MariMed Strengthens Delaware Market Position with First State Compassion Center Acquisition

MariMed Inc. (CSE: MRMD) (OTCQX: MRMD), a leading multi-state cannabis operator, has bolstered its market position in Delaware by completing the acquisition of First State Compassion Center (FSCC), the state's top cannabis operator. The acquisition, finalized in accordance with the terms of a July 2023 Omnibus Agreement, integrates FSCC's cultivation and processing facilities, along with two dispensaries, into MariMed's fully vertical operations. This strategic move enhances MariMed's revenue and profitability, as well as its competitive edge in the Delaware cannabis market.

The approval for MariMed to become the owner of FSCC was facilitated by the state permitting FSCC to transition from a not-for-profit to a for-profit business. This timing aligns perfectly with Delaware's anticipated launch of adult-use cannabis sales later this year, with the state estimating that its legal cannabis market could grow to $215 million in annual sales. MariMed and FSCC have a long-standing partnership, with MariMed assisting FSCC in securing its original cannabis license and providing management and real estate services since 2014. FSCC currently distributes MariMed's award-winning portfolio of brands in Delaware, including Betty's Eddies™ fruit chews, Vibations™ drink mix, and Nature’s Heritage™ flower, which are already popular among consumers.

Becoming the owner of FSCC completes an important component of MariMed's strategic growth plan. With this development, the Company has now completed the acquisition of its previously managed businesses in Massachusetts, Illinois, Maryland, and Delaware, the results of which are now consolidated in the Company's financial statements. Jon Levine, MariMed's Chief Executive Officer, expressed his enthusiasm about welcoming FSCC to the MariMed family, stating that the acquisition will further build FSCC's and MariMed's brands' dominance in the market while also improving their balance sheet.



The integration of FSCC's cultivation and processing facilities, along with its two dispensaries, enhances MariMed's vertical operations and revenue streams in several ways. First, the acquisition increases MariMed's product supply, allowing it to meet growing demand and potentially expand its customer base. Second, the addition of FSCC's two dispensaries diversifies MariMed's revenue streams, as these dispensaries will sell MariMed's popular brands, further increasing overall revenue. Third, the acquisition strengthens MariMed's market dominance in Delaware, as FSCC was already the top operator in the state. Lastly, the timing of the acquisition aligns with Delaware's expected launch of adult-use cannabis sales, allowing MariMed to capitalize on the growing market and capture a larger share of the adult-use cannabis sales in Delaware.

In conclusion, MariMed's acquisition of First State Compassion Center in Delaware has significant strategic implications, including market expansion, vertical integration, brand dominance, strategic growth plan completion, and timely market entry. These factors position MariMed to capitalize on the growing adult-use cannabis market in Delaware and further strengthen its market position in the state. As MariMed continues to execute its strategic growth plan, investors can expect the company to maintain its competitive edge in the cannabis industry.