MariMed Inc. (PNK:MRMD) Q2 2023 Earnings Call Transcript

Erin Gray: Great. Thank you very much for that color. I’ll turn back in the queue.

Operator: You are next question will come from Mike Regan at Excelsior Equities. Please go ahead.

Mike Regan: Hello, everyone. Thanks for the question. Just two quick questions. Just to sort of better understand, I guess, correct me, if I understand it correctly. In terms of the potential reduction, the guidance for EBITDA, is that basically, Missouri and Illinois seem to been delayed in the whole business, and that offset by some slightly better result in Maryland or may I misunderstanding that. There’s sort of other moving parts there in terms of the labor. So, it’s certainly something as a labor as a permanent reduction. But just sort of help me understand. It’s really a part to make sure I’m understanding that correctly?

Susan Villare: Sure, Mike. This is Susan. So I think we kind of looked at how the first half went with the opening of our stores and operations. And as Jon had said previously, that really we had a full staff on the ready for three months before the store opened. And so with these bigger wholesale facilities, we thought it prudent to put in case, you know, it delays a month or two. We’re going to get the facilities after the staff hired. So we gave ourselves a little bit of buffer. But we have kept the high end of the range. But if we see delays, which we’re not anticipating, we just wanted to have that in the range of our guidance.

Mike Regan: That’s basically paying people to do nothing until you get the approval. So that’s always frustrating.

Susan Villare: Yes.

Mike Regan: And then real quickly, I guess, if you have any comments on sort of what you’re seeing in the Massachusetts. Pricing or broadly, at least the state data seems to have — the pricing seems to have sort of flatten out a bit. I was wondering, I guess, what you’re sort of seeing in sort of price and volumes in that state as the pricing has come down obviously as everyone knows the past year, but now it seems to sort of flattening out?

Tim Shaw: Hi, Mike. This is Tim again. Appreciate the question. Yes, pricing in Massachusetts, we have seen somewhat stabilized. We still stay well above the freight, almost double the average price per pound is our average for our premium flower. And to compete and make sure that we’re capturing all ranges of costumers. We also continue to produce and sell our in-house flower to capture both in the premium and the value brands. But we feel still bullish and we’re going to push through this storm and Massachusetts and it produce and high quality product and stay above the price. So we’ve been able to do that and we don’t see any change for the future.

Mike Regan: Hey, great. Thanks a lot.

Tim Shaw: Thanks, Mike.

Operator: Your next question will come from Pablo Zwanik at Zwanik and Associates. Please go ahead.

Pablo Zwanik: Good morning, everyone. Look, just a first couple of questions on the expansion side of things. So in the case of Maryland, is a priority on the cultivation side that are also in to prioritize trying to acquire licenses there and open more stores if that’s possible? And if you can quantify the size of the cultivation expansion in Maryland, or is it just a kitchen on the edible side? And then similar question from Massachusetts. If you can talk about the Quincy expansion, we’re talking about doubling capacity. Just if you can put some numbers around that? Thank you.

Jon Levine: Good morning, Pablo. Thank you very much for joining us. This is Jon Levine. I’ll first start with the first question on the Maryland. Yes, we can, Pablo. Are you able to hear me?

Pablo Zwanik: Yes, sorry. Did you hear my question? I’m sorry, I don’t know what happened there.