Shares of multi-state cannabis operator MariMed, Inc. (MRMD) rose 4.68% on Thursday after the company received approval from the Maryland Medical Cannabis Commission for the transfer of 100% ownership of Kind Therapeutics to MariMed. Kind is a vertically integrated cannabis operator.
Consequently, Kind will be a wholly-owned subsidiary of MariMed, and its financials will be consolidated with MariMed.
The Maryland Medical Cannabis Program
Kind has a manufacturing plant in Hagerstown, MD, and is also developing a dispensary in Anne Arundel County. Its products are distributed to about 100 dispensaries under the Maryland Cannabis Program.
This program has over 139,000 registered patients and produced sales in excess of $500 million in 2021.
Recent Positives
Furthermore, MariMed has had a slew of developments over the past month. The company has launched a cannabis drink mix brand, Vibrations: High + Energy. The all-natural drink mix marked the company’s entry into cannabis-infused beverages.
Additionally, MariMed added a second retail location to its vertically integrated cannabis operations in Massachusetts. It also plans to develop a third adult-use dispensary in 2022 and double the space in its cultivation and processing facility in New Bedford to 140,000 square feet in 2023.
Wall Street’s Take
Colliers Securities analyst Kyle Bauser has reiterated a Buy rating on the stock alongside a price target of $2.25.
Overall, the Street has a Moderate Buy consensus rating on the stock based on two unanimous Buys. The average MariMed price target of $1.88 implies upside potential of about 159.4%.
Closing Note
The addition of Kind can boost MariMed’s operations. Additionally, the recent positive developments around the stock bode well for the company. These factors, combined with the Street’s expectations of 159.4% upside, should definitely put this cannabis operator on investors’ radar.
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