MariMed Inc. (OTCQB: MRMD) designs, develops, finances, and optimizes the success of medical cannabis cultivation, production, and dispensary facilities. MariMed’s team has developed state-of-the-art regulatory-compliant facilities in DE, IL, NV, MD, MA, and RI.

 

In the recent past, the company stock has shown a solid uptrend, led by the strong fundamentals and multiple positive catalysts in the recent past. The company’ robust business and financial risk profile are marked by its diverse platform, continuous flow of capital for new business and product development, strategic acquisitions, and expansion of infrastructure that will enable it to take advantage of this critical time in the industry.

 

The company recently announced that it had signed a letter of intent (LOI) to make a strategic investment in Cannabis Venture Partners (CVP).   CVP’s flagship technology, Sprout, is an all-in-one CRM and marketing software designed for dispensaries and cannabis brands.  The Sprout software platform is used today by dispensaries and cannabis brands in nine states and its clients – brands and dispensaries – typically achieve 10x return on their marketing spend to acquire, retain, and increase the share of wallet with their customers.

 

Through its partnership with MariMed, Cannabis Venture Partners will continue to develop and expand the Sprout platform and launch new technologies, data, and content that are consumer-centric and help dispensaries and cannabis brands increase sales, improve customer loyalty and reach more customers.

 

Before this on May’16th the company reported first quarter financial results for 2018, posting consecutive year over year increased Q1 quarterly revenue since 2015. MariMed’s management expertise in cannabis has led to a dramatic increase in revenue at client facilities. The company reported $2.08 Million in Q1 2018 Revenue, an 81% Increase.

 

The company continues to be on a solid trajectory of the year over year growth that it has achieved each quarter since 2015. MRMD’ new Maryland cultivation and production facility, which came online in Q1, will bring increased rent, management, and licensing fees, adding to its existing revenue streams from facilities in Illinois, Delaware, and Nevada. The management anticipates increases in revenue from assets as the cannabis business in Maryland and Massachusetts continues to expand.

 

With each new client, MRMD generates significant revenue from fees for leases, licenses, and managed services. The management expects incremental growth in licensing from new product lines and organic growth from product sales as its licensed Nature’s Heritage Cannabis, Kalm Fusion, Betty’s Eddies, Tikun Olam and Lucid Mood brands gain loyal followings in each current market and as it expands its national distribution network to additional states.

 

From an industry perspective, the legal cannabis industry has accelerated at a remarkable pace in the recent past. North American consumers spent $6.9 billion on legal cannabis products, up 34% from 2015 and by 2021, legal market sales are expected to surpass $21 billion. If we take that call, then that adds extreme value further.

 

Analysts believe that MRMD is one of those handful companies that has achieved continuous revenue growth and is well poised to capture the opportunities for growth in Massachusetts and Maryland.  MRMD is part of one of the major success stories that are available in the market. Company’s healthy financial position, as well as a robust business profile, makes it a compelling investment/trading option.

 

About the Company: 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 at 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. MariMed Inc. is one of the 17 top-performing public cannabis companies in the U.S.

 

 

Other recent Activities/Announcements 

• Capital Raised: raised approximately $1.5 million in equity through the sale of its 144 Common Stock in private placement in 2018 at prices averaging 15% below the market price.

Growth in the Multiple States: MariMed continued expanding its operations in cannabis-licensed states:

• Maryland: Kind Therapeutics USA began production of products from first crops under MariMed guidance.  Began distribution of Nature’s HeritageCannabis™, MariMed’s new branded strains and products. Began cultivation of Tikun Olam™ branded cannabis strains that have been proven effective in clinical research trials.

 

• Massachusetts: Continued construction of 68,000 sq. ft. State-Of-The-Art cultivation and production cannabis facility in New Bedford. Constructing a licensed cannabis dispensary in Middleborough. Actively pursuing permit approval for development of two additional dispensaries in Boston area.
• Nevada: Expanded Kalm Fusion™ Popcorn and Powdered Tincture into medical and recreational dispensaries.
• Delaware, Illinois, Maine: Continued distribution of licensed Kalm Fusion and Betty’s Eddies™ brands to 57 additional medical cannabis dispensaries.
• Branded Products: Introduced MariMed’s new Nature’s Heritage Cannabis brand, MariMed’s branded products and flower grown by Kind Therapeutics USA to approximately 35 newly opened medical cannabis dispensaries in Maryland. Continue to expand licensing sales of MariMed Brands, Kalm Fusion, and Betty’s Eddies.

 

Industry overview:

Latest Quarter Financial position: 

Revenue and Yields: MariMed had $251,166 of operating income in the first quarter of 2018, an increase from $228,552 in the comparable quarter in 2017.  MariMed incurred a net loss of $1.83 million in the first quarter of 2018, versus net income of $0.11 million in the first quarter of 2017. The loss is primarily due to non-cash equity compensation and debt settlements in 2018 that have no impact on operations/cash flow.

 

Liquidity:

• Debt Reduction: Reduced liabilities by $1.5 million through the conversion of $0.98 million of promissory notes into Common Stock and retiring $500,000 of additional promissory notes.
• Capital Raised:Raised approximately $1.5 million in equity through the sale of its 144 Common Stock in private placement in 2018 at prices averaging 15% below the market price.

Key risk factors and potential stock drivers:

• Company’s ability to maintain its liquidity and financial flexibility to fund its incremental capital requirements.
• Notwithstanding the recent boom, this is still a nascent stage space and only time would differentiate between real winners and laggards. As far as choosing an option with a relative advantage is concerned, MRMD is the preferred choice with upside potential.
• MRMD’s ability to acquire and incubate other marijuana companies as the sector consolidates

 

Stock Chart:

 

 

Comments:

• On Friday, July 13th, 2018, MRMD closed at $3.20, on volume of 195K shares exchanging hands. Market capitalization is $619 million. The current RSI is 59.22
• At $3.20, shares of MRMD are trading above its 50-day moving average (MA) at $2.25 and above its 200-day moving average (MA) at $1.17
• The present support and resistance levels for the stock are at $2.57 & $3.51 respectively.

 

Disclaimer

Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.

This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.

We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.

When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.

17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.

Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.