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

Jon Decourcey: Okay. And then from the €“ I think Bob was mentioning M&A transactions, I’m sure it’s a case by case basis, but just generally speaking, are we thinking about more small tuck-in acquisitions just within existing states or are you guys targeting further expansion beyond your current footprint?

Jon Levine: This is Jon again. Yes, as Bob said, we’re looking for accretive states with opportunities to expand our distribution of our award-winning brands. But when we look at mergers with others, we’re looking for like-minded operating philosophies and culture, which is very important to us is to make sure that we have a culture that’s very similar. We’re looking, expanding in the states that we’re in to get to our limits of in each state, but we’re also looking at new states like New Jersey and New York, Georgia, Virginia to expand into as they come available.

Jon Decourcey: Okay. No, it’s €“ that’s interesting. And would you consider a partnership with a like-sized operator or is it just only again, the kind of smaller opportunities?

Jon Levine: No, we’re just in discussions and we just haven’t found that quality of the culture and philosophy that we’re looking for to make sure that we have the right merge.

Jon Decourcey: Okay, great. And then last question from me, Jon, is you guys gave a lot of color on why you’re bullish for 2023. With the opening of some dispensaries and key states and the wholesale expansion, what does that look like from a CapEx standpoint? What’s required to build out those assets in terms of remaining spending?

Susan Villare: I am sure. This is Susan Villare. Thanks for joining the call. So at this point, we haven’t given CapEx guidance for next year. But we are using currently our cash flow from operations to fund these build outs. To the extent that we were able to find favorable financing to do some transformational acquisitions. We would certainly look at that, but based on our very strong cash flows, we can build those out with our existing cash flows we have today.

Jon Decourcey: Okay, great. All right. That’s it for me. Thanks, guys.

Susan Villare: Thanks.

Operator: Your next question comes from Tom Carroll with Stansberry Research. Please go ahead.

Tom Carroll: Hey, guys. Good morning. Thanks for the question. I think all my questions have pretty much been answered. I wonder if you would chat a little bit about if you’ve done any work recently given that it’s election day on safe plus being passed during the lame-duck session. I know it’s kind of a crazy question, but have you guys dug into anything specifically on the plus part? Thank you.

Jon Levine: Well, we basically don’t do a lot of lobbying, but we’ve been working with a lot of the local politicians, sorry, in the states that we’re in trying to help push through the State Banking Act and we’re very hopeful that that’s still with the President that can get through.

Tom Carroll: Okay, thank you.

Operator: Your next question comes from Eric Des Lauriers with Craig-Hallum Capital Group. Please go ahead.

Eric Des Lauriers: Great. Thank you for taking my questions. Could you just talk about how your pricing strategy for your premium brands has evolved over the past few months here? Are you looking to sort of maintain any consistent pricing across your markets, or is this just sort of more on a market-by-market basis looking at try to drive consistent margins, any just color on your evolving sort of pricing strategies in wholesale given the evolving dynamics would be great? Thanks