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MariMed Inc. Reports Record Q2 2019 Results; Revenue Up 774% to $25.7 Million, Net Income of $4.7 Million

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NORWOOD, Mass., Aug. 12, 2019 (GLOBE NEWSWIRE) — MariMed Inc. (MRMD), a leading multi-state cannabis and  hemp operator focused on health and wellness, reported record results for both the three and six month periods ended June 30, 2019. Results reflect consistent, dynamic growth in the company’s cannabis businesses as well as momentum in its MariMed Hemp subsidiary, which posted significant initial transactions during the second quarter. Financial comparisons are to the same year-ago periods unless otherwise noted.Q2 2019 Financial HighlightsRevenues increased 774.0% to $25.7 million.Revenue from cannabis business increased 24.5% to $3.7 million.Gross profit up 341.1% to $8.9 million.Net income increased to $4.7 million.Adjusted EBITDA totaled $6.0 million (see definition of this non-GAAP measure and the reconciliation to GAAP, below).Q2 2019 Operational HighlightsMariMed’s core cannabis businesses continued to demonstrate organic growth fueled by expansion of facilities and branded product lines, both in-house and licensed brands. Subsequent to the close of the quarter, MariMed announced a licensing agreement with Denver-based Binske to distribute its popular and diverse cannabis products in several important markets east of the Mississippi.MariMed Hemp, the company’s CBD-focused subsidiary, delivered its first services revenues, the first in a series of sales of hemp seeds to GenCanna Global valued at a total of $25.2 million, with $22.0 million recognized in the second quarter. Subsequent to the end of the quarter, the Company completed a second round of hemp seed sales to GenCanna totaling $8.0 million. (MariMed holds a 33.5% stake in GenCanna Global, a Kentucky-based national leader in seed-to-sale of GMP-quality, hemp-derived CBD).MariMed Hemp began building out its branded product line by acquiring 70% of MediTaurus, a leading international hemp-derived CBD products company. MediTaurus’ Florance™ brand of CBD health and wellness products are sold in the U.S. and Europe through online distributors, wholesalers, pharmacies and physicians. The terms include the acquisition by MariMed Hemp of the remaining 30% of MediTaurus in June 2020MariMed acquired a minority interest in Terrace Inc., a Canadian-based operator focused on the acquisition and development of international cannabis assets in both Europe and South America. Terrace is in the process of becoming a public company traded on the Toronto Venture Exchange.Dr. Jokūbas Žiburkus, MediTaurus co-founder and CEO, was appointed chief innovation officer. An award-winning professor of neuroscience with more than 25 years of biomedical training and experience, Dr. Žiburkus is an internationally recognized expert on the health effects of cannabis.MariMed appointed David Allen as a new independent member of the company’s board of directors and chairman of the audit committee. He brings to MariMed more than 22 years of experience as a director, CEO and CFO of public and private companies.The company relaunched its website at www.marimedinc.com, highlighting MariMed’s product line expansion and broader scope of operations.Management Commentary“The second quarter of this year marks a milestone,” said company president and CEO, Bob Fireman. “Both of our business divisions—cannabis and hemp—delivered this quarter to drive record results.“Our core cannabis businesses continued to execute well, delivering organic growth and profitability as they have for several quarters, with our second largest grow facility yet to come on line (Massachusetts, projected to receive final approvals this month).  The ongoing consolidation of our operations in six states will significantly expand revenues beyond simple organic growth in the second half of this year and in 2020 as this process completes, with acquisitions and transfers of licenses subject to state approvals.“MariMed Hemp, launched in January of this year, benefited from past investments, notably in GenCanna Global, first announced in October of last year. Our sales of hemp seed could become a seasonal opportunity in coming years while demand remains high. MariMed Hemp is developing and marketing its new Florance™ brand and has others new brands in development.  These products will be marketed to multiple channels of retailers and direct to consumers.  MariMed Hemp recently announced the launch of the Hemp Engine™, its “store within a store” marketing platform for retailers.“We now operate in two dynamic industries.  The relationships we have built by being a reputable, dependable business partner give us unique access to business opportunities where our ability to move quickly delivers significant shareholder value.  We will continue to invest in people, technology, and brands to dramatically grow shareholder value over time.”Second Quarter 2019 Financial SummaryRevenues for the second quarter of 2019 were $25.7 million, up 774% compared to $2.9 million in the same year-ago quarter. The increase in revenue was primarily the result of hemp seeds sales totaling $25.2 million dollars, of which $22.0 million was recognized in the quarter. The remaining revenue is expected to be recognized in the third and fourth quarters of 2019 upon payment from the buyer. Revenues excluding the hemp seed sales increased 24% to $3.7 million versus the year-ago quarter.Gross profit for the second quarter of 2019 was $8.9 million or 34.8% of revenues, up 341.1% from $2.0 million or 68.9% of revenues in the same quarter from a year ago. Gross profit in MariMed’s core businesses as a percentage of revenues increased to 72.4% in the second quarter of 2019 from 68.9% in the year-ago quarter. Net income for the second quarter of 2019 was $4.7 million or $0.02 per fully diluted share, improving from a net loss of $393,000 or $(0.00) per basic share in the year-ago quarter.Adjusted EBITDA increased 491.7% to $6.0 million from $1.0 million in the year-ago quarter.First Half 2019 Financial SummaryRevenues for the first half of 2019 were $29.2 million, an increase of 481.4% from $5.0 million in the first half of 2018. The increase included the large sales of hemp seeds during the second quarter, as discussed above.  Gross profit for the first half of 2019 was up 247.7% to $11.2 million or 38.3% of revenue, compared to $3.2 million or 64.1% of revenues in the first half of 2018. Gross profit as a percentage of revenue was affected primarily as the result of the contracted margin and required accounting treatment of the hemp seed sales. Gross profit as a percentage of revenues from MariMed’s core businesses increased in the first half of 2019 to 68.4% versus 64.1% in the same year-ago period. Net income for the first half of 2019 was $4.8 million or $0.02 per fully diluted share, improving from a net loss of a $2.2 million or $(0.01) per basic share in the first half of 2018. Adjusted EBITDA increased 365.4% to $6.3 million from $1.4 million in the same year-ago period.About MariMed
MariMed Inc. is dedicated to improving health and wellness with the highest quality hemp and cannabis products. The company offers a full range of cannabis products and operates state-of-the-art cannabis dispensaries in six states. The MariMed Hemp division is focused on the development of industrial hemp-derived CBD products.
MariMed owns a significant stake in Kentucky-based GenCanna, a recognized genetic innovator in industrial hemp. MariMed recently acquired controlling interest in MediTaurus, a purveyor of high-quality CBD wellness products in the U.S. and Europe under the Florance™ brand.Across its branded products, MariMed remains at the forefront of precision dosed products for the treatment of specific medical symptoms. It currently distributes its branded hemp and CBD products in select states and is expanding licensing and distribution to additional markets that includes thousands of dispensaries, pharmacies and wholesalers.For more information, visit marimedinc.comFacebook: MariMedIncImportant 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 guarantees of 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.             
All trademarks and service marks are the property of their respective owners.  Company Contact
Jon Levine, CFO
MariMed Inc.
Tel (781) 559-8713
Media & Investor Contact
Ronald Both or Jonathan Leuchs
CMA  
Tel (949) 432-7566
MRMD@cma.team
Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, MariMed management believes that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between the company’s core business operating results and those of other companies, as well as providing its management with an important tool for financial and operational decision making and for evaluating the company’s own core business operating results over different periods of time.The company’s adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in the company’s industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring or unusual items. The company’s adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. MariMed management does not consider adjusted EBITDA to be a substitute for or superior to the information provided by GAAP financial results.The following table reconciles GAAP net (loss) income attributable to common stockholders and adjusted EBITDA:  

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/12/1900412/0/en/MariMed-Inc-Reports-Record-Q2-2019-Results-Revenue-Up-774-to-25-7-Million-Net-Income-of-4-7-Million.html?f=22&fvtc=5&fvtv=41223728

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AGCO releases results of the second cannabis lottery: 42 applicants notified to apply for a cannabis Retail Store Authorization in Ontario

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TORONTO, Aug. 21, 2019 (GLOBE NEWSWIRE) — The Alcohol and Gaming Commission of Ontario (AGCO) has released the results of the cannabis retail store lottery draw it held on August 20, 2019. The lottery provided those who met pre-qualification requirements for one of the 42 new store authorizations announced by the Government of Ontario on July 3, 2019, an opportunity to be selected to apply for one.
4,864 eligible expressions of interest were included in the lottery draw, which was overseen by a third-party fairness monitor. The AGCO has notified the following 42 selected applicants that they may now apply for a cannabis Retail Operator Licence and a Retail Store Authorization. Applicants have until August 28, 2019 to do so, at which point the AGCO will undertake its full eligibility and licensing review. The AGCO will only licence applicants and authorize stores that meet all legal and regulatory requirements.SELECTED APPLICANTS AND THEIR PROPOSED STORE LOCATIONSEast Region:GTA Region:North Region:Toronto Region:West Region:ADDITIONAL INFORMATIONAllocation lottery resultsSummary of lottery entries received by regionCannabis Retail Store Allocation Lottery RulesRegistrar’s Standards for Cannabis Retail StoresAbout the AGCO
The Alcohol and Gaming Commission of Ontario (AGCO) is an Ontario provincial regulatory agency reporting to the Ministry of the Attorney General (MAG). The agency was established on February 23, 1998 under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996.
The AGCO is responsible for regulating the alcohol, lottery and gaming, horse racing and private cannabis retail sectors in accordance with the principles of honesty and integrity, and in the public interest.Media Contact:
Raymond Kahnert, Senior Advisor, Communications
(416) 326-3202, media@agco.ca 
FACT SHEETOn July 3, 2019, the Government of Ontario announced 50 new cannabis retail store authorizations would be made available. Of these 50 new stores, the AGCO will allocate up to 42 authorizations to applicants selected by lottery and eight to stores on First Nations reserves.Applicants who wished to participate in this lottery had to meet pre-qualification requirements, including confirmation from a bank, credit union, or caisse populaire that the applicant has the financial capacity to obtain $250,000 in cash or cash equivalents; confirmation from a bank, credit union, or caisse populaire that the applicant can obtain a Standby Letter of Credit in the amount of $50,000 within five business days of being notified of their selection; confirmation that the applicant has secured a suitable retail space, which will be available to them for operating a cannabis retail store no later than October 2019The required bank letters were provided to the lottery applicants by over 25 banking institutionsOnce the AGCO receives Retail Store Authorization applications from those selected in the lottery, residents of the community in which a store is proposed to be located will have an opportunity to provide written submissions if they believe the location of the store is not in the public interest, as defined by Ontario Regulation 468/18 made under the Cannabis Licence Act, 2018It is anticipated that stores will begin to open starting in October 2019, as they are readyThe AGCO has placed the applicants not selected in the lottery on Wait Lists for each Region, based on the order in which they were drawn. Applicants on the Wait List will be moved to the selected list if those ahead of them are found to be ineligible for a licence/authorization or are otherwise disqualifiedIn the future, if the Government proceeds with additional retail store allocations before moving to an open marketplace, any such allocations may be based on the results from this lottery

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904954/0/en/AGCO-releases-results-of-the-second-cannabis-lottery-42-applicants-notified-to-apply-for-a-cannabis-Retail-Store-Authorization-in-Ontario.html?f=22&fvtc=5&fvtv=41223728

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Infinity Supercritical Announces SDR Model X For Continuous Feed Hemp Oil Processing

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MADISON, Wis., Aug. 21, 2019 (GLOBE NEWSWIRE) — Infinity Supercritical LLC is introducing its industrial scale hemp oil processors that use water to extract full spectrum oil in under a second. Our modular botanical oil processors can extract oil from your organic hemp, with a capacity of 10,000 lbs to 100,000 lbs per day. The continuous feed process is the only in the industry that uses water as the solvent, to produce a eco-extracted oil, that can be labeled with organic and green branding.
Less than 10 percent of the 2019 hemp crop will be processed at fall harvest from the lack of botanical extractors. Based on the deluge of calls we get from farmers, wanna-be processors, and equity groups, there will be a huge bottleneck at this years fall hemp harvest.Hemp became Federally legal in 2019, which had farmers scrambling to get crops in the ground, many at the last minute in late spring. The lack of coordinated state regulation nationwide has resulted in a patch-work of states under cultivation, some more than ten-fold increase in acreage planted from last year.While many smaller fly-by-night processors turn to ethanol extraction. If not done properly, it produces a poor quality full spectrum hemp CBD oil. A full spectrum oil provides the most benefits to the body. Many operators choose to use activated carbon to filter out the green bitter tasting chlorophyll, which unfortunately also filters out the CBDs. The consumer may not know the difference when purchasing full spectrum oil, aside from being turned off from lackluster results.The result? Much of the hemp crop will go unprocessed, and some will go into long term storage and degrade.Infinity Supercritical LLC offers innovative one-touch processing technology using water as the solvent, and a visionary future for clean and quality full spectrum hemp CBD oil extraction.  Please visit https://sonicextractor.com for more information.G. Giese | CEO | Infinity Supercritical LLC | greg@infinitysupercritical.com

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904928/0/en/Infinity-Supercritical-Announces-SDR-Model-X-For-Continuous-Feed-Hemp-Oil-Processing.html?f=22&fvtc=5&fvtv=41223728

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CURE Pharmaceutical [OTCQB: CURR] Takes First Step To Secure Hemp CBD Supply Chain by Partnering with Fytiko Farms 

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OXNARD, Calif., Aug. 21, 2019 (GLOBE NEWSWIRE) — CURE Pharmaceutical (OTC: CURR), an innovative drug delivery and development company, today announced it has signed a deal with Oklahoma-based hemp grower Fytiko Farms. The deal gives CURE direct, guaranteed access to high-quality plant material for exclusive use in its proprietary oral thin film (OTF) drug delivery system, CUREfilm®.
“The agreement with Fytiko Farms is a crucial step in CURE’s effort to secure our CBD supply chain and also includes preferred pricing for CURE,” said Rob Davidson, CEO of CURE Pharmaceutical. “This puts CURE in a strategic position to further deliver on our mission to bring the best products to our customers and accelerates our product commercialization. Our next step will be securing a relationship with vendors for the extraction process leveraging our extraction patents.”The deal provides access to high-quality organic hemp extracts for use in CURE products through strain improvement, cannabinoid extraction process development, biomarker identification and quality control testing.“Partnering with an industry leader like CURE allows us to expand into more markets and grow our production capabilities,” said Joe Dan Rogers, CEO of Fytiko Farms. “This partnership supports our main business of growing hemp by providing a production hub for local farmers and marketing our high-quality hemp oil and other byproducts for use in CURE’s hemp-based products.”Fytiko Farms is an innovative company focused on industrial hemp production, cultivation, seed and clone production and sale and the processing and sale of the various by-products from the hemp plant. In 2019, Fytiko Farms was licensed to plant in Oklahoma, utilizing select varieties specifically targeted for their genetics.About CURE Pharmaceutical
CURE Pharmaceutical is a vertically integrated drug delivery and development company committed to improving drug efficacy, safety, and the patient experience through its proprietary drug dosage forms and delivery systems. CURE has a full-service cGMP manufacturing facility and is a pioneering developer and manufacturer of a patented and proprietary delivery system (CUREfilm™), one of the most advanced oral thin film on the market today. CURE is developing an array of products in innovative delivery platforms and partners with biotech and pharmaceutical companies. CURE has positioned itself to advance numerous therapeutic categories, including the pharmaceutical cannabis sector with partnerships in the U.S., Canada, and Israel. The company’s mission is to improve people’s lives by redefining how medicines are delivered and experienced.
For more information about CURE Pharmaceutical, please visit its website at www.curepharma.com.About Fytiko Farms
Fytiko Farms is an innovative company focused on industrial Hemp cultivation, seed and clone production and sale and processing of the various byproducts from the Hemp plant. Fytiko Farms collaborates Murray State College to develop and promote new technologies through research, education, and collaboration in the creation of stable, reliable seed stock for industrial hemp and the cultivation of industrial hemp inside the State of Oklahoma as permitted by the Oklahoma Industrial Hemp Agriculture Pilot Program. Fytiko Farms is licensed to plant and cultivate up to 100 acres for 2019.
For more information about Fytiko Farms, please visit its website at www.fytikofarms.com.This press release contains forward-looking statements that involve risks and uncertainties. There are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the ability to successfully market our products, the difficulty in predicting the timing or outcome of other product research and development efforts, potential product characteristics and indications, marketing approvals and launches of other products, the impact of pharmaceutical industry regulation, the impact of competitive products and pricing, the acceptance and demand of new pharmaceutical products, the impact of patents and other proprietary rights held by competitors and other third parties and the ability to obtain financing on favorable terms. The forward-looking statements in this press release reflect the Company’s judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of our securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.Contact:
Ashley Ray
aray@olmsteadwilliams.com
310.824.9000 (office), 919.630.5508 (cell)

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904761/0/en/CURE-Pharmaceutical-OTCQB-CURR-Takes-First-Step-To-Secure-Hemp-CBD-Supply-Chain-by-Partnering-with-Fytiko-Farms.html?f=22&fvtc=5&fvtv=41223728

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