MariMed beats marijuana stock market following partnership with BSC Group
Good news for the cannabis industry has been few and far between since cannabis went legal up in Canada earlier this month, but Marimed Inc. (OTC:MRMD) is one significant exception. The United States-based cannabis consulting company closed up an incredible 15.17 percent to $4.48 Tuesday following the company’s recent announcement that they finalized the acquisition of New Jersey cannabis firm BSC Group, a multidisciplinary consulting company with a cannabis industry operational consulting focus.
The acquisition was considered a huge win for both MariMed and BSC Group according to statements given by leadership.
“Our team has worked with BSC Group on various projects in the past, and their laser focus made them an ideal partner to help fuel MariMed’s forward momentum,” said MariMed CEO Bob Fireman in a statement. “We are excited to bring on Amber and Brian, who have seasoned cannabis operations, corporate strategy, branding, and marketing expertise. An organization is only as good as the people in it. The Staffas share our vision and work ethic and will be a great addition to our team.”
The transaction will aid MariMed in gaining a presence in New Jersey which is close to legalizing marijuana use. As MariMed continues to pursue new opportunities throughout the United States, New Jersey is a good target state given these growth opportunities.
MariMed sees positive returns in recent trading sessions
MariMed is one of the only marijuana stocks that are up in the past five trading sessions, although, like most other cannabis stocks, they are down since the October 17. As of the time of this writing, MariMed was trading up 25.21 percent in the past five days compared to the Horizons Marijuana Life Sciences ETF (HMMJ.TO), which replicates the returns of the North American Marijuana Index and therefore is a good proxy for the overall cannabis market, which was down 10.59 percent in the same period.
Unlike many other struggling marijuana stocks, both MariMed and BSC Group are unique in that they are consulting firms focusing on advising marijuana industry players involved in cannabis production rather than manufacturing the product themselves. It might explain MariMed’s relative success in the bear marijuana stock market since they were not impacted by the marijuana shortages experienced by many suppliers following the opening of the Canadian market. The shortages led to a rough start for many pot companies, and massive selloffs followed.
Despite only providing consulting services and not holding marijuana assets themselves, this doesn’t mean that MariMed is immune to industry downturns. Their ability to generate business is dependent on marijuana company success rates and the ability to pay for consulting services. Additionally, the legal framework in the United States could hinder U.S.-based growth for the industry since the country has still not legalized marijuana at the federal level. Given their expansion in the U.S., however, they have strengthened their position for if it does, in fact, become legalized in the states.