MariMed Q1 2021 results reflect the highest sales and profitability of cannabis

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Core cannabis sales increased 230% $ 24.6 millionEBITDA rose by 764% $ 7.6 million Q1 2021 vs. Q1 2020

Significantly strengthened balance sheet and improved liquidity to support future growth

Conference call should take place May 18 at the 9:00 a.m. EDT

NORWOOD, Mass., May 17, 2021 / CNW / – MariMed, Inc. (OTCQX: MRMD) (“MariMed” or the “Company”), a leading multi-state cannabis operator focusing on health and wellness, today announced its financial and operating results for the expired Quarter known March 31, 2021.

Q1 2021 financial highlights

  • Achieved the highest quarterly cannabis core revenue and profitability quarter ever, and followed guidance for full year 2021.
  • Core revenue generated from cannabis by $ 24.6 millionan increase of 230% compared to $ 7.5 million in the first quarter of 2020.
  • Achieved EBITDA of $ 7.6 millionan increase of 764% versus $ 0.9 million in the first quarter of 2020.
  • Gross profit delivered on core sales of cannabis from $ 13.2 millionan increase of 171% versus $ 4.9 million in the first quarter of 2020.
  • Net income generated from $ 4.3 million or $ 0.01 per share compared to a net loss of $ 2.3 million or $ 0.01 Loss per share in the first quarter of 2020.
  • Increased working capital $ 17.1 million, An increase from $ 19.3 million from the negative working capital of $ 2.2 million, Year for year.
  • Delivered $ 6.8 million in cash flow from operating activities an increase of $ 7.2 million from the cash flows of $ 0.4 million in the first quarter of 2020.
  • Retired $ 16.6 million of debt, which is essentially all non-mortgage debt.

Q1 2021 operational highlights and current events

  • The continued improvements in revenue and EBITDA in the first quarter of 2021 reflect the groundwork benefits from activities in 2020, including:
    • The ongoing ramp-up of production at the New Bedford, MA Cultivation and production facilities led to an increase in wholesale sales in the robust Massachusetts Market.
    • Increase in the production and sales of branded products in Massachusetts resulted from the higher production and improved efficiency and improved equipment at the New Bedford Facility.
    • The company’s award-winning cannabis flower and product mix and great customer experience have helped increase the number of patients and customers in all pharmacies.
    • Extended leisure sales at MariMed’s Panacea Wellness Pharmacy in Middleboro, MA which put into operation September 2020.
    • The continued growth in recreational sales at MariMed’s Thrive pharmacies in Illinois that started on Anna and Harrisburg Stores in the first quarter of 2020 and on Mt. Vernon Business that opened late September 2020. In addition to serving the leisure market, the Anna and Harrisburg Pharmacies also serve the medical market.
    • A 108% increase in management fee income in Q1 2021 versus Q1 2020 due to the continued success of cannabis-licensed customers managed by the company in Delaware and Maryland.
  • Closed $ 46 million Equity financing from the Hadron Healthcare Master Fund. Previous funding ($ 23 million) was used to bolster the company’s balance sheet by essentially paying off all unsecured debt and improving liquidity. This equity also financed investments to expand the production of flowers and products. The remainder of the committed funds (up to $ 23 million) are available to complete the acquisition of additional government-licensed cannabis businesses.
  • The company recently opened its fourth leisure activity Illinois Pharmacy “Thrive Metropolis”. This is the only pharmacy in Metropolis that houses the Superman Museum and a regional tourist area on the Ohio River Illinois/.Kentucky Edge.
  • Expansion of the company’s award-winning product portfolio with the new SKU “Smashin Passion” for the vegan chew brand Betty’s Edibles ™ and other new SKUs for the company’s Kalm FusionR and Nature’s HeritageR brands. MariMed brands are now available in five states and the United States Puerto Rico.

“We are thrilled with our performance in the first quarter,” he said Bob firefighter, CEO of MariMed. “We have delivered significant sales growth and improved earnings to our shareholders. Our previously announced consolidation plan is working – we are building a strong, consolidated platform with great assets and brands that consumers love, led by experienced corporate and local state level management We have a new financial partner to support the company and enable management to achieve its growth goals. These key components are not only positive and profitable cash flow, but also position us for further expansion and consolidation as we become an MSO Top class. “

Q1 2021 Financial Summary
(in thousands of USD)


Q1 2021

Q1 2020

change





Core business with cannabis
revenue

$ 24,643

7,466 USD

230%





Gross income

$ 13,186

$ 4,868

171%





Business expense

$ 6,148

$ 3,861






EBITDA

$ 7,632

$ 883

764%





EBITDA margin

31%

12%






Working capital

$ 17,139

$ (2,183)


“MariMed continues to follow our previously announced sales and EBITDA projections for 2021 from $ 100 million and $ 30 million“said MariMed CFO Jon Levine. “As our balance sheet continues to strengthen and we achieve increasing sales when our production facility starts up production and the number of customers and patients in our pharmacies due to the robust leisure markets in Illinois and MassachusettsWe remain very confident in our leadership. “

For more information, see the company’s quarterly report on Form 10-Q for the past three months March 31, 2021, available at www.SEC.gov.

telephone conference

MariMed will host a conference call on May 18, 2021 to discuss these findings. Bob firefighter, Chief Executive Officer and Jon Levine, Chief Financial Officer, will be answering the call immediately 9:00 a.m. East Coast Time. A question-and-answer session follows the management presentation.

DATE:

Tuesday, May 18, 2021



TIME:

9:00 a.m. Eastern Time



WEBCAST:

Click here to access



DIAL-IN NUMBER:

1 (888) 664-6383



CONFERENCE ID:

94903675



REPETITION:

(416) 764-8677 or (888) 390-0541

Encore Replay Code: 903675 #
Available until 12:00 PM Eastern Time Tuesday, June 1, 2021

About MariMed

MariMed Inc., a multi-state cannabis operator, is committed to improving the health and wellbeing of people who use cannabinoids and cannabis products. The company develops, owns, and manages seeds to sell government-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and pharmacy operations. MariMed has an experienced management team who have achieved constant growth and success for the company and its managed businesses, keeping it at the forefront of cannabis science and innovation. Proprietary formulations developed by the company’s engineers are embedded in industry-leading products and brands, including Betty’s Eddies®, Nature’s Heritage ™, Bourne Baking Co. and Kalm Fusion®. Please visit marimedinc.com for more information.

Important caution with forward-looking statements:

This press release contains certain forward-looking statements and information regarding MariMed Inc. that are based on beliefs of the MariMed Inc. management and beliefs and information currently available to the company. These statements reflect the company’s current views with respect to future events, including estimates and projections of sales, EBITDA and its business, based on certain assumptions made by its management, including those described in this press release. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, including but not limited to changes in demand for the Company’s services and products, changes in law and 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 could differ materially from those stated herein as “hoped,” “expected,” “assumed,” “planned,” “estimated,” “preliminary,” “potentially”, “Expected” results described may differ. The company does not intend to update these forward-looking statements. None of the content on the websites mentioned here (even if a link is provided for your convenience) is included. The company assumes no responsibility for such content.

All trademarks and service marks are the property of their respective owners.

SOURCE MariMed Inc.

For more information: Corporate Contact – MRMD, Jon Levine, CFO, MariMed Inc .; Investor Relations, Rob Kelly, Mattio Communications, [email protected];; Media relations, Patrick Martin, Mattio Communications, [email protected]