MariMed Inc. (PNK:MRMD) Q2 2023 Earnings Call Transcript

Jon Levine: Good morning, Andrew, its Jon Levine. Thank you for joining the call and thank you for the question. Yes, CapEx, we have been paying the bills as the comment, but with supply chain issues and some other delays, yes, that those delay things. But we are planning on spending the balance of our money in the third and fourth quarter to get these facilities open. We’re very, very close in those. As Susan said, that’s still in our guidance for the final third and fourth quarter to increase our revenue.

Andrew Semple : Great. Appreciate the color and I’ll get back in queue. Thanks for taking my questions.

Jon Levine: Thank you.

Operator: Your next question will come from Erin Gray at Alliance Global Partners. Please go ahead.

Erin Gray: Good morning and thank you for the question. First one for me, just in terms of the storage of ramping slower than you had expected. Maybe some incremental color in terms of what you believe might be contributing to that. Whether it might be some of the initiatives from the legacy nearby stores that they’re taking to kind of, keep that store traffic. Because it seems like especially for some aspects Illinois you’re not things from the new stores. Give them market lift that you might have expected. So, what are some things [Indiscernible] And what do you think are some things that are in your control of health, start to increase the ramping of those stores? Thank you.

Jon Levine: Good morning, Erin. Congratulations on your new baby. Thank you for joining the call. This is Jon Levine. Yes, the slower ramp up is really the fact that we had several delays on getting our approval versus what we had projected. So, not that the sales are not there. It’s just that we started later. Massachusetts is the perfect example where it took us an extra four months to get that license before we were able to open. Now they are open, we’re putting the dollars in to market it and bring those revenues up. We do see the increases every month. And we’re going to hopefully see them continue on that same platform. But we’re also got as Susan, the addition of the other facilities, the opening, which have also been delayed. So those are driving our lateness to the revenue. It’s not that they’re not ramping. It’s just that we missed the starting time.

Erin Gray: Okay. Got it. Thanks for that color. And then, second question for me would be on Maryland. Just in terms of what do you see in terms of the wholesale market overall inventory levels. Do you feel like it’s sufficient right now? Is it pretty time inventories and then how are you guys position for that as well? Thank you.

Tim Shaw: Thanks Erin This is Tim again. Yes, the wholesale program is going really well. Our production where we can really control inventory levels out of the kitchen and lab are inventory levels are doing great. We’re meeting the need and continuously growing. We’ve hit our record wholesale sales last month, which was exciting. because there was a large ramp in June. And July, you know, was kind of a tell to see if the reorders come in and they did. But we’re excited to see what’s going to finish this year out. We can’t grow enough flower, right? So we’re still expanding the grow and going to be looking to get as much flower on that market.

Jon Levine: And I’ll add in, Erin, that we’re also pushing the contractors there to expand that grow as fast as possible. But again, those supply issues are what sometimes caused delays. But we are doing everything we can to get more flowers to team in the sales group.