MariMed Announces Strategic Exit From Missouri Market

Executive Summary

• MariMed Inc. completed a strategic review and is exiting its Missouri operations effective immediately, ceasing management of the facility and abandoning its license transfer pursuit.
• The exit is expected to improve overall financial performance, notably gross margin and adjusted EBITDA, allowing focus on higher‑return markets where the company already operates.
• Management may consider future licensing opportunities in Missouri with a vertical operator if financially advantageous.

Key Details

• Since 2024, MariMed managed Missouri operations for another licensed cannabis operator under a Managed Services and Licensing Agreement while awaiting state license transfer approval.
• Effective immediately, MariMed will no longer manage the Missouri facility nor seek the pending license transfer.
• The company continues to own or manage revenue‑generating assets in six states: Delaware, Illinois, Maryland, Massachusetts, Ohio, and Pennsylvania (13 dispensaries and six cultivation/processing facilities).
• Exiting Missouri is projected to enhance gross margin and adjusted EBITDA by removing a low‑scale operation that required significant resources.
• CEO Jon Levine stated the brands performed well where available but scaling would have demanded resources better allocated to core markets; future licensing with a vertical operator will be evaluated on financial merit.

Notable Quotes

“Our brands performed well in the select stores where they were available in Missouri, but we concluded that reaching scale would have required significant resources we believe are better utilized in our core markets… Moving forward, we will consider licensing opportunities in Missouri with a vertical operator if it makes financial sense and supports our goal of becoming a cannabis CPG powerhouse.” – Jon Levine, CEO, MariMed Inc.