MariMed Statement on Historic Rescheduling of Cannabis

MariMed Inc., a prominent multi-state cannabis operator, celebrated the historic rescheduling of cannabis to a Schedule III drug by the Trump Administration. CEO Jon Levine expressed gratitude for this landmark decision, labeling it as the most significant cannabis reform in U.S. history. He emphasized that this reclassification acknowledges cannabis' accepted medical uses and low risk of abuse, paving the way for extensive medical research into cannabis-derived medications.

The rescheduling is expected to greatly benefit the cannabis industry, particularly by providing a pathway for patients seeking alternatives to opioids for chronic pain, sleep disorders, anxiety, and other medical conditions. With federal recognition of cannabis’ medicinal potential, more consumers may turn to these alternatives, fostering broader acceptance and use of cannabis products.

Additionally, the reclassification alleviates the financial burdens that state-legal cannabis businesses, such as MariMed, faced under IRS Section 280E, which imposes a tax penalty on cannabis operators. This change will allow compliant businesses to be taxed similarly to those in other consumer goods sectors, likely resulting in improved profitability and free cash flow.

MariMed, known for its prestigious portfolio of cannabis brands including Betty's Eddies™, Bubby’s Baked™, and Nature’s Heritage™, has established itself as an industry leader dedicated to quality and innovation. The company continues to push forward, setting new standards within the cannabis sector. For more information, visit MariMed’s official website or contact their communications team for media inquiries.

This strategic rescheduling reflects a pivotal moment for the cannabis industry, heralding an era of increased legitimacy and opportunities for growth.

MariMed Inc. (CSE: MRMD) is positioned to leverage a pivotal shift in the cannabis industry following the recent reclassification of cannabis to a Schedule III drug by the U.S. federal government. This historic decision, lauded by CEO Jon Levine, acknowledges the medical validity and lower abuse potential of cannabis, offering multiple avenues for growth and financial improvement for companies in the sector.

Firstly, this reclassification represents a substantial reduction in tax burdens for compliant operators like MariMed. Previously subjected to the stringent IRS Section 280E tax provisions, which impose corporate taxes without deductible business expenses, cannabis businesses can now expect to operate under a taxation framework similar to other consumer goods sectors. This change is likely to enhance profitability margins significantly and improve free cash flow, making MariMed an attractive option for investors seeking solid returns in the cannabis space.

Moreover, the potential for increased consumer acceptance of cannabis is set to grow with better access to medical research. As studies into cannabis-derived medications expand, we can expect a surge in consumer interest and a subsequent boost in sales, particularly as patients seek alternatives to traditional pharmaceuticals for symptoms like chronic pain and anxiety.

MariMed's strong portfolio of recognized brands, such as Betty's Eddies™ and Bubby's Baked™, positions it advantageously to capitalize on these trends. Companies that can promote the medicinal benefits of their products will likely see increased market penetration.

In conclusion, MariMed is strategically positioned for significant growth following this landmark policy change. Investors should keep a close watch on the company’s performance in the coming quarters as they navigate this new regulatory landscape, potentially leading to an upward trajectory in stock price and market share.