MariMed secures $46 million in new funding for expansion and debt relief – MARIMED INC by MariMed Inc. (MRMD)
Cannabis Company MariMed Inc. (OTCQX: MRMD) closed a $46 million financing facility Tuesday with Hadron Healthcare Fund.
Beacon Securities Ltd. advised the transaction.
why it matters: The initial tranche, $23 million – $3.70 per Series C Preferred Share plus a common stock purchase warrant – will be used by MariMed to repay long-term debt and expand its cannabis facilities.
“We are delighted to have been selected by Hadron as the preferred partner to make this strategic investment in the US MSO industry,” MariMed CEO Bob Fireman said in a prepared statement.
The funds should strengthen MariMed’s balance sheet and allow the Norwood, Mass.-based company to make acquisitions, Fireman added.
Hadron has previously invested in cannabis companies, touting an investment portfolio valued at over $300 million.
Hadron CIO Marco D’Attanasio praised MariMed, touting its potential as a “profitable” multi-state operator.
And after: Expect MariMed to report fourth quarter 2020 financial results soon. It may also be seeking new cannabis licenses. So far, MariMed has successfully won 17.
The company also hopes to develop over 300,000 square feet of growing and production space.
In Novemberthe company released an earnings report showing that core cannabis revenue hovered at $13.5 million for the third quarter.
This is a 220% increase compared to the same quarter of 2019.
Gross profit for the quarter jumped 221% to $8.7 million from $2.7 million in the third quarter a year earlier.
Marimed closed Tuesday at 80 cents per share, up about 4%.