MariMed CEO Issues 2017 Year End Letter to Shareholders
- Continued development and management of licensed cannabis facilities in multiple states
- Ongoing expansion of precision dosed branded products
- Further expansion of strategic licensed manufacturing partners and network to legal dispensaries nationwide
- Continued growth of revenue
- Well positioned for another strong performance in 2018
NEWTON, Mass., Jan. 18, 2018 (GLOBE NEWSWIRE) — MariMed Inc., (OTCQB:MRMD) today announced its plans to build upon its success in the expanding emerging cannabis industry. MariMed intends to further establish itself as an industry leader in the development and management of state-of-the-art state-compliant cannabis facilities, products, and licensed brands.
MariMed CEO Robert Fireman explains: The U.S. legal cannabis industry continues to grow with many predicting it at $50 billion by 2026 (Cowen & Company). This “Revolutionary Transformation” plows forward as more states legalize cannabis for both medical and adult use and the legislators of the remaining states debate the relevant issues.
Since becoming CEO of MariMed in July, I have worked diligently to execute the Company’s defined plan to expand the cannabis businesses we manage, develop new facilities in Delaware, Maryland, and Massachusetts, and expand the distribution of our branded products through a strategic growing network of manufacturers nationwide.
We believe cannabis is the most important medicinal plant on Earth and has the power to transform human health and wellness. With medical research and clinical data validating cannabis’ medicinal value, coupled with patients seeking safe alternatives for highly addictive prescription opioids and the American public wanting legal access, the future for MariMed’s managed services and branded products business model looks extremely bright.
The expansion of the cannabis industry is attracting more capital and more sophisticated investors who want to invest in opportunities managed by validated professional executives. MariMed stands out as such a company, with proven, time-tested “best practices” operating history in multiple highly regulated legal cannabis states.
The MariMed executive team members originally came together to develop the Thomas C Slater Compassion Center in Rhode Island in 2012. This seed to sale medical cannabis facility is highly regarded as one of the premier operations in the country. It is acclaimed for its operating procedures being best in class, replicable, and scalable. This experience became the foundation of excellence that MariMed has utilized in all the cultivation, production, and dispensing cannabis facilities it has designed and manages. Our Company recognized that the East Coast state-regulated medical cannabis programs provided a better business atmosphere to build the foundation of our company with its limited licenses and captive patient base. We also discovered that our cultivation and production methods and technologies were equal to or even better than what we saw in the “Wild West” of California and Colorado. We planned to grow quietly state-by-state in the emerging East Coast, as others were running at the cannabis “gold rush” in the Western States. MariMed wanted to be under the radar until we emerged as a sizeable, proven, driving force in the industry.
MariMed’s initial strategic plan included:
- Win licenses and develop medical cannabis facilities as East Coast state programs began.
- Develop a brand of unique, precision dosed cannabis infused products utilizing best scientific practices
- Develop a national distribution network through strategic partners in legal states across the country
We are successfully executing on that strategy. MariMed has designed, developed, and currently manages six state-of-the-art facilities in Delaware, Maryland, Illinois, and Nevada with four more under development in Massachusetts and Maryland. MariMed’s Kalm Fusion™ and Betty’s Eddies™ branded products in both THC and CBD formulations are currently distributed through partnerships in five states. We intend to expand to many additional states in the near future.
2017 IN REVIEW
A very busy 2017 was a tipping point for MariMed’s future. The previously announced highlights below showcase our activities, and demonstrate our growing and maturing platform that provides stable recurring and expanding revenues.
News & Transaction Highlights
- Worlds Online Acquires 100% of MariMed Advisors, Changes Name to MariMed Inc. to Focus 100% on Cannabis Industry. Ticker changed to MRMD – May
- MariMed Inc. names Robert Fireman CEO and John Levine CFO – July
- MariMed Inc. and Tikun Olam USA expand exclusive cultivation, production and licensing agreement to five states – September
- Acquired Betty’s Eddies™ ownership rights – November
- $4.5 million in revenue, first 9 months (+110%)
- $1.36 million EBITDA, first 9 months (+300%)
- $21 million in assets (150% increase Year-over-Year)
- Raised approximately $20 million in funding
- Developed 100,000 Sq. Ft. Cultivation and Production Facility
- Contracted to Purchase Dispensary in Annapolis
- Developing 70,000 Sq. Ft. Cultivation and Production Facility
- Developing three dispensaries
- Purchased two properties totaling 160,000 Sq. Ft.
- Developed and opened second dispensary
- Soft launched Kalm Fusion™ and Betty’s Eddies™ brands into 51 dispensaries
- Developed and opened cultivation facility
- Licensed branded products for distribution
- Licensed branded products for distribution
The challenge of financing acquisitions, operations and product expansion on reasonable terms in the restrictive cannabis financial environment has slowed our growth at times. However, we successfully secured multiple sources of financing that enabled us to preserve shareholder equity and value. We plan to reinvest near term profits back into growth and be judicious in our selection of financing as we execute our strategic plans.
Amid all of the strides we made in 2017, we continued to be challenged. Our lean and dedicated staff now needs to add additional operational managers, qualified scientific lab technicians, and account staff for better oversight and reporting. We are also intending to hire a C-level manager to lead the ongoing development of our brands, branded products and national distribution network to thousands of licensed dispensaries.
2018 and Beyond
We plan continued expansion of our core business products and services. Innovation is top of mind in our ongoing efforts to develop and verify new technologies, formulations, and proprietary cultivation and production techniques to keep MariMed at the forefront of an evolving industry.
We believe a consistent recreational brand will be as important to consumers in the future as dosing accuracy is to medical patients. The Company’s products have risen above the competition as a result of our efforts in organic cultivation, precision dosing and developing flavorful formulations for our THC and CBD products. These above-industry-standard operating principles and differentiation are what makes our products among the safest, most effective, consistent and convenient to use in the industry.
Plans for 2018 include:
- Opening additional facilities in Massachusetts and Maryland to further continue revenue growth;
- Targeting new licenses as well as existing facility expansion in multiple states;
- Expanding Kalm Fusion™ and Betty’s Eddies™ brand products to several new states;
- Enhancing management protocols and oversight to improve efficiencies, security, quality, and excellence; and
- Introducing Israel’s Tikun Olam clinically proven effective premium cannabis products, including its world-renowned Avidekel™ high-CBD strain, into DE, RI, MD, MA and IL.
We have been quite successful in the legal medical cannabis markets, and will continue our expansion there. We are also prepared to move, where appropriate, into states allowing adult or recreational use. The legalization of cannabis promises economic benefits as well as the social benefits inherent in the development of safe, efficacious medicine.
Thank you so much for your ongoing support. Come grow with us.
Robert Fireman, CEO
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About MariMed Inc.: MariMed is an industry leader in the development and operation of state licensed regulatory compliant cannabis cultivation, production, and dispensary facilities in multiple states nationwide. These facilities are models of excellence in horticultural principals, cannabis production, product development, and dispensary operations. MariMed is also on the forefront of precision dosed branded products for the treatment of specific medical symptoms. MariMed distributes its branded products in select states and is currently 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. tracked on the U.S. Marijuana Index, (www.marijuanaindex.com) and CannabIndex. For additional information, visit www.MarimedAdvisors.com
(Note: share price was $1.06 on release date.)