Massachusetts-based MariMed Inc. (MRMD) announced that it has raised $2.828 million in equity through the sale of its restricted stock in private placements between October 30, 2017 and January 24, 2018 at prices averaging 15% below the market price. The stock has traded in a range between 20 cents and $1.48 and was lately trading at $1.21.
The company said that the funds were used for the continued development of MariMed cannabis facilities in Maryland and Massachusetts. In conjunction with raising the money, MariMed reduced its liabilities by $1.8 million through the conversion of $1.25 million of promissory notes into common stock retiring $550,000 of additional promissory notes. MariMed also said it converted $500,000 plus dividends in holdings of Preferred Class A Stock to common stock.
“We have a combination of new and returning investors who recognize MariMed’s achievements of major milestones within announced timeframes and are confident in MariMed’s proven business model,” stated Jon Levine, MariMed CFO. “These transactions strengthen our balance sheet by increasing our assets and reducing our debt. As MariMed continues to grow stronger and expand its footprint in the cannabis industry, our increasing revenue, assets, and earnings are attracting new capital, positioning our company for a continued upward trajectory and future growth.”
Earlier this week MariMed announced that its Kalm Fusion™ brand precision dosed Kalm-Corn cannabis-infused popcorn and Kalm Powdered Tincture drink mixes were now available for the first time to state-licensed Nevada dispensaries as part of the company’s national expansion of its branded products. Prior to that announcement, MariMed named Ryan Crandall Vice President of Product & Sales as part of its plan to expand its executive team and staff to support the company’s planned strategic growth in 2018 and beyond. In a statement, the company said that in this position, Crandall will be responsible for MariMed’s national sales initiative and growing MariMed’s portfolio of products and brands. MariMed is part of the U.S. Marijuana Index, (www.marijuanaindex.com).