MariMed has announced that the Illinois Department of Financial and Professional Regulation has approved the transfer of ownership of its two cannabis-licensed clients, KPG Anna and KPG Harrisburg. "The completion of these previously announced transactions will allow MariMed to report the operational results of these businesses in their consolidated financial statements effective October 1, 2019," the team with the company explains. "This acquisition moves MariMed closer to the completion of the consolidation of its cannabis client businesses it developed and manages in multiple states."
In June 2019, the State of Illinois legalized cannabis for adult use beginning January 1, 2020. Adult use licenses will be issued with priority given to medical license holders over new applicants. "Once the new law takes effect, MariMed expects to operate the Anna and Harrisburg locations as medical and adult use dispensaries and plans to open two additional adult use dispensaries bringing the total number of dispensaries to four," they further explain.
MariMed Inc. CEO Bob Fireman said, “The completion of this acquisition is a significant step forward in the implementation of our acquisition and roll-up strategy. The ownership of dispensaries in conjunction with Illinois’ legalization of cannabis for adult use should significantly enhance the revenues of these facilities. I am pleased that both Georgi and Rosie Naumovski, the previous owners, will remain on to assist MariMed with managing our Illinois operations and expansion initiatives.“