MariMed Primed to Meet Soaring Demand as Hemp CBD Era Begins
- MariMed anticipates significant increase to its EBITDA in coming years
- MariMed well-positioned with strategic partnership and long-term supply agreement with leading U.S. hemp producer, GenCanna Global
NORWOOD, MA, Dec. 20, 2018 (GLOBE NEWSWIRE) -- The Hemp CBD Era officially begins with the 2018 Farm Bill signed into law today by President Trump, according to MariMed, Inc. (OTCQB: MRMD), a multi-state cannabis operator and hemp development and distribution company. The landmark legislation, which legalizes industrial hemp, opens doors for MariMed, GenCanna Global (GenCanna) and other US businesses to meet soaring demand for Hemp CBD that analysts expect to grow from today’s $800 million to $22 billion by 2022. For the past few years, demand for CBD has far outpaced supply, as consumers discovered CBD’s efficacy for treating a range of medical conditions, including pediatric epilepsy, some cancers (and painful cancer treatments), acute anxiety, arthritic and chronic pain, high blood pressure, and various skin conditions, including acne.
“Legal hemp has the potential to reshape America’s health and wellness landscape,” said Charles Finnie, MariMed’s Chief Strategy Officer. “CBD will likely become a separate industry from the highly regulated, state-legal cannabis industry that remains illegal at the federal level. Lifting federal restrictions on hemp cultivation, research and distribution will enable advanced medical research, as well as increased agricultural production of pharmaceutical-quality CBD products that avoid the side effects and addiction risks of some pharmaceuticals .”
MariMed’s recent $30 million investment in GenCanna, one of the nation’s largest hemp cultivators and processors, enables GenCanna to implement advanced technology to increase hemp cultivation and production capacity throughout each stage of the supply chain. The investment is expected to produce a significant increase to MariMed’s future earnings while ensuring a reliable supply of high quality, genetically superior hemp products for MariMed’s newly created hemp division, above and beyond MariMed’s core cannabis business.
“GenCanna, widely viewed as the gold standard of CBD manufacturing, is now even better with the addition of advanced CO2, high-capacity processing to extract and isolate cannabinoids to 99% purity at true scale,” said Robert Fireman, MariMed CEO. “MariMed is deeply committed to pharmaceutical-grade product quality, precision dosing, and purity. By combining GenCanna’s high-purity, high quality CBD oils with our proven product development processes and systems, we intend to raise the quality bar for hemp CBD products. We plan to be a major B2B and B2C distributor of branded CBD product -- taking superior CBD products to where consumers shop: the supermarket, medical clinics, drug store chains and other retailers in the US and beyond.”
“The passing of the 2018 Farm Bill will be a critical step in the continued development of the hemp industry. Hemp-derived CBD is an input for thousands of products in dozens of markets.” said Matty Mangone-Miranda, GenCanna CEO. “The world is only beginning to understand the power of the hemp platform. MariMed’s world-class product development expertise is a critical part of that platform. Our partnership is a win for us, a win for MariMed, and a win for the industry. With great partners, and with the great state of Kentucky, we will unlock the full potential of hemp.”
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About MariMed Inc.:
MariMed is a multi-state cannabis company that develops, owns and operates licensed cannabis facilities and develops and distributes branded cannabis and hemp product lines. MariMed’s team has developed state-of-the-art regulatory-compliant facilities in DE, IL, NV, MD, MA, and RI, which are models of excellence in horticultural principals, cannabis production, product development, and dispensary operations. In addition, MariMed is on the forefront of precision-dosed branded cannabis and hemp-derived products for the treatment of specific medical conditions. MariMed currently distributes its branded products in approximately 10 states, and is expanding licensing and distribution to additional markets, encompassing thousands of dispensaries and additional retail outlets. MariMed Inc. is one of the top-performing public cannabis companies in the U.S., according to the U.S. Marijuana Index, (www.marijuanaindex.com). For additional information, visit www.MariMedAdvisors.com
Forward Looking Statements:
This release contains certain forward-looking statements and information relating to MariMed Inc., that is based on the beliefs of MariMed Inc.’s management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company's services and products, changes in the law and its enforcement and changes in the economic environment. Additional risk factors are included in the Company's public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "hoped," "anticipated," "believed," "planned, "estimated," "preparing," "potential," "expected" or words of a similar nature. The Company does not intend to update these forward-looking statements. None of the content of any of the websites referred to herein (even if a link is provided for your convenience) is incorporated into this release and the Company assumes no responsibility for any of such content.
Jon Levine, CFO, MariMed
Tyler Troup, Circadian Group
+1 (866) 950 8300
Released December 20, 2018