MariMed Inc (OTCMKTS:MRMD): What's Next For This Cannabis Player?

MariMed Inc (OTCMKTS:MRMD) upward run that began late last year is gaining momentum as the stock continues to clock record highs. The stock is already up by more than 50% for the year as the Chief Executive Officer Robert Fireman insists they are still in the initial stages of growth as an industry leader.After breaking a critical resistance level at the $0.81 mark, the stock rose to record highs of $1.29 before pulling back to the $1. 09 mark. The pullback could be a minor correction pending further movement on the upside, given the strength of the upward momentum.With the stock currently trading in the $0.81-$1.27 handle, it faces immediate support at the $0.81 mark, below which it could drop to the $0.6 handle, another critical support level. However, given that the stock is trading in a strong uptrend and recent developments, it awaits to be seen if it will touch the lows anytime soon. MRMD Daily ChartBefore we look at the reason behind renewed investor interest on MariMed Inc., let us look at what the company does in its pursuit of shareholder value.MariMed Inc. Business OverviewMariMed Inc. is a medical marijuana company that provides consulting services for the design and development of cannabis cultivation centers and dispensaries. Some of the services the company offers include cultivation application assistance, business acceleration solutions, and patient outreach services.The company is the center of attention in the cannabis space on the chief executive officer announcing that they plan to become an industry leader when it comes to state of the art compliant cannabis facilities.Under a laid out strategic plan, MariMed is seeking to win licenses and develop medical cannabis facilities on the East Coast. The company also plans to develop a unique brand of cannabis-infused products, utilizing the best scientific processes. Finally, the company hopes to establish a national distribution network to expand its market penetration in states that have legalized medical marijuana.

“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,” said Mr. Fireman.

$4 Million Capital FinancingMariMed plan to become a key player in the fast-growing cannabis business has received a major boost on the completion of a $4 million loan financing from Best Buds Funding Limited. The company plans to use the proceeds to buildout a medical cannabis cultivation and production facility in Maryland.

“With this transaction, MariMed has secured debt and equity of approximately $22.348 million this year, proving our ability once again to raise funds in a traditionally very difficult microcap environment coupled with the challenges of the medical cannabis industry,” stated Robert Fireman, CEO of MariMed,” said Mr. Fireman.

Also, the company has acquired a 137,500 sq. ft. industrial property at 167 John Verdant Blvd. where it plans to construct another state of the art medical cannabis cultivation and manufacturing facility. The company should be able to receive state licensing for its operations as well as other long-term monetary benefits such as tax revenues on the retention of 100 existing jobs on the site.Even as the company continues to explore ways of strengthening its cultivation and manufacturing capacity, it is also exploring new distribution channels for its products. Last month it inked a licensing agreement, whereby Canuvo Inc. is to manufacture and distribute its Kalm Fusion and Betty’s Eddie’s medical cannabis products in Maine. The deal is the second that the company has signed as part of its nationwide expansion initiative.Financial PositionMariMed Inc. financial position has been improving in recent quarter depicted by a 96% increase in revenue in the third quarter. The company attributes the improvement to the successful development of consumer and medical brands.Revenue for the first nine months came in at $4.5 million more than double revenues of $2.1 million reported the previous year. Operating income increased fivefold to $287,440 compared to $55,037 reported the prior year. Total assets increased 28% to $21.4 million marking the second quarter of sequential growth.

“In Q3, we achieved significant distribution gains and saw significant market uptake for Kalm Fusion, our new Betty’s Eddies, and the Tikun Olam clinically-proven medical strains. We are aggressively pursuing expansion into markets where we have facilities coming online and to other markets in distribution agreements, where we assure manufacturing to uniform quality standards,” said Mr. Fireman.

Bottom LineExpansion of the cannabis industry continues to attract more capital and sophisticated investors looking to take advantage of the expected growth. MariMed is already standing out as a company that any would be investors would wish to get involved in given that it has achieved a lot over a short period. With the U.S. legal cannabis industry predicted to be worth $50 billion by 2026, MariMed remains well positioned to generate significant shareholder value going forward.We will be updating our subscribers as soon as we know more. For the latest updates on MRMD, sign up below!Disclosure: We have no position in MRMD and have not been compensated for this article.Image courtesy of pancakenap via Flickr