MariMed Completes Acquisition of First State Compassion in Delaware

MariMed Inc., a leading multistate cannabis operator, has officially completed its acquisition of First State Compassion Center (FSCC), Delaware’s leading cannabis operator. The acquisition, finalized under the Omnibus Agreement announced in July 2023, integrates FSCC’s cultivation and processing facilities and two dispensaries into MariMed’s fully vertical operations, enhancing the company’s revenue and profitability.

Delaware’s Transition to Adult-Use Cannabis Sales Creates Market Potential

MariMed’s acquisition was facilitated by Delaware’s decision to allow FSCC to transition from a not-for-profit to a for-profit business. The timing aligns with Delaware’s expected launch of adult-use cannabis sales later this year. A recent state report projects that Delaware’s legal cannabis market could reach $215 million in annual sales.

Longstanding Partnership Between MariMed and FSCC

MariMed and FSCC have collaborated since 2014, with MariMed assisting FSCC in securing its original cannabis license and providing management and real estate services. FSCC distributes MariMed’s award-winning brands in Delaware, including:

Betty’s Eddies fruit chews – the state’s top-selling edible brand.

Vibations drink mix – the top-selling beverage brand in Delaware.

Nature’s Heritage flower – ranked No. 4 among flower brands sold in the state since its launch in spring 2024.

Strategic Growth Plan and Market Expansion

This acquisition marks a key milestone in MariMed’s strategic growth plan. With the completion of the FSCC acquisition, MariMed has now fully integrated its previously managed businesses in Massachusetts, Illinois, Maryland, and Delaware. The financial results from these acquisitions are now consolidated in MariMed’s financial statements.

MariMed CEO Jon Levine Welcomes FSCC to the Company

“We are thrilled to welcome FSCC to the MariMed family,” said MariMed CEO Jon Levine. “We have worked closely with FSCC’s incredible team to support its growth trajectory from the very beginning, resulting in it being the top operator in Delaware today. By fully integrating FSCC’s operations, we will further strengthen our brands’ dominance in the market while also improving our balance sheet.”

With this acquisition, MariMed continues to expand its market presence and solidify its position as a leader in the growing cannabis industry.