MRMD stock is trading lower by 1% in this morning’s session after MariMed Inc. (OTCQB:MRMD) has announced that its subsidiary MariMed Hemp will acquire 70% of MediTaurus, the owner of the Florance brand of hemp wellness products. The company has also announced its Q4 and FY results.
Florance is an established brand in the US and EU, with a number of online distributors, pharmacies, wholesalers, and physicians.
This is the first MariMed Hemp acquisition established to optimize the company’s investment in GenCanna Global Inc. Jokubas Ziburkus, the founder and CEO of MediTaurus, is expected to join MariMed as a Chief Innovation Officer.
The acquisition is important to MRMD stock as the Florance brand will help it to jump-start its hemp division. Equally, the company will benefit from the expertise of Ziburkus, who has immense research experience in hemp and cannabis.
Q4 2018 Financial Results
MariMed reported a strong revenue growth 0f 118% in the Q42018, earning $3.44 million compared to $1.58 reported in 2017. FY revenue grew by 95% to $11.85 million while adjusted EBITDA grew 53% to around $2.4 million.
Bob Fireman, the CEO of MariMed, stated that the company was encouraged by its strong performance in 2018. The growth reported was a result of investments to capitalize on market opportunities in the future. The company managed to consolidate client licenses of businesses in seven states, and the process is expected to be completed next year.
MariMed has also made various strategic acquisitions that will put it in a competitive position, enhance its vertical integration, and also ensure long-term profitability. Already it has made a strategic investment in Sprout, to help with marketing. The $30 million investment in GenCanna, a global innovator in cannabis genetics, will make MariMed one of the largest hemp producers in the US.
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