MariMed, Inc. (“MariMed” or the “Company”) (CSE: MRMD) (OTCQX: MRMD), a leading multi-state cannabis operator focused on improving lives every day, today announced its intention to acquire the operating assets of Ermont, Inc. (“Ermont”), a medical licensed vertical cannabis operator, located in Quincy, MA. Ermont who is presently in receivership with a court appointed receiver Opus Consulting Partners LLC. Opus and MariMed negotiated this transaction with court approval. The acquisition, which is subject to approval by the Massachusetts Cannabis Control Commission (“CCC”), will provide the Company with its third dispensary in Massachusetts, substantially completing its buildout to the maximum allowable by state regulations. There is no assurance when, or if, the CCC will approve the acquisition.
“We are thrilled to announce this pending and accretive transaction. The proceeds for this acquisition come from our recently announced credit facility with Chicago Atlantic, the purpose of which is to accelerate our growth plan with transactions like this,” said Jon Levine, MariMed’s Interim Chief Executive Officer. “Massachusetts is a fantastic market and maximizing our footprint there has long been one of our top strategic priorities, and this agreement gets us significantly closer to that goal.”
The Company anticipates rebranding the dispensary as Panacea Wellness and will commence medical sales upon receipt of final approvals and closing conditions. MariMed will offer a curated selection of products across its award-winning brand portfolio, including Nature’s Heritage flower and concentrates, Betty’s Eddiesfruit chews, Bubby’s Baked soft-baked goods, Vibations: High + Energy drink mixes, and the full suite of its InHouse branded products. MariMed’s branded cannabis products are distributed to virtually all the dispensaries in the Massachusetts cannabis market, which generated $1.8 billion in total cannabis sales during 2022 according to the CCC.
The acquisition includes two Host Community Agreements with the city of Quincy, one of which is to conduct adult-use cannabis sales. MariMed is applying with the CCC for approval of adult sales and plans to expand the existing medical dispensary to accommodate the increased traffic. Additionally, the Company plans to repurpose the cultivation facility for its pheno-hunting activities. This will allow the Company to move pheno-hunting out of New Bedford and use the freed space for much needed additional capacity of their award-winning Nature’s Heritage flower.
“I would like to thank the MariMed team and all the professionals and agencies involved in the transaction, for all their hard work and partnership with me in facilitating this agreement,” said Jacques Santucci, President of Opus Consulting, the Receiver for Ermont, Inc. since late 2021. “The staff of Ermont has been instrumental to the business this past year, during this complex process and I know they will fit well within the MariMed team.”