Why This Deal is Important
The initial chunk of $23 million — $3.70 per share of Series C preferred stock plus a common stock purchase warrant — will be utilized by MariMed to pay off long-term debt and expand its cannabis facilities.
“We are thrilled to have been selected by Hadron as their preferred partner to complete this strategic investment in the US MSO sector,” MariMed CEO Bob Fireman said in a prepared statement.
The funds are anticipated to bolster MariMed’s balance sheet and enable the Norwood, Massachusetts-based company to ink acquisitions, Fireman added. Hadron has invested in cannabis companies before, promoting an investment portfolio valued at over $300 million.
Hadron CIO Marco D’Attanasio praised MariMed, touting its potential as a “profitable” multistate operator.
The Next Step For MariMed
MRMD released fourth-quarter financial results for 2020 on March 24, 2021 you can read the transcript here. They may also look to attain new cannabis licenses. So far, the company has successfully won 17.
The firm also hopes to develop over 300,000 square feet of cultivation and production space.
In November, the firm published an earnings report showing core cannabis revenues hovered at $13.5 million for the third quarter. That’s up by 220% from the same quarter of 2019. The gross profit for the quarter jumped 221% to $8.7 million when compared to $2.7 million achieved in the third quarter of the prior year.
MRMD is currently trading around $0.77 a share — up about 63% YTD.