MariMed Inc. (PNK:MRMD) Q4 2022 Earnings Call Transcript

Andrew Semple: Understood. And that’s helpful. Thank you very much for taking my questions, and I’ll get back in the queue.

Operator: Thank you. The next question comes from Aaron Grey, Alliance Global Partners. Please go ahead.

Aaron Grey: Hi, thank you. First and foremost, I’m very sad to hear of Bob’s passing. I had nothing but great interactions with them over the years and will certainly be more concerned within the industry. So on to my questions, I would kind of go back a little bit to the gross margin. I just wanted to dig a little bit into Massachusetts specifically, where I think you guys talked about stable pricing conversions in that state. Obviously, one that’s seen a little bit more pricing pressure in 2022. So just wanted to know in terms of what’s driving expedition for stabilization, especially with some of the neighboring states of Connecticut and Rhode Island beginning adult use sales? Thank you.

Jon Levine: Thanks, Aaron. I’ll let Susan speak more to the margins on the individual states. Yes, there was pricing pressure within Massachusetts, but that pressure really, we didn’t have to — we didn’t follow the market down. We’ve been able to stabilize our prices still at a very high level as our quality of products demand the upper pricing. So we’re considered a top shelf, Nature’s Heritage was the number one selling flower in Massachusetts. So our product has been able to maintain the higher prices on the market, and I’ll let Susan speak to the margins.

Susan Villare: Yeah. And then just to add on that, I’m looking at the Massachusetts and we track, obviously, each of the states in the industry. And we saw in Mass where our competitors dropped this quarter by 3% of their revenue and year-over-year by 1%, and we were in the quarter, up 2% and year-over-year 6%. So as Jon said and Tim, we are selling out of natures, we are holding the prices, and we think we have a premium product portfolio to offer.

Jon Levine: Your question about Rhode Island and Connecticut and what kind of an effect it’s having. We, as you know, have a partner in the Slater center in Rhode Island and their adult use to starve it down there. And they’re seeing sales, but not the — there’s not a big increase in sales of people coming across. They still do a lot more medical program down there. So we’re not seeing a huge effect. I think that is a very competitive market. Our stores are not near the Rhode Island border, but we have customers that are on the Rhode Island and Connecticut border and some that are in the New York border, you will see some start of the reduction of sales in those areas. But I don’t see it being a big effect because they’re very competitive here in Massachusetts to those states.

Aaron Grey: Okay, great. Thanks for that color. That’s really helpful. And then second question for me. I know you guys mentioned potentially utilizing Twitter now and branding has been big for you guys. So just wanted to get some further color maybe just with the rule change from Twitter. How is exactly you’ll be able to utilize that to further advertise for the company or your brand just incremental color exactly on your sales plan came down to state-by-state basis? Thank you.

Jon Levine: Yeah, Aaron, I believe we made the statement that we’re putting more money into our marketing group to really push our brands. Our marketing department has done a lot of great work and are prepared now to actually be able to put real commercials on a Twitter type basis with some fun type of videos and other things. We just find it as a better means of communication to the consumer, and we’re excited about the fact that that market is starting to open.

Aaron Grey: All right. Great. Thank you very much for the call. I will jump back to the queue.

Operator: Thank you. The next question comes from Jon Decourcey of BTIG. Please go ahead.