MariMed Inc. (OTCQB: MRMD) reported that in the first quarter ending March 31, 2019, revenues grew 69% to $3.5 million versus last year’s $2.1 million for the same time period. The company trimmed its net losses for the quarter to $23,211, a 99% improvement over the $1.9 million loss for the first quarter of 2018.
MariMed delivered a breakeven quarter on a per share basis versus the $.01 per share loss for the same period in 2018. Gross profits grew 90% to $2.2 million vs. $1.2 million for the first quarter of 2018 compared to the same period in 2018.
“We continue to see dynamic growth in our cannabis operations, even as we have become a significant early mover in the burgeoning CBD health and wellness market,” said MariMed CEO Bob Fireman. “We are encouraged by our continued strong operating performance, and look forward to realizing the benefits of investments and initiatives undertaken over the last two quarters, which include the ongoing consolidation of cannabis operations, the opening of additional cannabis facilities in several states, expanding the licensing of our brands and products into additional licensed states, and our multi-pronged entry into the CBD market.”
MariMed Inc. outlined the strategic steps it took in the hemp-based CBD market to complement its existing seed-to-sale cannabis operations. As per the company statement, MariMed said it established MariMed Hemp Inc., a wholly owned subsidiary of MariMed, Inc. to leverage significant opportunities in the hemp-based CBD market for health and wellness products. The company said it is developing new and innovative CBD brands and products that will be distributed to retailers and through representatives to health and medical businesses. It converted debentures in GenCanna Global Inc. into a significant equity position in GenCanna, an industry leader in vertically integrated hemp cultivation and one of the nation’s largest producers of GMP compliant CBD products.
Contributing to the improvement in the first quarter of 2019 compared to the first quarter of 2018, was the company’s share of net earnings in GenCanna of $2.0 million, as that organization benefits from the growing demand for CBD products globally.