Cannabis Co. MariMed Finalizes $11M Deal To Acquire First State Compassion

In a strategic move aligning with Delaware's shift toward adult-use cannabis, multi-state cannabis operator MariMed Inc. MRMD has completed its acquisition of First State Compassion Center (FSCC), the state's leading cannabis operator. This deal, originally structured in a July 2023 Omnibus Agreement, enables MariMed to fully integrate FSCC's cultivation, processing, and retail assets into its vertically integrated operations.

A Deal Years In The Making

MariMed's relationship with FSCC dates back to 2014, when the company helped FSCC secure its cannabis license and provided management and real estate services. The recently completed acquisition follows Delaware's approval of adult-use cannabis sales, a market projected to reach $215 million in annual revenue.

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A key component of this acquisition was the state's decision to permit FSCC's transition from a nonprofit to a for-profit entity. This development allowed for the automatic conversion of all amounts owed by FSCC to MariMed—totaling $11 million—into full ownership of FSCC's licenses and operations. Additionally, MariMed retained the option to extend up to $2 million in working capital loans to FSCC.

Strengthening Market Position Ahead Of Adult-Use Sales

With adult-use cannabis sales expected to commence later this year, MariMed is positioned to solidify its dominance in Delaware's market. FSCC already distributes MariMed's top-selling brands, including Betty's Eddies fruit chews, Vibations drink mix and Nature's Heritage flower, which has rapidly climbed to the fourth-best-selling flower brand in the state.

Jon Levine, CEO of MariMed, expressed confidence in the deal's impact on the company's trajectory. "We are thrilled to welcome FSCC to the MariMed family. We have worked closely with FSCC's incredible team to support its growth trajectory from the very beginning, resulting in it being the top operator in Delaware today. We expect by fully integrating its operations, we will further build FSCC's and our brands' dominance in the market, while also improving our balance sheet."

Consolidating MariMed's Multi-State Presence

This acquisition marks another milestone in MariMed's strategic expansion plan, completing its roll-up of previously managed businesses in Massachusetts, Illinois, Maryland and now Delaware. With FSCC's revenue now fully consolidated in MariMed's financial statements, the company is well-positioned for growth amid increasing consumer demand.

Delaware's transition to adult-use cannabis presents significant opportunities for operators prepared to scale. With its expanded footprint and deep market expertise, MariMed is set to play a leading role in shaping the state's evolving cannabis landscape.

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