MRMD stock is on the rise after MariMed Inc (OTCQB:MRMD) released its Q2 results earlier today. The US multi-state cannabis and hemp operator reported record results for the first half of 2019. Now, shares are rising, selling for $1.72 USD and up 4.25% at the time of writing.
The results show a dynamic and growing cannabis business as well as a fast-growing hemp subsidiary. Should investors watch this play?
MRMD Stock: Q2 Results Impress
MariMed focuses on health and wellness through its line of cannabis and hemp products. The Q2 results showed impressive momentum and demand as initial transactions increased significantly in comparison to the same year-ago period.
Specifically, investors should note that revenues increased a whopping 774%—totaling $25.7 million USD. Revenue from cannabis sales alone increased by 24.5% to $3.7 million, and overall gross profit was up 341.1% to $8.9 million. Net income increased to $4.7 million.
MRMD stock is likely to continue to climb, at least in the short-term, as investors react to the results.
Expansion and Growth
The changing legalizations in Canada and certain US states play a major part in MariMed’s increasing sales. But along with that, this is a company that has grown its operations dramatically in 2019, fueling the company’s dominance in the cannabis and hemp sector.
Operational highlights of the quarter include the following:
MariMed expanded its facilities along with “both in-house and licensed brands” product lines. Most recently, it announced a “licensing agreement with Denver-based Binske to distribute its popular and diverse cannabis products in several important markets east of the Mississippi.”
Arguably, a real gem in MariMed’s crown is its subsidiary MariMed Hemp—the company’s CBD-focused business. This arm showed first services revenues that totaled $25.2 million from its first sales of hemp seeds to GenCanna Global. A sign of things to come, before the earnings release, the company completed the second round of hemp seed sales to GenCanna, which totaled $8 million. With CBD sales only expected to increase, this news should be a true boost for MRMD stock.
Lastly, of note, MariMed closed out the quarter by building out its branded product line through a 70% acquisition of MediTaurus. The latter’s brand, named ‘Florance,’ is a line of CBD health and wellness products that sell across the US as well as internationally in Europe.
MRMD stock is on the rise, and it’s no surprise. For under $2 USD, the company has given the sector something to shout about. After all, the company’s Q1 results also impressed, so is this a company on a run?
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