Mr. Jon Levine reports

MARIMED REPORTS THIRD QUARTER 2023 EARNINGS

Marimed Inc. today released its financial results for the third quarter ended Sept. 30, 2023.

"I am pleased to report another solid quarter of strong revenue growth on both a year-over-year and a sequential basis as we continue to outperform the greater industry," said Jon Levine, chief executive officer. "We reported our 15th consecutive quarter of positive adjusted EBITDA. Our wholesale business continued to set quarterly sales records, which will continue for the remainder of this year and next. Our balance sheet remains one of the strongest in the industry, and we were particularly pleased with the exponential growth of our Maryland operations with the commencement of adult-use sales on July 1."

Financial highlights

The attached table summarizes the company's consolidated financial highlights (in millions, except percentage amounts).

Conference call

Marimed management will host a conference call on Thursday, Nov. 9, 2023, at 8 a.m. Eastern Time, to discuss these results. The conference call may be accessed through Marimed's investor relations website.

Third quarter 2023 operational highlights

During the third quarter, the company announced the following developments in the implementation of its strategic growth plan:

• July 1: Marimed commenced adult-use retail and wholesale operations in Maryland. The company's retail sales, which began in Q4 2022, grew 88 per cent sequentially, while its wholesale business grew 161 per cent year over year.
• July 13: Marimed staged the Boston 280E THC Party in Boston Harbor to protest unfair cannabis industry tax laws. Inspired by its 250th anniversary, the company re-enacted the Boston Tea Party. Onboard a schooner in Boston Harbor, Marimed management and employees dressed in colonial outfits and decried unfair IRS Code 280E on behalf of the entire cannabis industry.

Other developments

Subsequent to the end of the third quarter, the company announced the following developments:

• Oct. 11: Marimed announced the opening of Thrive Dispensary in Casey, Ill., marking the fifth dispensary owned or managed in that state, and the 12th dispensary it owns or manages across five states. In response to the state's request to open as soon as possible, the company operates Thrive Dispensary from a temporary mobile facility until construction of a permanent building is completed. Marimed continues to build its processing and cultivation facility in Mt. Vernon, Ill. The processing facility is expected to open during the fourth quarter, at which time Marimed will produce its award-winning edibles for sale through retail and wholesale channels. The company expects the cultivation facility construction to be completed in early 2024.

2023 financial guidance

Marimed remains committed to its proven strategic growth plan and continues to operate some of the best facilities in the cannabis industry. Delayed openings of new revenue generating assets, input cost inflation,and increased competition continue to have a bigger impact than anticipated on operational and financial results. As such, the company's guidance for full year 2023 is now:

• Revenue of $148-million to $150-million;
• Gross margin of approximately 45 per cent;
• Non-GAAP (generally accepted accounting principles) adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $27-million to $32-million;
• Capital expenditures of $22-million to $25-million.

About Marimed Inc.

Marimed, a multistate cannabis operator, is dedicated to improving lives every day through its high-quality products, its actions and its values. The company develops, owns and manages seed-to-sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products and dispensary operations. Marimed has an experienced management team that has produced consistent growth and success for the company and its managed business units. Proprietary formulations created by the company's technicians are embedded in its top-selling and award-winning products and brands, including Betty's Eddies, Nature's Heritage, InHouse, Bubby's Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy.

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