Connect with us

Business

Marimed Inc (OTCMKTS:MRMD) Retires $7.3 Million Short-term Debt: Robust Sales Of Adult-Use Programs Improves Cash Flow

Published

on

Marimed Inc (OTCMKTS:MRMD) restructured its debt to provide financial flexibility at reduced interest rates.

Marimed replaced the mortgage-backed financing of $13.0 million with a $4.8 million 5-year loan by offering one of its properties as collateral. It carries an interest of 6.5% annually and amortized for 20 years. The company also retired high interest (15%) short term debt of $7.3 million.

Adult-use programs promote cash flow

Marimed enjoys enhanced cash flow because of improved sales of its adult-use programs through Massachusetts and Illinois based businesses. The company also reported improvement in earnings from sales reported from its Maryland and Delaware based medical businesses.

Production is in full swing at New Bedford facility

Marimed completed New Bedford, Massachusetts manufacturing facility, and ramped up the production. Already two dispensaries that provide the adult-use program in Illinois are operating at full-swing. Marimed is finalizing the requirements to commence operations at its third facility based in Mt. Vermont.

Cannabis Control Commission (CCC) completed the inspection of adult-use New Bedford based production and cultivation facilities of Marimed. CCC expects to commence inspection of Middleborough based Panacea Wellness Dispensary in early August 2020.

CFO of Marimed, John Levine said obtaining favorable financing showcases the operational efficiency and its business strategy strength. The debt restructuring helped to strengthen its balance sheet. Also, improvements in revenues from Massachusetts and Illinois based businesses helped to improve free cash flow.

SVP (sales) of Marimed, Ryan Crandall said the expansion of its cultivation facility in New Bedford to 17 sophisticated cultivation rooms will improve monthly sales of products under Nature’s Heritage Brand.

Reports robust growth

Marimed posted a growth of 112% YoY to $7.5 million in revenues in Q1 2020. It reported better than expected sales by consolidating its cannabis businesses in IL and Massachusetts. The company posted an increase of 115% to $4.9 million in Q1 2020.

CEO of Marimed, Bob Fireman, said the company started posting better results beginning Q1 2020 following the consolidation of businesses and expects to report improved sales going forward. He further said the company commenced the sales of branded products and well-known products to Middleborough based Panacea Wellness Dispensary and wholesale markets in other regions.

*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.

FEATURED STORIES

Business2 weeks ago

Stem Holdings Inc (OTCMKTS:STMH) Reports A Growth Of 960% In Q3 2020: Unveils TJGardens Branded Tinctures

Post Views: 351 Stem Holdings Inc (OTCMKTS:STMH) posted an increase of 960% YoY to $6.7 million in Q3 2020. It...

Business2 weeks ago

Indiva Ltd (OTCMKTS:NDVAF) Signs Three Provincial Agreements: Expands Distribution Network To Eight Provinces: Reports A Robust Growth Of 1273.7% In Q2 2020 Revenues

Post Views: 378 Indiva Ltd (OTCMKTS:NDVAF) posted a robust growth of 1273.7% YoY to CAD 2.826 million in revenues in...

Business2 weeks ago

4Front Ventures Corp (OTCMKTS:FFNTF) Receives Approval From CCC For Mission Dispensary and Cultivation Facilities In Worcester: Will Commence Adult-Use Cannabis Sales

Post Views: 343 CCC (Cannabis Control Commission) in Massachusetts approved cultivation and processing facilities and Mission Dispensary of 4Front Ventures...

Business3 weeks ago

Pure Sunfarms, A Joint Venture Of Village Farms International Inc (NASDAQ:VFF), Ships Bottled Oil Products TO British Columbia

Post Views: 482 Pure Sunfarms, which is a Village Farms International Inc (NASDAQ:VFF) JV, commenced shipment of Cannabis 2.0 products...

INDUSTRIAL HEMP3 weeks ago

Health Canada Grants Cannabis 2.0 License To Abba Medix Corp, An Auxiliary Of Canada House Cannabis Group Inc (OTCMKTS:SARSF)

Post Views: 383 Abba Medix Corp., a wholly-owned subsidiary of Canada House Cannabis Group Inc (OTCMKTS:SARSF), received an amended cannabis...

Business3 weeks ago

SugarBud Craft Growers Corp (OTCMKTS:RLLRF) Receives An Amended License From Health Canada To Sell Dried Cannabis Products

Post Views: 431 SugarBud Craft Growers Corp (OTCMKTS:RLLRF) obtained an amended sales license from Health Canada. It allows the company...