(MRMD) announced it completed a $4 million
loan financing from Best Buds Funding to finish building its medical cannabis cultivation and production facility in Hagerstown, MD.
MariMed, a self-described industry leader in cannabis cultivation, said the debt financing was done in spite of headwinds facing both cannabis-related businesses and microcap companies in general.
“With this transaction, MariMed has secured debt and equity of approximately $22.348 million this year, proving our ability once again to raise funds in a traditionally very difficult microcap environment coupled with the challenges of the medical cannabis industry,” stated Robert Fireman, CEO of MariMed in a release.
Shares were up slightly more than 8% to 65 cents on Wednesday, following the loan financing announcement.
Fireman added that he expects Best Bud’s relationship with MariMed to continue. “We appreciate Best Bud’s investment and look forward to future transactions supporting our anticipated continued growth and momentum as we expand with facilities and branded products across the U.S,” he said.
Graubard Miller provided the legal representation for Best Buds in the aforementioned transaction.
MariMed’s Very Busy Year
In July, it raised $5.2 million
to aid in developing and expanding client medical cannabis facilities in Maryland and Delaware, as well as marketing its Kalm Fusion line of precision dosed cannabis products in other states. Additionally, it hired
Fireman as CEO and Jon Levine as CFO to help complete the company’s sole focus on the cannabis industry, following the merger with Worlds Online.
Later that month, it acquired Betty’s Eddies
, “a line of fruit chews handcrafted and naturally sweetened with the finest all-natural ingredients and non-GMO organic fruits and vegetables,” to add to its existing line of cannabis-related products.
Since becoming solely focused on the cannabis industry in April, shares of MariMed have more than doubled, giving it a market cap of just over $110 million.