MariMed Secures $46M In New Funding For Expansion Purposes, Debt Relief
Beacon Securities Ltd. advised the deal.
Why It's Important: The initial chunk, $23 million — $3.70 per share of Series C preferred stock plus a common stock purchase warrant — will be used by MariMed to pay off long-term debt and expand its cannabis facilities.
"We are thrilled to have been selected by Hadron as their preferred partner to complete this strategic investment in the US MSO sector," MariMed CEO Bob Fireman said in a prepared statement.
The funds are expected to bolster MariMed's balance sheet and enable the Norwood, Massachusetts-based company to ink acquisitions, Fireman added.
Hadron has invested in cannabis companies before, touting an investment portfolio valued at over $300 million.
Hadron CIO Marco D'Attanasio praised MariMed, touting its potential as a "profitable" multistate operator.
What's Next: Expect MariMed to release fourth-quarter financial results for 2020 soon. It may also look to attain new cannabis licenses. So far, MariMed has successfully won 17.
The company also hopes to develop over 300,000 square feet of cultivation and production space.
In November, the company published an earnings report showing core cannabis revenues hovered at $13.5 million for the third quarter.
That's up by 220% from the same quarter of 2019.
The gross profit for the quarter jumped 221% to $8.7 million when compared to $2.7 million achieved in the third quarter of the prior year.
Marimed closed Tuesday at 80 cents per share — up about 4%.
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