Cannabis company MariMed, Inc. (OTCQX:MRMD) announced Tuesday that it has inked a definitive agreement to acquire Green Growth Group.
Terms of the deal to purchase the holder of a provisional cannabis craft license in Illinois were not disclosed.
What It Means For MariMed
This transaction will enable MariMed to add cultivation, manufacturing and distribution to its existing retail cannabis operations in Illinois.
In addition, the Massachusetts-based company agreed to bring its full product portfolio of award-winning and top-selling brands, genetics and products to one of the top cannabis markets in the country.
Bob Fireman, CEO of MariMed, said that the transaction allowed the company to be a vertically integrated cannabis operator in the Prairie State, where it already operates Thrive-branded dispensaries.
"It is an important part of our strategic growth plan to increase our revenue and profits by expanding in the high-growth states in which we currently operate," Fireman continued.
Currently, the state's regulations provide for MariMed to own up to ten retail locations and three craft licenses, he explained.
Jon Levine, who oversees the company's finance department, said that "being vertical in Illinois will improve our gross margins at our retail stores and provide the Company wholesale revenue from the sale of our branded products to other dispensaries."
What's Next?
For the craft license, MariMed will acquire a building to develop up to 14,000 square feet of canopy for cultivation, build an extraction lab to produce concentrates and build a production kitchen to manufacture edibles and other derivative products.
The company intends to manufacture and distribute its proprietary brands and products in Illinois, including Betty's Eddies fruit chews, Nature's Heritage flower and concentrates, as well as Bubby's Baked soft and chewy baked edibles, to name a few.
More recent news from MariMed:
- MariMed To Buy Maryland Medical Marijuana License Holder Kind Therapeutics For $20M
- MariMed: 213% YoY Increase In Q3 Adjusted EBITDA, Reaffirms Full-Year Revenue Guidance Of $118M
- MariMed Shares Surge On Increased Revenue Guidance To $118M, Sixth Sequential Quarter Of Positive EBITDA Growth
- We All Scream For Cannabis Ice-Cream: MariMed, Emack & Bolio Team Up To Create Weed Gelato
MRMD Price Action
MariMed's shares traded 3.76% lower at $0.828 per share at the market close on Friday.
