MariMed Extends Series B Preferred Stock Obligation Through 2031, Strengthening Capital Structure

Executive Summary

• MariMed Inc. entered into a Restructuring and Exchange Agreement with holders of its $14.725 million Series B Convertible Preferred Stock, extending the weighted‑average maturity by 4.6 years and reducing near‑term refinancing risk.
• The restructuring replaces the February 28 2026 mandatory conversion date with two new promissory notes ($2 M at 8% maturing Mar 2028; $6 M at 10% maturing Mar 2031) and $6.725 M of newly issued Series B Convertible Preferred Shares priced at $0.25 per share, convertible in February 2031.
• Management cites the transaction as enhancing liquidity, strengthening the balance sheet, and providing flexibility to pursue growth initiatives.

Key Details

• Agreement Scope: Restructuring of the $14.725 M Series B Convertible Preferred Stock obligation.
• New Debt Instruments:
• $2 M promissory note – 8% interest, maturity March 2028 (2‑year term).
• $6 M promissory note – 10% interest, maturity March 2031 (5‑year term).
• Equity Component: $6.725 M of Series B Convertible Preferred Shares issued at $0.25 per share; mandatory conversion scheduled for February 2031 unless converted earlier.
• Maturity Extension: Weighted‑average maturity extended by 4.6 years versus the original schedule, eliminating the Feb 28 2026 mandatory conversion date.
• Liquidity Impact: Reduces near‑term refinancing risk and improves the company’s liquidity profile.
• Use of Proceeds / Allocation: Not explicitly disclosed; restructuring primarily re‑profiles existing obligations.
• Regulatory Filing: Details filed in a Form 8‑K on the same day, available via MariMed’s Investor Relations website.

Notable Quotes

“We are pleased to successfully complete the restructuring, which meaningfully extends the maturity profile of the obligation and enhances our financial flexibility,” – Jon Levine, CEO, MariMed Inc.

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