MariMed Statement on Historic Rescheduling of Cannabis

Executive Summary

• The U.S. federal government reclassified cannabis as a Schedule III drug, the most significant reform to date.
• Reclassification removes the IRS Section 280E tax penalty for state‑legal cannabis businesses, which is expected to materially improve MariMed’s profitability and free cash flow.
• The change is anticipated to accelerate accredited medical research on cannabis‑derived medicines and expand consumer adoption as an alternative to opioids.

Key Details

• Federal reclassification of cannabis to Schedule III announced by the Trump Administration.
• Removal of IRS Section 280E tax penalty for compliant state‑legal cannabis operators, including MariMed.
• Expected financial impact: material improvement in profitability and free cash flow for MariMed.
• Anticipated market effect: acceleration of medical research into cannabis‑derived medications and increased consumer adoption for chronic pain, sleep, anxiety, and other ailments.
• CEO Jon Levine’s statement emphasizes the reform as “the single greatest cannabis reform in US history” with far‑reaching benefits.

Notable Quotes

“We commend President Trump and the Trump Administration for reclassifying cannabis as a Schedule III drug. This is the single greatest cannabis reform in US history and will have far‑reaching benefits for years to come.” – Jon Levine, CEO, MariMed Inc.