MariMed Completes Acquisition of Delaware’s First State Compassion Center
Companies entered into acquisition agreement in July 2023.
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MariMed Inc. has completed its acquisition of Delaware’s First State Compassion Center (FSCC) in accordance with the previously announced Omnibus Agreement the company entered into with FSCC in July 2023.
The acquisition integrates FSCC’s cultivation and processing facilities and two dispensaries into MariMed’s fully vertical operations.
To approve MariMed’s ownership of FSCC, the state permitted FSCC to transition from a not-for-profit to a for-profit business. MariMed says the timing is ideal, as Delaware is expected to commence adult-use cannabis sales later this year.
MariMed and FSCC have worked together since 2014, when MariMed assisted FSCC in securing its original cannabis license and began providing FSCC with management and real estate services. FSCC distributes MariMed’s portfolio of brands in Delaware.
With this development, MariMed has now completed the acquisition of its previously managed businesses in Massachusetts, Illinois, Maryland and Delaware, the results of each of which are now consolidated in the company’s financial statements.
“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. We expect by fully integrating its operations, we will further build FSCC’s and our brands’ dominance in the market, while also improving our balance sheet.”
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