Recently, the CEO of MariMed Inc., Jon Levine, discussed his views on cannabis rescheduling, as well as the current and future growth of a pioneering cannabis company.
During an interview, Levine addressed questions about former President Donald Trump’s recent comments on cannabis rescheduling, expressing optimism on the political future of the plant. Levine noted that both Democrats and Republicans are increasingly discussing cannabis rescheduling, stating, “I do think that rescheduling will happen sometime in the next 12 months.” However, he did acknowledge the slow pace of government action.
In the United States, marijuana’s position as a Schedule I substance has been the topic of many conversations, with both advocates and critics bringing their opinions to the table regarding cannabis rescheduling for years. Yet, advocates’ voices that argue the move could have significant benefits for both the cannabis industry and publicly traded stocks have been attracting more attention.
A key factor in rescheduling cannabis is the move’s ability to help reduce the stigma still surrounding the industry, which is currently creating hesitancy in many investors who are cautious about getting involved in the cannabis sector due to its association with illegal drugs and criminal activity. By rescheduling cannabis, the industry runs a better chance of being perceived as more legitimate and trustworthy, ultimately attracting a wider range of investors and potentially boosting the value of publicly traded cannabis stocks.
However, reducing the stigma surrounding the cannabis industry could also pave the way for greater access to banking and financial services for these businesses. Currently, many financial institutions are resistant to working with cannabis companies for the same reasons other investors are: the legal risks still associated with handling funds from a Schedule I drug. By rescheduling cannabis, industry businesses could have better access to traditional banking services, which would enable them to operate more efficiently and transparently.
Beyond anticipating cannabis rescheduling in less than a year, Levine, who has served as CEO and President of MariMed, Inc. since 2023 and a company director since 2016, recently outlined the business’ operations, growth strategies, and financial outlook. Levine provided insights into the company’s performance in key states, as well as expansion plans and future projections.
For the second quarter of 2024, MariMed has maintained a year-over-year sales growth guidance of 5% to 7%. Levine noted that, despite industry-wide pressures, the company has achieved 11% year-to-date growth, driven by its wholesale business in Illinois, Maryland, and Massachusetts.
“Our revenue continues to outpace the industry, and we are on track to meet our guidance for the year and beyond,” Levine said.
The CEO discussed that investments in new facilities, such as doubling the growth capacity in Maryland, will produce results later this year, contributing to long-term profitability. The company is also set to open its second store in the Free State, which Levine anticipates will generate $10 million annually.
Yet, MariMed is actively expanding its footprint beyond the Free State. MariMed has already secured a processing license in Missouri, with plans to introduce its popular brands, like Betty’s Eddies, to the market later this quarter. The company is also focusing its retail presence in Illinois and Ohio, with MariMed already operating five stores in the former and planning to add five more. Levine also mentioned the company’s applications for licenses in New York, Texas, and Virginia.
MariMed is exploring licensing opportunities in states where it does not currently operate, such as Rhode Island and Puerto Rico. However, Levine stressed the importance of finding the right partners to maintain the high quality and consistency of MariMed’s products.
While already recognized and respected for its quality products, MariMed could further benefit from cannabis rescheduling, which can have a range of positive impacts on the cannabis company as a whole. By rescheduling cannabis, new avenues for research open up while also reducing the stigma, which would improve access to banking services for businesses.
