MariMed Earnings Affected By GenCanna Challenges

Medical cannabis producer MariMed Inc. MRMD released Wednesday its fiscal year 2019 financial results with revenues of $45.6 million. Core cannabis sales accounted for $16.6 million, compared to $11.9 million in fiscal 2018.

For the quarter ended Dec. 31, the Norwood, Massachusetts-based company reported revenues of $5.19 million, which compares to $3.44 million in the same period of the prior year.

A notable rise in revenues was thanks to its roll up of licensed client business in Illinois, and operations at its new distribution channels reserved for its two brands — Betty’s Eddies and Kalm Fusion.

The company’s quarterly financial results also contained a one-time charge of $30.2 million caused by a write-off of its investment in GenCanna, which contributed to the MariMed’s pretax loss for the fiscal year 2019 of around $81.9 million, versus a pretax loss of $13.3 million in the prior year.

MariMed also posted a net loss for the year of $81.2 million or 39 cents per share, which compares to a net loss of $13.6 million or 7 cents per share for fiscal 2018.

“Due to GenCanna’s recent challenges, we believed it prudent to make these accounting adjustments now to resolve any uncertainty for our stockholders as no further accounting adjustments are expected as a result of GenCanna’s Chapter 11 proceeding. These financial adjustments did not impact our core cannabis business, which continued to grow revenues substantially during the fourth quarter,” Jon Levine, MariMed’s CFO, said in a statement.

MariMed’s shares were trading 11.20% lower at 16 cents per share on Wednesday.

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Photo courtesy of MariMed