MariMed Inc. (MRMD:OTCQX) a leading multi-state cannabis and hemp operator focused on health and wellness, announced today that their Illinois dispensaries in Anna and Harrisburg saw a significant uptick in sales on the first day under new laws to legalize recreational use of cannabis throughout the state.
In May 2019, the Illinois General Assembly passed the HB 1438 law legalizing recreational cannabis use and sale in the state for adults which became effective January 1, 2020. Illinois is the 11th state in the nation to allow the sale of recreational marijuana. Thirty-three states allow the sale of marijuana for medical use, which Illinois legalized in 2013. Industry analysts estimate the new legal market for recreational, or adult-use cannabis, could exceed $2 billion annually. This new market is in addition to a surging medical marijuana market, which, according to Illinois government sources nearly doubled in size and number of patients during 2019, exceeding $200 million and nearly 90,000, respectively.
According to Marijuana Business Daily, the maximum number of adult-use dispensaries allowed in Illinois in 2020 is 185, or 1.5 retail stores per 100,000 residents. By comparison, Oregon currently has 15.7 recreational marijuana retailers per 100,000 residents. MariMed Inc. plans to open two additional Illinois dispensaries in the coming year.
MariMed’s dispensaries in Anna and Harrisburg, which operate under the Thrive brand, saw customers waiting outside for hours before opening. MariMed worked hard prior to January 1st to prepare for expected demand by recreational users while ensuring valued medical customers would still receive the attention, service and access to products that they have come to expect. It was positive to see demand appearing to be as high in rural areas as in the more concentrated and competitive urban areas of the state.
According to Gorgi Naumovski, MariMed’s Director of Operations in Illinois, “The customers were thrilled to legally purchase recreational cannabis in Illinois for the first time. This was the single busiest day in over 3 years of operations with customer count more than 5 times that of a normal day. We are excited for the industry and what the future holds for the state of Illinois and MariMed.”
During 2019, under MariMed management, revenue from sales to medical patients grew significantly. With the addition of recreational clientele, MariMed is expected to realize significant revenue growth in 2020 which will be reflected in MariMed’s reported financial results.
MariMed CEO, Bob Fireman, noted that, “We are excited to see the response by the people of Illinois to the new law. Gorgi and his team led by Rosie Naumovski, worked diligently servicing our medical patients while preparing for the recreational launch in our two dispensaries. They are in the process of developing two additional adult use dispensaries in Illinois allowed under our licenses. They have been valuable advocates for the Illinois cannabis programs from their inception providing guidance to both state and local authorities. We are proud to have them as part of the MariMed team. With our consolidation on track, MariMed’s revenue from these licensed businesses will now be included in our financial results in 2020 which in turn, will generate greater long-term value for our shareholders.”
MariMed Inc., a multi-state cannabis operator, is dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products. The company develops, owns, and manages seed to sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products and dispensary operations. MariMed has an experienced management team that has produced consistent growth and success for the company and its managed business units.
The company is at the forefront of science and innovation through research developed by its lab technicians and medical advisors resulting in industry-leading products and brands, including “Kalm Fusion” and “Betty’s Eddies.” These precision dosed products are focused on specific medical symptoms and are licensed and distributed across the country.
In 2019, with the enactment of the 2018 US Farm Bill, MariMed formed MariMed Hemp, a wholly owned subsidiary, to leverage its seed to sale cannabis platform and experience into the emerging hemp-based CBD industry. The company acquired a significant stake in Kentucky-based GenCanna Global, Inc., a national and international leading cultivator, producer and distributer of hemp and GMP quality CBD oils and isolates. With this strategic relationship, MariMed Hemp has developed and is marketing a portfolio of CBD brands and products to multiple retailers and direct to consumers both domestically and internationally. For additional information, visit marimedinc.com.
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 guaranteeing 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.
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Jon Levine, CFO
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