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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>MariMed reported 4Q revenue of $38.9 million, which was exactly in line with our estimate.</li><li>This represents a 0.26% increase Q/Q and an 8.66% improvement Y/Y. Gross margins were 44.47%, a gain of 1.80% sequentially and 0.34% Y/Y.</li><li>Revenue was helped by a full contribution from the Thrive Dispensary in Casey, Illinois and beginning operations at the Mt. Vernon, Illinois manufacturing facility. </li></ul>

MariMed reported 4Q revenue of $38.9 million, which was exactly in line with our estimate.This represents a 0.26% increase Q/Q and an 8.66% improvement Y/Y. Gross margins were 44.47%, a gain of 1.80% sequentially and 0.34% Y/Y.Revenue was helped by a full contribution from the Thrive Dispensary in Casey, Illinois and beginning operations at the Mt. Vernon, Illinois manufacturing facility. 

MariMed, Inc. - Poised for Growth in 2024

<ul><li>MariMed has begun manufacturing and processing cannabis products in its new kitchen in Mount Vernon, Illinois.</li><li>As often happens in cannabis, there were construction and regulatory delays, but the company expects to have its award-winning edibles in Illinois stores in time for the holidays.</li><li>Illinois is the sixth-most populated state with 12.7 million residents.</li></ul>

MariMed has begun manufacturing and processing cannabis products in its new kitchen in Mount Vernon, Illinois.As often happens in cannabis, there were construction and regulatory delays, but the company expects to have its award-winning edibles in Illinois stores in time for the holidays.Illinois is the sixth-most populated state with 12.7 million residents.

MariMed, Inc. - Begins Manufacturing and Processing in Illinois

<ul><li>MariMed closed a $58.7 million secured credit facility with a US chartered bank on November 17, 2023.</li><li>The refinancing will result in a $4.7 million reduction to principal and interest expense in the first 12 months and $3.5 million annually for the next four years.</li><li>MariMed estimates its new weighted average cost of debt is now about 8%, down from more than 11% previously.</li></ul>

MariMed closed a $58.7 million secured credit facility with a US chartered bank on November 17, 2023.The refinancing will result in a $4.7 million reduction to principal and interest expense in the first 12 months and $3.5 million annually for the next four years.MariMed estimates its new weighted average cost of debt is now about 8%, down from more than 11% previously.

MariMed, Inc. - Closes $58.7 Million Debt Refinancing

Thematic (Sector/Industry)

<ul><li>The US cannabis MSOS ETF ended the week +7.05%, while the global YOLO ETF finished +7.03%.</li><li>The MJUS ETF rebalancing drove considerable volatility in the underlying, with MariMed (CSE: MRMD, OTCQX: MRMD) and TerrAscend (TSX: TSND, OTCQX: TSNDF) both up more than 30% in the last five sessions, while Curaleaf (TSX: CURA, OTCQX: CURLF) and Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) ended in the red.</li><li>The top 10 MSOs (by enterprise value) have reported 2Q earnings. </li></ul>

The US cannabis MSOS ETF ended the week +7.05%, while the global YOLO ETF finished +7.03%.The MJUS ETF rebalancing drove considerable volatility in the underlying, with MariMed (CSE: MRMD, OTCQX: MRMD) and TerrAscend (TSX: TSND, OTCQX: TSNDF) both up more than 30% in the last five sessions, while Curaleaf (TSX: CURA, OTCQX: CURLF) and Green Thumb Industries (CSE: GTII, OTCQX: GTBIF) ended in the red.The top 10 MSOs (by enterprise value) have reported 2Q earnings. 

The Highlights - Cannabis News for the Week Ending August 16, 2024

<ul><li>Cannabis stocks started strong last week but faded on Friday. MSOS dropped 2.50% over the five sessions, while YOLO fell 1.73%.</li><li>Ascend (CSE: AAWH, OTCQX: AAWH) rallied 12.18% following its debt refinancing, while Jushi (CSE: JUSH, OTCQX: JUSHF) lost the most at -9.84%.</li><li>Ascend (CSE: AAWH, OTCQX: AAWH) announced on Monday it successfully refinanced its debt.</li></ul>

Cannabis stocks started strong last week but faded on Friday. MSOS dropped 2.50% over the five sessions, while YOLO fell 1.73%.Ascend (CSE: AAWH, OTCQX: AAWH) rallied 12.18% following its debt refinancing, while Jushi (CSE: JUSH, OTCQX: JUSHF) lost the most at -9.84%.Ascend (CSE: AAWH, OTCQX: AAWH) announced on Monday it successfully refinanced its debt.

The Highlights - Cannabis News for the Week Ending July 19, 2024

United States

MariMed, Inc. operates as a pharmaceutical company. The Company specializes in designing, development, operation, funding, and optimization of medical cannabis cultivation, production centers, and dispensaries. MariMed serves customers in the State of Massachusetts.

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MariMed (MRMD US)

MariMed, Inc. - Poised for Growth in 2024

Revenue was helped by a full contribution from the Thrive Dispensary in Casey, Illinois and beginning operations at the Mt. Vernon, Illinois...

Water Tower Research

MariMed, Inc. - Begins Manufacturing and Processing in Illinois

As often happens in cannabis, there were construction and regulatory delays, but the company expects to have its award-winning edibles in Illinois...

Water Tower Research

MariMed, Inc. - Closes $58.7 Million Debt Refinancing

The refinancing will result in a $4.7 million reduction to principal and interest expense in the first 12 months and $3.5 million annually for the...

Water Tower Research

The Highlights - Cannabis News for the Week Ending August 16, 2024

The top 10 MSOs (by enterprise value) have reported 2Q earnings. Revenue declined 0.8% Q/Q and grew 4.27% Y/Y, while adjusted EBITDA fell 0.9% Q/Q...

Water Tower Research

The Highlights - Cannabis News for the Week Ending July 19, 2024

Ascend (CSE: AAWH, OTCQX: AAWH) rallied 12.18% following its debt refinancing, while Jushi (CSE: JUSH, OTCQX: JUSHF) lost the most at -9.84%.

Water Tower Research

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