Senior analyst Pablo Zuanic hosted a fireside chat Monday evening with Jon Levine, CEO of MariMed Inc. MRMD who outlined the company’s operations, growth strategies and financial outlook. The discussion provided insights into MariMed’s performance in key states as well as expansion plans and future projections, offering valuable information for cannabis investors.
Strong Q2 Results And Financial Projections
Levine noted MariMed’s robust performance in the second quarter of 2024, maintaining a year-over-year sales growth guidance of 5% to 7%. Despite industry-wide pressures, MariMed has achieved 11% year-to-date growth, driven by its wholesale business in Illinois, Maryland, and Massachusetts.
“Our revenue continues to outpace the industry, and we are on track to meet our guidance for the year and beyond,” Levine said.
MariMed’s focus on strategic growth has led to short-term pressure on margins and EBITDA. Levine explained that investments in new facilities, such as doubling the growth capacity in Maryland, will start yielding results later this year, contributing to long-term profitability.
Expansion Plans In Key Markets
MariMed is actively expanding its footprint in several states. In Maryland, the company is set to open its second store, which Levine expects to generate $10 million annually. The company has also secured a processing license in Missouri, with plans to introduce its popular brands, such as Betty’s Eddies, to the market later this quarter.
In Massachusetts, MariMed gained market share in a flat market through its strong brand recognition. “Our wholesale business in Massachusetts continues to surprise everyone with its growth, thanks to our brand recognition and the quality of our products,” Levine said.
MariMed is also focusing on increasing its retail presence in Illinois and Ohio. The company operates five stores in Illinois and plans to add five more. In Ohio, MariMed is preparing to expand its operations as the state recently launched adult-use cannabis sales.
Future Growth Through M&A And Licensing
Levine discussed MariMed’s ongoing efforts in mergers and acquisitions (M&A) and licensing agreements. While the company is cautious about overpaying for licenses, it is actively seeking opportunities to expand its presence in Ohio, Missouri, and other states. Levine also mentioned the company’s applications for licenses in New York, Texas and Virginia.
MariMed is exploring licensing opportunities in states where it does not currently operate, such as Rhode Island and Puerto Rico. However, Levine stressed the importance of finding the right partners to maintain the high quality and consistency of MariMed’s products.
Political Outlook: Trump’s Stance On Cannabis
During the fireside chat, Levine addressed questions about former President Donald Trump‘s recent comments on cannabis rescheduling. Levine expressed optimism, noting that both Democrats and Republicans are increasingly discussing cannabis rescheduling. He said, “I do think that rescheduling will happen sometime in the next 12 months,” though he acknowledged the slow pace of government action.
These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
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