MariMed Grows Revenue 81%, Triples Assets Year over Year for Q2 2018
Cannabis Facility Leasing, Management and Licensing Fees Power Q2 Results Continue record of year over year quarterly earnings growth since 2016
Raised $10.4 million during 6 months ended 6/30/18
NEWTON, MA, Aug. 15, 2018 (GLOBE NEWSWIRE) -- MariMed Inc. (OTCQB: MRMD), a multi-state professional cannabis organization, today reported Q2 2018 financial results, posting revenue of $2.9 million for the three months ended June 30, 2018, an 81% increase from the same period in 2017. MariMed continued on a solid trajectory of year over year revenue growth that it has achieved each quarter since 2016.
“Our results this quarter reflect the continued success of our clients under MariMed’s management and business strategy utilizing our proprietary brands and products while operating in our state-of-the-art cannabis cultivation, production, and dispensary facilities,” stated Robert Fireman, CEO of MariMed Inc.
“We continue to expand our replicable and scalable business models into more facilities and legal cannabis states. The recent opening and constant expansion of the medical cannabis program in Maryland has been fantastic. We believe this momentum for the Company will continue as we open our cannabis businesses in Massachusetts in Q3 this year.”
FINANCIAL HIGHLIGHTS
Revenue: Increased 81.2% to $2.9 million in Q2 2018, compared to $1.6 million in Q2 2017.
Assets: Tripled in size to $45.4 million at June 30, 2018 from $15.4 million at June 30, 2017.
EBITDA: Increased 50% to $1.02 million for three months ended June 30, 2018 from $682,000 for the comparable period ended 2017.
Debt Reduction: Reduced promissory note balances by $1.98 million for the six month period ended June 30, 2018 through the conversion of $1.28 million into common stock and the retiring of $700,000.
Cash on Hand: Increased to $5.1 million at June 30, 2018 from $1.3 million on December 31, 2017.
“Once again, we delivered double-digit revenue growth driven by our facility leasing and brand licensing fees and supply procurement services from our expanding operations,” stated Jon Levine, MariMed CFO. “This is further fueled by management fees and additional rental fees tied to the 67.6% increase in revenue generated by our clients for the three months ended June 30, 2018.”
For the three and six months ended June 30, 2018, the Company realized a net loss of approximately $6.3 million and $8.1 million, respectively. This compares to net income of approximately $505,000 and $614,000 for the comparable periods in 2017.
This is due to two non-cash items—issuance of stock options and warrants, and the settlements of debt via the issuance of common stock. These non-cash items had no effect on the operating earnings or liquidity of the Company. Excluding these non-cash items, net income for the three and six months ended June 30, 2018 was approximately $575,000 and $530,000, respectively.
OPERATIONS HIGHLIGHTS
Corporate:
Raised $10.4 million during the six months ended June 30, 2018 to fund operations, facility development and expansion of branded licensing. Acquired iRollie LLC, a manufacturer of branded cannabis products and accessories for consumers, and custom product and packaging for companies in the cannabis industry.
Expanded distribution of MariMed’s new Nature’s Heritage Cannabis™ branded strains and products to 45 dispensaries via MariMed licensed client Kind Therapeutics USA.
Began distribution from first harvests of Tikun Olam™ branded cannabis strains that have been proven effective in clinical research trials. Outlook for 2018
“We expect continued revenue growth from our existing business units in five states and have laid the groundwork for opportunities in Pennsylvania, New Jersey, Michigan, Florida and Ohio,” said Mr. Levine.
Tim Shaw, MariMed COO, added, “We are in the process of improving the look and feel of our Kalm Fusion™ and Betty’s Eddies™ brands of precision dosed cannabis infused products, and we are working on acquiring and strategically aligning with other quality brands to manufacture and distribute through our networks nationwide.”
Most recently MariMed secured the exclusive global licensing and distribution rights to a proprietary print technology that produces precision dosed, rapid delivery, dissolvable cannabis products at new levels of efficiency. MariMed also invested in and will be distributing “Sprout,” a CRM platform and SMS messaging engine for customer acquisition and retention to dispensaries in multiple states.
“We believe these initiatives help round out our robust product and service offering and will complement our organic growth in product sales of Nature’s Heritage Cannabis, Kalm Fusion, Betty’s Eddies, Tikun Olam and Lucid Mood brands as we continue build market share and enter additional states via our expanding national distribution network,” stated Mr. Fireman.
MariMed’s full financial results are available on MariMed’s website (ir.marimedadvisors.com/quarterly-reports) and at www.sec.gov
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