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MariMed buys shuttered Medleaf store, expands Maryland footprint

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Multistate operator MariMed (CSE: MRMD) (OTCQX: MRMD) completed its acquisition of the operating assets of Medleaf, a dispensary in Prince George’s County, Maryland.

The transaction closed on Friday and includes an adult-use license from the Maryland Cannabis Administration.

The acquired dispensary, which has been closed since July, will reopen under MariMed’s “Thrive Wellness” brand by the end of the second quarter, pending regulatory approvals. This will be the company’s second adult-use dispensary in Maryland, alongside its existing Annapolis location and Hagerstown cultivation and processing facility.

In a statement, CEO Jon Levine expressed enthusiasm about the acquisition, calling Maryland a “fantastic, high-growth, adult-use market.”

“Maximizing our footprint there has long been one of our top strategic priorities, and this agreement gets us closer to that goal,” Levin said.

The Upper Marlboro dispensary will offer a selection of products from MariMed’s brand portfolio, which are already distributed to nearly all dispensaries in Maryland, the company said.

MariMed said it plans to continue seeking additional dispensary acquisitions, with a goal to reach the state-allowed maximum of four stores.

Last month, Levin told investors on a call that the firm has faced significant delays in its expansion projects across multiple states due to ongoing global supply chain issues and regulatory setbacks. The issues have impacted the company’s financials, resulting in a $16 million net loss last year.

Levine specifically called out difficulties in securing basic construction materials, such as electrical panels, which have taken up to six months to obtain, he said.

He said the supply chain disruptions have caused delays in the build-outs of Hagerstown cultivation facility, with the expansion now expected to be completed later in 2024.



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