $45.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 50.9%. 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.