For those looking to invest in cannabis-related companies in Massachusetts, there are several options. Before discussing a few of these companies, it’s important to mention that inclusion in this article is not a recommendation to buy the stock.
Hopefully, the information provided serves as a starting point for your own research. Further, my firm New Cannabis Ventures is a service provider to several companies, as noted in the individual discussions. With that said, here are some brief observations on six companies with a substantial focus on Massachusetts cannabis cultivation, extraction or distribution.
Similar to AmeriCann, MariMed Advisors (OTC: MRMD) doesn’t actually hold a Massachusetts cannabis license. Instead, it provides consulting services for those wishing to obtain a license or operating facility in several states.
The company, based in Newton, Mass., has helped clients in eight states, and it offers the Kalm Fusion and Betty’s Eddies lines of branded products that it licenses to state-specific operators. In November, MariMed acquired a 137,000 square foot facility in New Bedford, Mass., a portion of which the company intends to lease to a licensed cannabis operator, ARL Healthcare. MariMed is also developing an 8,000 square foot dispensary in Middleborough, which will be leased to ARL Healthcare.
As of Nov. 14, 2017, the company had 171.3 million shares outstanding and 6.75 million options (all at or below $0.55). Subsequent to that date, it sold 6.95 million shares at an average of $0.407 and issued 3.48 million shares following conversions of debt and preferred shares. It also borrowed $4 million due June 18, 2008, and issued 1 million warrants at $0.50 per share. At a recent closing price of $1.13 and based on 188.5 million fully-diluted shares, MariMed has a market cap of approximately $213 million.
Bottom line: Massachusetts, which has a medical cannabis industry that has been slow to develop, will permit commercial adult-use cannabis sales beginning in July. The state is the first on the East Coast to tax and regulate adult-use cannabis, and several publicly-traded companies have exposure to the market.
Read the full story on Leafly here.