MariMed is about to close a deal that will see the vertically integrated cannabis company acquire Kind Therapeutics at a price of $20 million. This amount will be paid in the form of cash and promissory notes to Kind Therapeutics. Through this acquisition, the Massachusetts-based company will have a presence in three states; Massachusetts, Illinois, and Maryland. This is according to news that was first released by Globenewswire on Wednesday.
MariMed is a multi-state cannabis company with a seed-to-consumer approach that is driven by the desire to ensure that cannabis products offered to patients are safe and of a reputable quality. The company was founded in 2012 in Massachusetts and has since expanded to Illinois and now Maryland.
Kind Therapeutics is a medicinal cannabis wholesaler that is based out of Maryland State. Kind is composed of different brands including Betty’s eddies (which MariMed is acquiring), K-fusion, Nature’s, Heritage, and Healer.
MariMed will be acquiring minority shares in two subsidiaries of Kind that have facilities in Maryland and Delaware at a cost of an extra $2 million. This is not the first time that MariMed and Kind have attempted to come together. In 2016, an acquisition deal between the two companies fell through when Kind launched litigation against MariMed and MariMed also launched counterclaims. Upon closing of the new deal, Kind Therapeutics will withdraw any claims against MariMed.
However, this deal is subject to the closing conditions being met. It is also subject to the fulfillment of regulatory requirements. Kind Therapeutics holds a provisional license for a cannabis dispensary in Maryland, which MariMed might make use of. Kind received their cultivation and processing licenses in 2017 from the state’s medical marijuana regulators.