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 to transfer 100% ownership of Kind Therapeutics to MariMed. Kind is a vertically integrated cannabis operator.
Therefore, Kind will be a wholly owned subsidiary of MariMed and its finances will be consolidated with MariMed.
The Maryland Medical Cannabis Program
Kind has a manufacturing facility in Hagerstown, MD, and is also developing a dispensary in Anne Arundel County. Its products are distributed in a hundred dispensaries under the Maryland Cannabis Program.
This program has over 139,000 registered patients and generated sales of over $500 million in 2021.
Additionally, MariMed has seen a host of developments over the past month. The company launched a brand of cannabis drink mixes, Vibrations: High + Energy. The all-natural beverage mix marked the company’s entry into cannabis-infused beverages.
Additionally, MariMed has added a second outlet to its vertically integrated cannabis operations in Massachusetts. It also plans to develop a third adult dispensary in 2022 and double the space of its cultivation and processing facility in New Bedford to 140,000 square feet in 2023.
The Taking of Wall Street
Colliers Securities analyst Kyle Bauser 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 an upside potential of approximately 159.4%.
Adding Kind can boost MariMed operations. Additionally, recent positive developments around the stock bode well for the company. These factors, combined with expectations of a 159.4% rise from the street, should definitely put this cannabis operator on investors’ radar.
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