According to an SEC filing, MariMed (OTCQB:MRMD) director Thomas Kidrin sold 100,000 shares of the MRMD stock earlier in May.
There were two transactions made on the 1st and 2nd of the month, for 70,000 and 30,000 respectively when MRMD stock was valued at just over $3.
Should this of concerned investors?
The transactions were made at approximately the same time that shares took a sudden 9% dip at the end of April—MRMD stock fell from $3.32 to $3.05 in two days.
It’s probable that Kidrin’s sale may have played a part in that dip. But the director still holds nearly 7 million company shares according to the NASDAQ, so investors shouldn’t worry just yet.
It was a questionable time to sell, however, because the company showcased it’s impressive Q1 results just two weeks later. This caused shares to soar again.
The report showed that MariMed’s business is growing sequentially. Revenue was up 69%—coming in at $3.5 million compared to $2.2 million in 2018—and adjusted EBITDA up 76%.
Currently, MRMD stock—which has nearly tripled in value in the last year—is swapping hands for $3.19 USD on the OTC.
MariMed Is Growing Fast
MariMed is in a lucrative position. It is the right time for its in-demand cannabis consultation services and business has boomed. The company covers everything from licensing application support to facilities management and as a whole, MariMed provides consulting to some hundreds of cannabis entrepreneurs.
Akin to that, it has made the move from consulting to doing with several acquisitions of its own. Now, it is a full-blown cannabis operator with operations in 6 US states and plans to expand further.
MRMD Stock and GenCanna Global
One of MariMed’s significant acquisitions was of hemp-based cannabidiol company GenCanna Global Inc. In buying the company, MariMed made the move into the $22 billion US hemp industry. This news caused MRMD stock to soar at the time.
To compliment that acquisition, MariMed’s subsidiary, MariMed Hemp recently acquired 70% of MediTaurus—the owner of US hemp wellness products, Florance brand.
With a number of online distributors, pharmacies and wholesalers, Florance is an established brand which will have a key role in optimizing the company’s investment in GenCanna.
Are you an MRMD stock investor? What are your thoughts on Kidrin’s sale? Does it worry you or not?
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