MariMed Reports Q1 2021 Results – 230% increase in Revenue

MariMed, Inc. (OTCQX: MRMD) (“MariMed” or the “Company”), a leading multi-state cannabis operator focused on health and wellness, today announced its financial and operating results for the quarter ended March 31, 2021.

Q1 2021 Financial Highlights

• Achieved highest ever quarter of core cannabis revenue and profitability, tracking 2021 full year guidance. 
• Generated core cannabis revenue of $24.6 million, a 230% increase over $7.5 million in Q1 2020. 
• Achieved EBITDA of $7.6 million, a 764% increase over $0.9 million in Q1 2020. 
• Delivered gross profit on core cannabis revenue of $13.2 million, an increase of 171% over $4.9 million in Q1 2020. 
• Generated net income of $4.3 million or $0.01 per share, compared to a net loss of $2.3 million or $0.01 loss per share in Q1 2020. 
• Increased working capital to $17.1 million, an increase of $19.3 million from negative working capital of $2.2 million, year over year. 
• Delivered $6.8 million in cash flows from operations, an increase of $7.2 million from cash flows used in operations of $0.4 million in Q1 2020. 
• Retired $16.6 million of debt representing substantially all non-mortgage debt. 

Q1 2021 Operational Highlights and Recent Events

• The continued improvements in revenue and EBITDA levels in Q1 2021 reflect the benefits of groundwork from 2020 activities, including: 
  • The continuing ramp-up of production at the New Bedford, MA cultivation and manufacturing facility resulted in increases in wholesale sales into the robust Massachusetts market. 
  • Increased output and sales of branded products in Massachusetts resulted from the higher production and improved efficiencies and upgraded equipment at the New Bedford facility. 
  • The Company’s award-winning cannabis flower and product mix and favorable customer experience have contributed to the increased patient and customer counts at all dispensaries. 
  • Expanded recreational sales at MariMed’s Panacea Wellness dispensary in Middleboro, MA which commenced operations in September 2020. 
  • The continued growth of recreational sales at MariMed’s Thrive dispensaries in Illinois which started at the Anna and Harrisburg stores in Q1 2020 and at the Mt. Vernon store which opened in late September 2020. In additional to servicing the recreational market, the Anna and Harrisburg dispensaries also service the medical market. 
  • An increase of 108% in management fee income in Q1 2021 vs Q1 2020 from the continued success of the Company’s managed cannabis-licensed clients in Delaware and Maryland.
• Closed $46 million equity financing from Hadron Healthcare Master Fund. Funding to date ($23 million) was used to strengthen the Company’s balance sheet by retiring substantially all non-real estate secured debt and improving liquidity. This equity also funded capex to expand production of flower and products. The balance of the committed funds (up to $23 million) are available to complete the acquisition of additional state cannabis licensed business units. 
• Recently opened the Company’s fourth recreational Illinois dispensary, “Thrive Metropolis.” This is the only dispensary in Metropolis, the home to the “Superman Museum” and a regional tourism area located on the Ohio River and Illinois/Kentucky border. 
• Expanded the Company’s award-winning product portfolio, adding the new “Smashin Passion” SKU to the Betty’s Edibles™ vegan chews brand and other new SKUs to the Company’s Kalm Fusion^R and Nature’s Heritage^R brands. MariMed brands are now available in five states and Puerto Rico.

“We are thrilled with our Q1 performance,” said Bob Fireman, CEO of MariMed. “We delivered significant top-line revenue growth together with improved earnings to our shareholders. Our previously announced consolidation plan is working – we are building a strong, consolidated platform of great assets and brands that consumers love, led by deeply experienced corporate and local state level management. We have a new financial partner to support the Company and enable management to meet its growth objectives. Those key components, together with being cash-flow positive and profitable, positions us for further expansion and consolidation as we march forward toward becoming a top-tier MSO.”

“MariMed continues to track our previously announced 2021 revenue and EBITDA guidance of $100 million and $30 million, respectively,” said MariMed CFO Jon Levine. “As our balance sheet continues to strengthen, and we realize increasing revenue as our manufacturing facility ramps-up production and customer and patient counts increase in our dispensaries due to robust recreational markets in Illinois and Massachusetts, we remain highly confident in our guidance.”

For further information, please refer to the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2021, available at www.SEC.gov.

Conference Call

MariMed will host a conference call on May 18, 2021, to discuss these results. Bob Fireman, Chief Executive Officer, and Jon Levine, Chief Financial Officer, will host the call starting at 9:00 a.m. Eastern time. A question-and-answer session will follow management’s presentation.