MariMed Receives Maryland State Approval for Transfer of Ownership of Kind Therapeutics USA

Rhea-AI Summary

MariMed Inc. (OTCQX: MRMD) has received approval from the Maryland Medical Cannabis Commission to acquire 100% ownership of Kind Therapeutics U.S.A., LLC. This decision was made during the MMCC’s Full Commission Meeting on April 13, 2022. Following the completion of the transaction, Kind will become a wholly owned subsidiary, consolidating its financials with MariMed’s. Kind operates a cannabis cultivation facility in Maryland and is developing a dispensary. Maryland's medical cannabis program has over 139,000 registered patients and generated over $500 million in sales in 2021.

Positive

• Approval to acquire Kind Therapeutics enhances MariMed's market position.
• Kind's operations will be consolidated, potentially increasing revenue.
• Maryland’s medical cannabis program is robust with over 200 new applications daily.

Negative

• None.

NORWOOD, Mass., April 14, 2022 (GLOBE NEWSWIRE) -- MariMed Inc. (OTCQX: MRMD) (“MariMed” or the “Company”), a leading multi-state cannabis operator focused on improving lives every day, today announced that the Maryland Medical Cannabis Commission (MMCC) has approved the transfer of 100% of the ownership of Kind Therapeutics U.S.A., LLC (“Kind”), a leading vertically integrated cannabis business to MariMed Inc.

The approval was granted during the MMCC’s Full Commission Meeting on Wednesday, April 13, 2022. The parties will now move forward to complete the closing of the transactions previously announced. Upon closing, Kind will become a wholly owned subsidiary of MariMed and its financials will be consolidated with MariMed’s in the Company’s public filings.

Kind operates under its cannabis cultivation and production licenses in its Hagerstown, MD manufacturing plant. It is completing development of a dispensary in Anne Arundel County under its provisional dispensary license. Kind’s cannabis products, including MariMed brands, are distributed to the approximately 100 medical dispensaries in the Maryland medical cannabis program. Maryland’s medical cannabis program has more than 139,000 registered patients and, according to the MMCC, the state receives more than 200 applications for medical cannabis cards every day. Maryland’s medical cannabis program generated more than $500 million in sales in 2021. According to Cowen Research, with a population of 6.2 million, Maryland’s medical cannabis program boasts some of the highest rates of registered medical consumers, incidence usage and spending, on a per capita basis, among all legal medical cannabis programs in the United States. The state legislature recently approved a November 2022 ballot referendum for voters to approve an adult use cannabis program.

About MariMed
MariMed Inc., a multi-state cannabis operator, is dedicated to improving lives every day through its high-quality products, its actions, and its values. The Company develops, owns, and manages seed to sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and dispensary operations. MariMed has an experienced management team that has produced consistent growth and success for the Company and its managed business units. Proprietary formulations created by the Company’s technicians are embedded in its top-selling and award-winning products and brands, including Betty's Eddies, Nature’s Heritage, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy. For additional information, visit www.marimedinc.com.

Investor Relations Contact:
Steve West
Vice President, Investor Relations
Email: ir@marimedinc.com

Media Contact:
Trailblaze PR
Email: marimed@trailblaze.co

Company Contact:
Howard Schacter
Chief Communications Officer
Email: hschacter@marimedinc.com

FAQ

What recent acquisition did MariMed Inc. announce?

MariMed Inc. announced the acquisition of Kind Therapeutics U.S.A., LLC following approval from the Maryland Medical Cannabis Commission.

When was the acquisition approval for Kind Therapeutics granted?

The acquisition approval was granted on April 13, 2022, during the MMCC’s Full Commission Meeting.

How many registered patients are there in Maryland’s medical cannabis program?

Maryland's medical cannabis program has over 139,000 registered patients.

What were the sales figures for Maryland’s medical cannabis program in 2021?

Maryland’s medical cannabis program generated more than $500 million in sales in 2021.

What will happen to Kind Therapeutics after the acquisition by MariMed?

After the acquisition, Kind Therapeutics will become a wholly owned subsidiary of MariMed and its financials will be consolidated.