MariMed Is Expanding Cannabis and CBD Hemp Operations, New Capital Infusion

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 an uptrend, led by the strong fundamentals and multiple positive catalysts/development’s 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.


On Nov. 20, 2018, Marimed reported third-quarter 2018 financial results for the quarter and nine months ended September 30, 2018. For the quarter ended September 30, 2018, revenues nearly doubled from the same period a year ago, increasing 98% from approximately $1.7 million to approximately $3.4 million. The Company continued to grow quarterly year-over-year revenue since the second quarter of 2016. Also, during this time period, operating income nearly tripled from the same period a year ago, increasing 200% from approximately $287,000 to approximately $861,000.


“Our results this quarter reflect the execution of our original business strategy and success of our licensed cannabis clients under MariMed’s professional management in multiple states,” said Robert Fireman, CEO of MariMed Inc. “With consistent investment to expand our footprint, and our new Massachusetts and Maryland facilities generating leasing, management, and product licensing revenue, plus strong execution on product sales, we achieved better than expected performance in each of these areas.” 

More recently, on Nov. 27, 2018, the company announced that Navy Capital Green Fund, LP, made a $14.725 million investment in MariMed in November 2018. Navy Capital is the first US-based Long/Short Equity Hedge Fund dedicated solely to the legal cannabis industry.


Our members have booked up to 800% with our recent well timed (2018) NASDAQ and NYSE small cap reports. We will be initiating coverage on another exciting small cap security within the next ten days (December 11th-20th, 2018). Stop missing out on stocks that run, receive our reports in real time on your cell phone, text the word “Traders” to “25827” 

View our recent picks, track record, long term biotech picks and sign up for our real time, low float and breakout mobile/text alerts here –



“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.”

Referring to MariMed’s recent $30 million investment in GenCanna, a global leader in CBD hemp production, Stiefel added, “MariMed’s investment in GenCanna adds an exciting new revenue stream from cannabinoids that may soon be marketed across the U.S. and globally.”


Analysts tracking the stock believes 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. The company reported two years of uninterrupted year-over-year quarterly revenue growth. Moreover, Navy Capital’s infusion would help MariMed to maintain that revenue growth in 2019 and beyond. Therefore, Company’s healthy financial position, as well as a robust business profile, makes it a compelling investment/trading option.


About the Company: MariMed is a multi-state cannabis operator that develops, owns and manages cannabis facilities and branded products lines. MariMed’s team has developed state-of-the-art regulatory-compliant facilities in DE, IL, NV, MD, MA, and RI which are models of excellence in horticultural principals, cannabis production, product development, and dispensary operations. Besides, 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 markets encompassing thousands of dispensaries. MariMed Inc. is one of the 17 top-performing public cannabis companies in the U.S. tracked on the U.S. Marijuana Index.


Other recent Activities/Announcements: MariMed has begun to consolidate ownership of the operations of MariMed’s cannabis-licensed clients into MariMed and acquire cannabis licensees and producers of cannabis-related products and services. Transactions to date include:

  • MariMed has entered purchase agreements to acquire 100% ownership of AgriMed Industries, licensed cannabis cultivation and production company in Pennsylvania, and KPG of Anna LLC and KPG of Harrisburg LLC, two cannabis-licensed MariMed clients that operate medical marijuana dispensaries in Illinois. These transactions are subject to approval by their respective states’ regulatory bodies.
  • MariMed’s cannabis-licensed client in Massachusetts, ARL Healthcare Inc., filed a plan of entity conversion with the state to convert from a non-profit entity to a for-profit corporation. ARL holds three cannabis licenses from the state of Massachusetts for the cultivation, production and dispensing of cannabis. Upon approval of the conversion plan by the State, MariMed shall be the sole shareholder of ARL.
  • MariMed has invested $30 million in GenCanna, a vertically-integrated agriculture-technology company specializing in the production of Hemp CBD. The companies have created a strategic partnership, including a long-term supply agreement, whereby, MariMed will work with GenCanna to develop Hemp-derived CBD products that the companies plan to distribute domestically and internationally into what is expected to be a $22 billion hemp market by 2025 according to the Brightfield Group. Separate from its cannabis business, MariMed intends to create a product and branding business unit focused on the development and distribution of Hemp CBD-derived products.
  • MariMed entered into an exclusive global licensing agreement with Vitiprints for the production and distribution rights in all legal cannabis markets of a proprietary technology that prints precision-dosed dissolvable cannabis into a paper-thin, low-calorie, fast-absorbing product that is delivered sublingually, transdermally, or by drinking when dissolved in liquid. The process, which does not use any filler products, also allows for the printing of any graphic, such as a bar code or website address, on each product.
  • MariMed made a strategic investment in an entity that markets “Sprout,” a software targeting, marketing, and CRM platform designed for the cannabis industry. MariMed shall assist in the ongoing development and design of Sprout, and marketing Sprout to companies within the cannabis industry.
  • Subsequent to the close of the third quarter of 2018, MariMed acquired BSC Groups LLC, a multidisciplinary cannabis advisory firm that provides operational, marketing, and licensing management services to companies within the cannabis industry.


Industry Outlook: 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.



Quarterly Highlights:

  • Revenues of approximately $3.4 million, up 98% year-over-year
  • Operating income of approximately $861,000, up 200% year-over-year
  • Net loss of approximately $10.1 million, primarily due to non-cash amortization
  • Cash of approximately $6.0 million, up from approximately $1.3 million at 12/31/17
  • Notes and mortgages payable of approximately $12.2 million, down 25% from 12/31/17


Year-To-Date Highlights

  • Revenues of approximately $8.4 million, up 88% year-over-year
  • Operating income of approximately $2.0 million, up 75% year-over-year
  • Net loss of approximately $18.2 million, primarily due to non-cash amortization


Commentary on financial performance:

The increase in revenue was primarily due to (i) the growth of rental income from MariMed’s facilities in Maryland and Massachusetts, which were fully and partially developed respectively and leased to tenants, (ii) increased supply procurement services provided to cannabis-licensed clients and other cannabis entities, and (iii) management fees and additional rental revenue which MariMed earns based on a percentage of revenue generated by its cannabis-licensed clients.

Operating income increased as the result of the aforementioned increase in revenue, coupled with modest increases in selling, general and administrative expenses. Operating expenses decreased as a percentage of revenue, thanks to MariMed’s leveraging of infrastructure to generate higher profitability.

The net loss for the period is due to two non-cash items—the amortization of stock option and warrant issuances, and the settlements of debt via the issuance of common stock—required by generally accepted accounting principles. These items did not affect operating income or liquidity. Excluding these non-cash items, net income for the three and nine months ended September 30, 2018, was approximately $406,000 and $936,000, respectively.


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.
  • The inherent competition in the cannabis industry would continue to impinge the business risk profile of MRMD. Moreover, if cannabis becomes legal in the U.S., Canadian companies will have to compete with its American counterparts as well
  • MRMD’s ability to acquire and incubate other marijuana companies as the sector consolidates


Stock Chart:



  • On Friday, December 7th, 2018, MRMD closed at $3.96, on an above average volume of 726,722 shares exchanging hands. Market capitalization is $841.322 million. The current RSI is 43.76
  • At $3.96, shares of MRMD are trading below its 50-day moving average (MA) at $4.33 and above its 200-day moving average (MA) at $2.64
  • The present support and resistance levels for the stock are at $3.76 & $4.28 respectively.



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.