It’s time for your Daily Hit of cannabis financial news for March 24, 2021.
On The Site
MariMed, Inc. (OTCQX: MRMD) reported financial and operating results for the three and twelve-month periods ended December 31, 2020, after the market closed on Tuesday. MariMed’s cannabis revenues increased 292% in the fourth quarter to $20.4 million versus $5.2 million for the same time period in 2019. MariMed is initiating the full year 2021 revenue guidance of $100 million and EBITDA guidance of $30 million. the company said in a statement that over the last year it anticipates accelerated growth in 2021 driven by adding additional dispensaries and continued focus on consolidating key assets under management as well as facility expansion in Delaware and Maryland. In addition, MariMed said it will expand the licensing of its branded products into other states.
Law360 reported that a Manhattan jury found two businessmen guilty of assisting in an elaborate plan to let California weed company Eaze process transactions without getting flagged by banks over the federally illegal substance. The website said that it took the jury six hours to come to that conclusion following a hard-fought trial that began on March 1 before U.S. District Judge Jed S. Rakoff.
The OTC Markets Group (OTCQX: OTCM) announced that the latest cannabis SPAC Mercer Park Brand Acquisition Corp. (OTCQX: MRCQF), trading today on OTCQX under the symbol “MRCQF.” Mercer Park has said it was formed with the intent to focus on branded product businesses in cannabis and/or cannabis-adjacent industries. Mercer Park Brand Acquisition Corp. is the fourth Special Purpose Acquisition Company (SPAC) to join OTCQX in the past year.
Monday, March 22, 2021, was an important day for the vape industry, marking the comment period deadline for revisions to the Preventing Online Sales of E-Cigarettes to Children Act, which were included in the 2021 omnibus spending bill recently passed by Congress. These changes prohibit Electronic Nicotine Delivery Systems (ENDS) from being sent to consumers through the United States Postal Service, influencing other common carriers such as Fed Ex, which announced it would ban the delivery of vaping products as of March 1, 2021.
High Tide Inc. (OTCQB: HITIF) has completed the acquisition of Smoke Cartel Inc. (OTCQB: SMKC) in a deal valued at $8 million. The company said it now operates both the largest and second-largest e-commerce platforms for consumption accessories in the world with a combined total of 33 million site visits in 2020. As a result of the acquisition, High Tide said it has considerably expanded its footprint in the United States market and is very enthusiastic about its position to begin online cannabis sales should the United States move forward with federal legalization.
In Other News
Harborside Inc. (HBORF) said it has entered into a loan financing arrangement with a commercial federally regulated bank, in the amount of $12 million pursuant to a senior secured revolving credit facility due March 2024. The bank would not allow the company to reveal its name.
“To the best of our knowledge, Harborside is the first cannabis business in the United States to secure a commercial loan of this kind with a traditional lender,” said Tom DiGiovanni, Chief Financial Officer of Harborside. “This deal is the culmination of months of effort and reflects the close working relationship and trust that we have developed with our bank. By significantly lowering our cost of capital, we will be able to better serve our customers, provide high-quality products and invest more heavily throughout California.”