MariMed Inc. CEO Jon Levine provided insights into the company’s operations, growth strategies, and financial outlook during a recent fireside chat. The discussion, hosted by senior analyst Pablo Zuanic, offered valuable information for cannabis investors.
Levine highlighted MariMed’s strong Q2 2024 performance, reporting a year-over-year sales growth guidance of 5% to 7%. Despite industry-wide pressures, the company has achieved 11% year-to-date growth, driven by its wholesale business in Illinois, Maryland, and Massachusetts.
“Our revenue continues to outpace the industry, and we are on track to meet our guidance for the year and beyond,” Levine stated. While strategic growth has resulted in short-term pressure on margins and EBITDA, Levine explained that investments in new facilities, such as doubling the growth capacity in Maryland, will contribute to long-term profitability later this year.
MariMed is aggressively expanding its footprint across key states. In Maryland, the company is set to open its second store, projected to generate $10 million in annual revenue. The company also secured a processing license in Missouri, with plans to introduce its popular brands, such as Betty’s Eddies, to the market in the coming quarter. In Massachusetts, MariMed has maintained its market share in a stagnant market, capitalizing on its strong brand recognition. “Our wholesale business in Massachusetts continues to surprise everyone with its growth, thanks to our brand recognition and the quality of our products,” Levine emphasized.
MariMed is also expanding its retail presence in Illinois, with plans to add five more stores to its existing five. In Ohio, the company is gearing up for expansion as the state recently launched adult-use cannabis sales.
Levine discussed MariMed’s active pursuit of mergers and acquisitions (M&A) and licensing agreements. While the company is cautious about overpaying for licenses, it is actively seeking opportunities to expand its presence in Ohio, Missouri, and other states. Levine also mentioned the company’s applications for licenses in New York, Texas, and Virginia. MariMed is exploring licensing opportunities in states where it does not currently operate, such as Rhode Island and Puerto Rico. However, Levine stressed the importance of finding the right partners to maintain the high quality and consistency of MariMed’s products.
During the discussion, Levine addressed questions regarding former President Donald Trump’s recent comments on cannabis rescheduling. Levine expressed optimism, noting that both Democrats and Republicans are increasingly discussing cannabis rescheduling. “I do think that rescheduling will happen sometime in the next 12 months,” he said, acknowledging the slow pace of government action.
The upcoming Benzinga Cannabis Capital Conference in Chicago, scheduled for October 8-9, will feature these key issues. The conference will provide insights into the wave of weed legalization and its implications for investing in the cannabis industry. Attendees will have the opportunity to hear directly from top executives, investors, advocates, and policymakers.
