MariMed, Inc. has closed its acquisition of Ermont Inc., a vertically integrated medical cannabis operator in Quincy, Massachusetts.
The acquisition gives MariMed its second medical dispensary in Massachusetts, completing the company’s buildout to the maximum allowable by state regulations. The transaction closed on March 9, and the dispensary began operations under the Panacea Wellness brand name the following day.
The dispensary now features an expanded selection from MariMed’s brand portfolio, including Nature’s Heritage flower and concentrates; Betty’s Eddies fruit chews; Bubby’s Baked soft-baked goods; Vibations: High + Energy drink mixes; and the full suite of its InHouse branded products. MariMed’s branded cannabis products are distributed to virtually all dispensaries in the Massachusetts cannabis market, which generated $1.8 billion in total cannabis sales during 2022, according to the Massachusetts Cannabis Control Commission.
MariMed’s acquisition includes two Host Community Agreements with the city of Quincy, one of which is to conduct adult-use cannabis sales. The company is applying with the MCCC for approval of adult sales and plans to expand the existing medical dispensary to accommodate increased demand.
Plans also include repurposing the cultivation facility and moving its pheno-hunting activities from the New Bedford cultivation and processing facility to free up space for additional capacity of Nature’s Heritage flower. MariMed is partnering with Little Dog for the delivery of medical and adult-use cannabis where permitted.
The closing of this transaction is the result of a successful restructuring conducted by court-appointed receiver Opus Consulting Partners LLC. Opus Consulting and MariMed negotiated the transaction with court approval, and the acquisition was approved by the CCC on March 9. This is the first cannabis receivership in New England and a first-of-its-kind transaction.
Receivership is a court-appointed pathway used by struggling businesses and creditors as an alternative to bankruptcy. Because cannabis remains a Schedule I substance under the U.S. Controlled Substances Act of 1970 (CSA), most businesses engaged in its cultivation, manufacturing, sale and distribution do not have access to federal bankruptcy protection.
“We are thrilled to open our second medical dispensary in Massachusetts and continue expanding our footprint in our home state,” MariMed CEO Jon Levine said. “Maximizing our presence in Massachusetts has been a longtime goal of MariMed, and with a third dispensary to open soon in Beverly, we are nearly there. We look forward to delivering to Quincy cannabis patients the outstanding customer service and a wider variety of products that Panacea Wellness is known for. And we are happy to welcome all the Ermont employees to the MariMed family.”