CAO John Levine: Cannabis MSO MariMed is ‘a Hunter’ in the Land of the Hunted
Earlier this month, we reported how MariMed, Inc. (OTCMKTS: MRMD, CSE: MRMD) is generating substantial free cash flow following their recent financial release. John Levine, the CAO of MariMed, joins us today on The Dales Report to discuss their promising financial outlook and recent uplisting on the Canadian Stock Exchange.
Here’s a few highlights from the interview.
Levine Explains Why MariMed Is One Of The Most Underrated MSOs
Cannabis investors have expressed disappointment in the performance of many ‘top tier’ MSOs in the market. They’re underperforming, obviously, to say the least. This may be why investors have been looking for second-tier companies to invest in. To that end, MariMed is becoming a name that’s brought up more and more.
Levine says that MariMed has been “flying under the radar for years.” That, unfortunately, he believes is their original startup mission, to act as a consultant and management company for other partners in the cannabis space. MariMed helped their partners run a complete company, Levine adds. This included assisting with everything from development, to facility build, to book keeping and helping pave the path to profitability.
In short, they originally helped their clients by running their businesses like their own, but that service offering is being rolled up as MariMed is growing being an MSO in its own right.
The Company Has Beaten Revenue And EBITDA Guidance Handily
The financial discipline they brought to bear for clients when operating as a consultant shows in their own latest report. MariMed exceeded guidance with a full year revenue of $121.5 million and adjusted EBITDA of $43.1 million. That’s an increase of 139% and 144% respectively over the previous year’s reports.
In a market where many cannabis companies are talking mergers and acquisitions – some companies being hunters, and others the hunted – it certainly backs up Levine’s claim that MariMed is one of the former.
Financial Discipline Is Going Back Into Growing MariMed, Says Levine
When asked about how the company is showing financial discipline, Levine says simply that MariMed is using cash flow to pay for expansion of their operations. He uses their expansion in Massachusetts as an example. MariMed built out the Growth Facility to start, Levine says, focusing on grow rooms until they had cash flowing. From there, they added on. They bought the equipment, got it running to expand the business.
That’s the most recent market that they’ve expanded into. Their work in Maryland, Levine says, has grown to the next level, with a new kitchen and the ability to produce more branded products for that market.
Be sure to tune in to the full interview. You won’t want to miss out on some insights from Levine into the cannabis market of Maryland, future growth states for MariMed down the line, and some of their incredible marketing campaigns that have gotten a lot of attention for their company.