At the time of writing, MRMD stock is climbing—up 5% and selling for $3.15 USD on the OTC. Shares of MariMed Inc. (OTCQB:MRMD) are reacting to the company's official Q1 report, released two days ago.
The results were strong and a bullish momentum has taken hold.
MRMD Stock Climbs on Q1 Success
The cannabis consultant's shares have nearly tripled in value in the last year and now the business is proving sequential growth.
MariMed showed significant growth in operating performance: Revenue was up 69%—coming in at $3.5 million compared to $2.2 million in 2018—and adjusted EBITDA up 76%.
Further:
"Gross profit as a percentage of revenue grew from 57% in the first quarter of 2018 to 64% in the first quarter of 2019. Both the improvement in revenue and gross profit percentage reflect the strong performance of the underlying operations under the Company’s management."
With the numbers looking this strong, MRMD stock has climbed and, as stated, is up 5% at present.
MariMed About
Growing its stock over 300% in the last year is no easy achievement. The company's business has grown exponentially thanks to its prowess as an ancillary-sector brand.
It began operations simple: providing consulting and advisory services to the US cannabis industry. Its services were in demand so much so that MariMed quickly became “one of the best-performing marijuana stocks of 2018”.
Services included advice on designing, developing, funding, and operating medical cannabis cultivation and production facilities and retail dispensaries.
But then MariMed did something clever; it transitioned to become a full-blown cannabis operator itself, by acquiring some of those business's it was consulting for. Now it has operations in six US states with plans to expand into more.
MRMD Stock and Hemp
In November 2018, MariMed made one of its most significant acquisitions. The company purchased hemp-based cannabidiol company GenCanna, and made the move into US hemp in doing so.
The timing was perfect because hemp-farming became entirely legal across the US in December and this opened the door to a “$22 billion by 2022” (according to Brightfield Group) hemp-derived CBD industry.
>>HEMP Stock Up 4%: Hemp Farming in Georgia Forecasted to Help Company
Aiming to take a significant cut of this market, MariMed then created the MariMed Hemp subsidiary in January. This arm of the company will focus exclusively on hemp CBD products.
Further, the US is warming to cannabis, MariMed is at the helm of further expansion opportunities and this can only mean strong potential for MRMD stock.
More and more states are legalizing medical and/or recreational marijuana and if they haven't done so already, they are talking about it. Most recently, Illinois became the 11th state to make recreational marijuana legal, although the new law won't be implemented until January 2020.
Are you an MRMD stock investor? What is your take on the company's Q1 results?
Featured Image: Canva
