MariMed Inc. (OTC:MRMD) Q3 2022 Earnings Call Transcript

Tim Shaw: Andrew, this is Tim again. Thanks for the question. Our margins on the value products are great actually. We’ve cut costs on some of those things and cutting corners to make sure that we attain the same margins and it’s really, really just helped our Nature’s Heritage Brand and Nature’s Heritage has actually BDS data just came out saying Massachusetts. We’re number one in both sales dollars and market share. So it’s really been accretive to the entire portfolio of our flower exchange.

Andrew Semple: Okay, thanks for that, Tim. Conversely, on more of the premium product side, could you maybe give it a bit of an update on how, why flower has been received in the market? Has that received the premium pricing that you had hoped for? And does demand continue to build for that product line?

Tim Shaw: I didn’t catch the beginning part of that question, Andrew. I’m sorry.

Andrew Semple: Sorry. for the LIVE Flower product, how has that been in market and has that achieved the pricing you’d hope for? And is demand building, does demand continue to build for that product line?

Tim Shaw: Got you. Yes. Actually LIVE Flower, we are getting a premium above all other. It is steady rolling out. We’ve started off with a soft roll into our own dispensary and we’re slowly releasing it into other dispensaries. Being that there’s an education piece that goes along with it to make sure the consumer understands exactly what they’re getting and why they’re spending more. So it’s €“ it is gaining traction.

Andrew Semple: Great. Thanks for taking my questions. I’ll get back into queue.

Operator: Your next question comes from Jon Decourcey with BTIG. Please go ahead.

Jon Decourcey: Hey guys, thanks for the question. Congratulations on another execution quarter here. Just a couple quick questions out to me. Can you provide a little bit more color? You talked about the Maryland opportunity to ramp cultivation and production to be more of a wholesale provider. Can you kind of talk about scale and timing that you have for that initiative if and when you decide?

Jon Levine: Yes, good morning, Jon. Jon Levine speaking. Thank you very much for joining the call this morning. Yes, in Maryland, we have completed our expansion of our kitchen, which has allowed us to produce all of our brands in a more efficient way to supply the market heavily with all of our brands. We also have ability to expand our flower rooms as the adult use becomes approved in the state, which they’re voting on today. And we’re hopeful that that will pass. So right now we’re concentrating on the brands. We have plenty of flower that we’re wholesaling into the market. The wholesale has been going up as we reported earlier, and we look forward to continuing that as the market expands.