The marijuana business has grown by leap and bounds across North America over the past year and one of the companies that have been particularly interesting is MariMed Inc. The company has built up one of the more extensive operations in the United States and on Monday, the company made a major announcement. The company announced that it had been granted permission by the Illinois Department of Financial and Professional Regulation to finally acquire the cannabis licensed clients KPG Anna and KPG Harrisburg. It is a significant development for MariMed since the company will now be able to add the financial results of these businesses to its financial results for the period that ended on October 1.
Illinois is one of the handfuls of states in the United States where marijuana is legal and hence, the acquisitions expand the company’s footprint in the state considerably. The company had announced these acquisitions some time ago and will help the company in further consolidating its cannabis client business that stretches across several states. The timing is highly opportune as well since cannabis for recreational use is also going to be legalized from the start of 2020. Hence, the completion of these deals could not have come at a better time for MariMed.
It is believed that the company is going to turn the two locations in Harrisburg and Anna into medical dispensaries. The locations will also provide adult-use products and help the company is further consolidating its position on the cannabis dispensaries space in the state. The Chief Executive Officer of MariMed Bob Fireman spoke about the acquisitions. He said,
“The completion of this acquisition is a significant step forward in the implementation of our acquisition and roll-up strategy. The ownership of dispensaries in conjunction with Illinois’ legalization of cannabis for adult use should significantly enhance the revenues of these facilities.”