MariMed Inc. (OTC:MRMD), a prominent multi-state cannabis operator is doubling down on its growth strategy by launching manufacturing operations in Missouri while expanding capacity in Illinois.
With Missouri marking its sixth state of operation, MariMed aims to extend its branded product range, including Betty's Eddies fruit chews and Bubby's Baked confections, across the state by late November, tapping into Missouri's burgeoning market just in time for the holidays.
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Missouri's Fast-Growing Market
MariMed's chief revenue officer Ryan Crandall expressed optimism about the Missouri expansion. "Expanding our branded products into Missouri has been a key goal for us. Missouri's fast-growing market is eager for high-quality products."
Until regulatory approval for license transfer is granted, MariMed will operate the Missouri facility under a Managed Services Agreement (MSA).
Strategic Growth In Illinois: A $496 Million Market
MariMed's expansion in Illinois is critical to its growth, as the state accounted for 40-45% of the company's sales in Q3, amid a $496 million cannabis market driven primarily by recreational sales.
Analyst Pablo Zuanic from Zuanic & Associates emphasizes the significance of Illinois, despite challenges like declining per capita spending ($160) and reduced per-store revenue, which dropped to $8.8 million annually.
To capture more market share, MariMed is investing $7.7 million in a new 14,000-square-foot cultivation site, expected to start sales by early 2025, capitalizing on Illinois' high wholesale prices and increasing its production capabilities.
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Mixed Results Across State Markets
In other states, MariMed's performance varies with market dynamics. Maryland's mature cannabis market yielded $292 million in Q3 sales, an 8% increase year-over-year.
Meanwhile, Massachusetts faced price deflation, leading to a 17% drop in branded sales.
