NORWOOD, Mass., Jan. 5, 2022 (GLOBE NEWSWIRE) – PRESS RELEASE – MariMed Inc., a multi-state cannabis company, announced today that it has entered into a definitive agreement to acquire Kind Therapeutics USA, LLC, a. completed vertically integrated cannabis business in Maryland. The transaction is subject to customary closing conditions, including regulatory approvals.
The transaction will lead to the third state after Massachusetts and Illinois where MariMed has acquired, managed and developed a licensed cannabis business. Upon acquisition, Kind’s financial results must be reported by the Company on a consolidated basis. The acquisition of Kind will also mark the successful execution of MariMed’s strategic growth plan to consolidate the numerous state-owned cannabis companies that it has organically developed and managed.
Kind, who holds cannabis licenses for cultivation and production and a provisional license to run a pharmacy, is currently leasing from Mari Holdings MD, LLC, a MariMed subsidiary, a 180,000 square foot growing and processing facility in Hagerstown that MariMed developed. Mari Holdings MD, LLC also owns and develops a child pharmacy in Annapolis, expected to open in early 2022. Under the direction of MariMed, Kind successfully manufactures and distributes cannabis and cannabis products to Maryland’s robust cannabis wholesaler, which has grown to 103 pharmacies. These products include MariMed’s award-winning products and brands, including Nature’s Heritage Craft Flower, Betty’s Eddies Fruit Chews, and k FUSION chewable tablets. Betty’s Eddies is one of the best-selling edible brands in the state.
“I am pleased to announce our agreement to acquire Kind, which operates in one of the leading medical cannabis programs and markets in the country,” said Bob Fireman, MariMed’s chief executive officer. “This takeover will bring MariMed another year of transformation in 2022, building on two consecutive years with more than 100% cannabis sales and adjusted EBITDA growth.”
The total purchase price to be paid for the child in the form of cash and borrower’s note will be $ 20 million. In addition, the company is acquiring the minority interests of one of the current owners of Kind in two of the company’s subsidiaries that own cannabis facilities in Maryland and Delaware for a total of $ 2 million. In addition, upon completion of these transactions, all litigation related to Art will be unconditionally dismissed.
Maryland’s legal medical cannabis program currently has more than 139,000 registered patients, and the state receives more than 200 medical cannabis card applications daily, according to the Maryland Medical Cannabis Commission (MMCC). Maryland’s medical cannabis program was well on its way to generating more than $ 500 million in sales in 2021. According to Cowen Research, Maryland’s medical cannabis program has some of the highest rates of registered medical users, incidence use, and spending, with a population of 6.2 million. on a per capita basis, under all legal medical cannabis programs in the United States.