MariMed Inc. experienced plenty of highs in 2022.
The Massachusetts company saw its fifth year of double-digit growth, with revenue projections set to top $150 million in 2023. MariMed continues to expand its presence in its home state, as well as in Illinois, Maryland, Missouri and Ohio.
But in December, co-founder, chairman and CEO Robert Fireman passed away, and after a brief period as interim CEO, MariMed’s Board of Directors officially named Jon Levine as CEO in February.
“Bob was a brother and a friend of mine for many years,” Levine said. “We founded this company and built it from where we started to here — it was a vision he and I had, and he was a big inspiration for the whole industry. He was a big-hearted person who would be willing to give any information to a competitor or a friend just to help them get into the industry, as there is enough room for all of us to compete in the same market.”
Despite the circumstances, Levine said it was a “great honor” to take on the CEO role, adding he was pleased MariMed’s board understood the significance of what he and Fireman had already built.
“I know that I can complete everything that we started and take it to the next level,” Levine said. “I really am proud of everybody that we’ve put on the team around me, and that they’re going to help me build this to the next level of being a large, Tier 1 MSO, and be a leader in the industry.”
MariMed reported revenue of $35.8 million for the fourth quarter of 2022, up from $31 million in the fourth quarter of 2021. The company generated $134 million for the year ending in 2022, up from $121.5 million in 2021.
MariMed reported a gross margin of 45% for the fourth quarter and a gross margin of 48% for the year ending in 2022. The company’s non-GAAP adjusted EBITDA totaled $32.4 million, down from $42.8 in 2021.
Levine said the company leveraged its financial position to pursue a $35 million credit facility, which closed at the end of January. The funding will allow MariMed to complete eight projects, including:
- The build-out of a new cultivation and processing facility in Illinois
- A new processing kitchen in Missouri
- Expanding existing cultivation and processing facilities in Massachusetts and Maryland
“Everybody wants our flower and products, and we need bigger facilities to keep up with the demand that’s out there today,” Levine said. MariMed cultivates and sells flower under the premium Nature's Heritage brand, as well as the In House brand.
MariMed also recently closed its acquisition of Ermont, Inc.’s operating assets, giving the company its second medical dispensary in Massachusetts. The location began operating under MariMed’s Panacea Wellness brand on March 10. The company also won a dispensary license in Ohio in May 2022.
When it comes to expanding to other markets, Levine said MariMed has specific criteria it needs to meet.
“I was asked earlier if we’ll go to California — we will if we find the right opportunity and we can make the margins that we demand for our shareholders,” he said. “It’s making the decision that we go to growth markets that have some time of limitation on licenses and better controls against the illegal flower.”
In October, MariMed expanded its line of Betty’s Eddie’s fruit chews to include more need-based effects. Using cannabinoids, herbs, vitamins and supplements, the line features chews designed to promote sleep, relaxation, pain relief and heightened libido.
“A lot of people who were enjoying the sleep aid didn’t realize there were other things you could use Betty’s for,” Levine said.
The Betty’s Eddies portfolio, which also has an updated look, includes:
- Bedtime Betty’s: There are now two Bedtime Betty’s chews that may help consumers achieve sleep. A new recipe infuses a blend of THC, CBN, and CBD into a Raspberry Creme chew. It joins the original, best-selling Bedtime Betty’s recipe, which infuses full-spectrum cannabis and melatonin into a Lemon Agave chew.
- Ache Away Eddies: This Very Cherry chew is infused with THC, CBD and CBC, plus a natural blend of turmeric, piperine, and vitamin E. Working together, the ingredients may help ease inflammation and aid recovery.
- Take It Easy Eddies: Infused with a natural blend of THC, CBDV, and CBG, plus passionflower, chamomile, and L-theanine, this Pineapple Orange chew may help consumers reach a relaxed, stress-free state-of-mind.
- Smashin’ Passion: Infused with full-spectrum cannabis and a blend of natural aphrodisiacs, including horny goat weed, muira puama, damiana, and maca root, this Passion fruit chew may help increase libido.
- Go Betty Go: This Watermelon chew is infused with L-theanine, natural caffeine from coffee, and a blend of THC and THCV, to put some pep in the step and increase energy.
- Elderbetty: CBD and THC are now added to a recipe that includes a blend of elderberry, zinc, vitamin C, and vitamin D3. Together, this Elderberry chew may help boost immunity.
- Betty Good Times: Available in two original flavors, Strawberry and Peach Mango, these “Anytime Eddie” chews are only infused with full-spectrum cannabis to provide a good time during any occasion.
After initally collaborating with Boston ice cream brand Emack & Bolio’s in 2021, MariMed introduced core flavors of Betty’s Eddie’s cannabis-infused ice cream in Massachusetts last year.
Emack & Bolio’s was founded in 1975 by Boston music attorney Bob Rook as a place for rockstar clients after their late-night gigs. Aerosmith, Boston, U2, James Brown and The Cars were some of the groups Rook worked with previously.
Featuring 20 mg THC per serving, available flavors include Betty Brownie Vanilla, Cup O’ Coffee Chip, Chocolate Sunny Days and Black Raspbetty.
“It’s very successful here in Massachusetts, and we’re very happy with it,” Levine said. “We’ve been having demands come from other states. We’re just trying to finish the test marketing and make sure we’re doing it in the proper fashion.”
Levine added MariMed is also exploring new formats for its Bubby's Baked brand, as well as new effects and flavor offerings for its Vibations drink mix brand.
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