NORWOOD, Mass., Aug. 12, 2019 (GLOBE NEWSWIRE) -- MariMed Inc. (MRMD), a leading multi-state cannabis and  hemp operator focused on health and wellness, reported record results for both the three and six month periods ended June 30, 2019. Results reflect consistent, dynamic growth in the company’s cannabis businesses as well as momentum in its MariMed Hemp subsidiary, which posted significant initial transactions during the second quarter. Financial comparisons are to the same year-ago periods unless otherwise noted.

Q2 2019 Financial Highlights

  • Revenues increased 774.0% to $25.7 million.
  • Revenue from cannabis business increased 24.5% to $3.7 million.
  • Gross profit up 341.1% to $8.9 million.
  • Net income increased to $4.7 million.
  • Adjusted EBITDA totaled $6.0 million (see definition of this non-GAAP measure and the reconciliation to GAAP, below).

Q2 2019 Operational Highlights

  • MariMed’s core cannabis businesses continued to demonstrate organic growth fueled by expansion of facilities and branded product lines, both in-house and licensed brands. Subsequent to the close of the quarter, MariMed announced a licensing agreement with Denver-based Binske to distribute its popular and diverse cannabis products in several important markets east of the Mississippi.
  • MariMed Hemp, the company’s CBD-focused subsidiary, delivered its first services revenues, the first in a series of sales of hemp seeds to GenCanna Global valued at a total of $25.2 million, with $22.0 million recognized in the second quarter. Subsequent to the end of the quarter, the Company completed a second round of hemp seed sales to GenCanna totaling $8.0 million. (MariMed holds a 33.5% stake in GenCanna Global, a Kentucky-based national leader in seed-to-sale of GMP-quality, hemp-derived CBD).
  • MariMed Hemp began building out its branded product line by acquiring 70% of MediTaurus, a leading international hemp-derived CBD products company. MediTaurus’ Florance™ brand of CBD health and wellness products are sold in the U.S. and Europe through online distributors, wholesalers, pharmacies and physicians. The terms include the acquisition by MariMed Hemp of the remaining 30% of MediTaurus in June 2020
  • MariMed acquired a minority interest in Terrace Inc., a Canadian-based operator focused on the acquisition and development of international cannabis assets in both Europe and South America. Terrace is in the process of becoming a public company traded on the Toronto Venture Exchange.
  • Dr. Jokūbas Žiburkus, MediTaurus co-founder and CEO, was appointed chief innovation officer. An award-winning professor of neuroscience with more than 25 years of biomedical training and experience, Dr. Žiburkus is an internationally recognized expert on the health effects of cannabis.
  • MariMed appointed David Allen as a new independent member of the company’s board of directors and chairman of the audit committee. He brings to MariMed more than 22 years of experience as a director, CEO and CFO of public and private companies.
  • The company relaunched its website at, highlighting MariMed’s product line expansion and broader scope of operations.

Management Commentary

“The second quarter of this year marks a milestone,” said company president and CEO, Bob Fireman. “Both of our business divisions—cannabis and hemp—delivered this quarter to drive record results.

“Our core cannabis businesses continued to execute well, delivering organic growth and profitability as they have for several quarters, with our second largest grow facility yet to come on line (Massachusetts, projected to receive final approvals this month).  The ongoing consolidation of our operations in six states will significantly expand revenues beyond simple organic growth in the second half of this year and in 2020 as this process completes, with acquisitions and transfers of licenses subject to state approvals.

“MariMed Hemp, launched in January of this year, benefited from past investments, notably in GenCanna Global, first announced in October of last year. Our sales of hemp seed could become a seasonal opportunity in coming years while demand remains high. MariMed Hemp is developing and marketing its new Florance™ brand and has others new brands in development.  These products will be marketed to multiple channels of retailers and direct to consumers.  MariMed Hemp recently announced the launch of the Hemp Engine™, its “store within a store” marketing platform for retailers.

“We now operate in two dynamic industries.  The relationships we have built by being a reputable, dependable business partner give us unique access to business opportunities where our ability to move quickly delivers significant shareholder value.  We will continue to invest in people, technology, and brands to dramatically grow shareholder value over time.”

Second Quarter 2019 Financial Summary

Revenues for the second quarter of 2019 were $25.7 million, up 774% compared to $2.9 million in the same year-ago quarter. The increase in revenue was primarily the result of hemp seeds sales totaling $25.2 million dollars, of which $22.0 million was recognized in the quarter. The remaining revenue is expected to be recognized in the third and fourth quarters of 2019 upon payment from the buyer. Revenues excluding the hemp seed sales increased 24% to $3.7 million versus the year-ago quarter.

Gross profit for the second quarter of 2019 was $8.9 million or 34.8% of revenues, up 341.1% from $2.0 million or 68.9% of revenues in the same quarter from a year ago. Gross profit in MariMed’s core businesses as a percentage of revenues increased to 72.4% in the second quarter of 2019 from 68.9% in the year-ago quarter. Net income for the second quarter of 2019 was $4.7 million or $0.02 per fully diluted share, improving from a net loss of $393,000 or $(0.00) per basic share in the year-ago quarter.

Adjusted EBITDA increased 491.7% to $6.0 million from $1.0 million in the year-ago quarter.

First Half 2019 Financial Summary

Revenues for the first half of 2019 were $29.2 million, an increase of 481.4% from $5.0 million in the first half of 2018. The increase included the large sales of hemp seeds during the second quarter, as discussed above.  Gross profit for the first half of 2019 was up 247.7% to $11.2 million or 38.3% of revenue, compared to $3.2 million or 64.1% of revenues in the first half of 2018. Gross profit as a percentage of revenue was affected primarily as the result of the contracted margin and required accounting treatment of the hemp seed sales. Gross profit as a percentage of revenues from MariMed’s core businesses increased in the first half of 2019 to 68.4% versus 64.1% in the same year-ago period. Net income for the first half of 2019 was $4.8 million or $0.02 per fully diluted share, improving from a net loss of a $2.2 million or $(0.01) per basic share in the first half of 2018. Adjusted EBITDA increased 365.4% to $6.3 million from $1.4 million in the same year-ago period.

About MariMed
MariMed Inc. is dedicated to improving health and wellness with the highest quality hemp and cannabis products. The company offers a full range of cannabis products and operates state-of-the-art cannabis dispensaries in six states. The MariMed Hemp division is focused on the development of industrial hemp-derived CBD products.

MariMed owns a significant stake in Kentucky-based GenCanna, a recognized genetic innovator in industrial hemp. MariMed recently acquired controlling interest in MediTaurus, a purveyor of high-quality CBD wellness products in the U.S. and Europe under the Florance™ brand.

Across its branded products, MariMed remains at the forefront of precision dosed products for the treatment of specific medical symptoms. It currently distributes its branded hemp and CBD products in select states and is expanding licensing and distribution to additional markets that includes thousands of dispensaries, pharmacies and wholesalers.

For more information, visit

Facebook: MariMedInc

Important Caution Regarding Forward Looking Statements
This release contains certain forward-looking statements and information relating to MariMed Inc. that is based on the beliefs of MariMed Inc.’s management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company's services and products, changes in the law and its enforcement and changes in the economic environment. Additional risk factors are included in the Company's public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "hoped," "anticipated," "believed," "planned, "estimated," "preparing," "potential," "expected," “looks” or words of a similar nature. The Company does not intend to update these forward-looking statements. None of the content of any of the websites referred to herein (even if a link is provided for your convenience) is incorporated into this release and the Company assumes no responsibility for any of such content.             

All trademarks and service marks are the property of their respective owners.  

Company Contact
Jon Levine, CFO
MariMed Inc.
Tel (781) 559-8713

Media & Investor Contact
Ronald Both or Jonathan Leuchs
Tel (949) 432-7566

About Non-GAAP Financial Measures
This earnings release includes a presentation of adjusted EBITDA, a non-GAAP financial measure. The company defines adjusted EBITDA as income (loss) attributable to common stockholders before interest, taxes, depreciation, amortization, acquisition expenses, financing costs, stock-based compensation expense, and extinguishment of debt via the issuance of stock.

Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, MariMed management believes that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between the company’s core business operating results and those of other companies, as well as providing its management with an important tool for financial and operational decision making and for evaluating the company’s own core business operating results over different periods of time.

The company’s adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in the company’s industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring or unusual items. The company’s adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. MariMed management does not consider adjusted EBITDA to be a substitute for or superior to the information provided by GAAP financial results.

The following table reconciles GAAP net (loss) income attributable to common stockholders and adjusted EBITDA:

 Three Months Ended June 30, Six Months Ended June 30,
 2019 2018 2019 2018
 Operating Income  5,349,479 441,036   5,137,210   131,990
 Depreciation  229,525 171,902   171,125   253,713
 Amortization of intangibles  47,464 1,020   107,917   - 
 Amortization of stock option grants  402,434 405,002   929,597   977,808
 Adjusted EBITDA  6,028,902 1,018,959   6,345,849   1,363,511


MariMed Inc.
Condensed Consolidated Balance Sheets
  June 30,  December 31, 
  2019  2018 
Current assets:
Cash and cash equivalents $3,530,213  $4,104,315 
Accounts receivable, net  8,662,045   5,376,966 
Accounts receivable from related party, net  25,177,845   - 
Due from third parties  2,862,681   3,860,377 
Deferred rents receivable  2,047,914   2,096,384 
Notes receivable, current portion  821,524   51,462 
Inventory  4,783,596   90,460 
Other current assets  170,189   128,552 
Total current assets  48,056,007   15,708,516 
Property and equipment, net  37,603,881   34,099,864 
Intangibles  3,423,751   185,000 
Investments  35,662,106   1,672,163 
Notes receivable, less current portion  2,470,867   1,092,376 
Debentures receivable  -   30,000,000 
Right-of-use assets under operating leases  6,042,970   - 
Right-of-use assets under finance leases  70,989   - 
Due from related parties  -   119,781 
Other assets  345,905   82,924 
Total assets $133,676,476  $82,960,624 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $2,169,363  $3,915,430 
Accrued expenses  3,920,742   1,588,368 
Deferred rents payable  -   105,901 
Notes payable  20,844,176   3,877,701 
Mortgages payable, current portion  238,386   188,231 
Operating lease liabilities, current portion  647,379   - 
Finance lease liabilities, current portion  23,112   - 
Due to related parties  77,157   276,311 
Unearned revenue  3,162,967   - 
Total current liabilities  31,083,282   9,951,942 
Mortgages payable, less current portion  7,219,413   7,348,581 
Debentures payable  6,736,429   3,557,440 
Operating lease liabilities, less current portion  5,662,845   - 
Finance lease liabilities, less current portion  48,874   - 
Other liabilities  100,200   338,200 
Total liabilities  50,851,043   21,196,163 
Stockholders’ equity:
Series A convertible preferred stock, $0.001 par value; 50,000,000 shares authorized at June 30, 2019 and December 31, 2018; no shares issued or outstanding at June 30, 2019 and December 31, 2018  -   - 
Common stock, $0.001 par value; 500,000,000 shares authorized at June 30, 2019 and December 31, 2018; 215,591,103 and 211,013,043 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively  215,591   211,013 
Common stock subscribed but not issued; 752,260 and 97,136 shares at June 30, 2019 and December 31, 2018, respectively  2,080,000   169,123 
Additional paid-in capital  100,621,830   87,180,165 
Accumulated deficit  (20,921,933)  (25,575,808)
Noncontrolling interests  829,945   (220,032)
Total stockholders’ equity  82,825,433   61,764,461 
Total liabilities and stockholders’ equity $133,676,476  $82,960,624 

MariMed Inc.
Condensed Consolidated Statements of Operations
  Three Months Ended June 30,  Six Months Ended June 30, 
  2019  2018  2019  2018 
Revenues $25,672,676  $2,937,325  $29,188,492  $5,020,275 
Cost of revenues  16,745,553   913,357   18,000,343   1,802,226 
Gross profit  8,927,123   2,023,968   11,188,149   3,218,049 
Operating expenses:
Personnel  825,130   284,886   1,498,504   469,557 
Marketing and promotion  76,060   77,943   194,959   129,704 
General and administrative  2,676,454   1,220,103   4,357,475   2,486,798 
Total operating expenses  3,577,644   1,582,932   6,050,939   3,086,059 
Operating income (loss)  5,349,479   441,036   5,137,210   131,990 
Non-operating income (expenses):
Interest expense  (2,619,460)  (286,258)  (4,560,007)  (602,519)
Interest income  64,345   19,072   346,754   38,906 
Loss on debt settlements  -   (563,119)  -   (1,776,960)
Equity in earnings of investments  (45,465)  -   1,912,942   - 
Other  2,948,917   (3,600)  2,948,917   (3,600)
Total non-operating income (expenses)  348,337   (833,905)  648,606   (2,344,173)
Income (loss) before income taxes  5,697,816   (392,869)  5,785,816   (2,212,183)
Provision for income taxes  974,584   (189)  984,595   12,407 
Net income (loss) $4,723,232  $(392,680) $4,801,221  $(2,224,590)
Net income (loss) attributable to noncontrolling interests  46,147   69,287   147,346   132,520 
Net income (loss) attributable to
MariMed Inc.
 $4,677,085  $(461,967) $4,653,875  $(2,357,110)
Net income (loss) per share
Basic $0.022  $(0.002) $0.022  $(0.013)
Diluted $0.020  $(0.002) $0.020  $(0.013)
Weighted average common shares outstanding
Basic  213,319,149   186,645,833   211,510,986   182,746,858 
Diluted  232,828,964   186,645,833   231,020,801   182,746,858