Cannabis company MariMed announced a $20 million deal to acquire Kind Therapeutics, a vertically integrated medical marijuana business in Maryland.
The acquisition will expand Massachusetts-based MariMed’s presence from Massachusetts and Illinois into a third state, according to a news release issued Wednesday.
The $20 million purchase price will be paid with cash and promissory notes.
MariMed will also “acquire the minority interests of one of the current owners of Kind in two subsidiaries of the company that own cannabis facilities in Maryland and Delaware for $2 million in the aggregate.”
MariMed and Kind had agreed to a partnership and joint venture in 2016.
But the deal collapsed into litigation by Kind against MariMed and counterclaims by MariMed against Kind in 2019, according to a MariMed regulatory filing.
All litigation related to Kind will be dismissed upon closing of the deals, MariMed said.
The acquisition remains subject to closing conditions, including regulatory approvals.
Kind received its growing and processing licenses from Maryland’s medical marijuana regulators in 2017 and leases a facility from Mari Holdings, a MariMed subsidiary.
MariMed said Kind also has “a provisional license for a dispensary.”
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“Mari Holdings also owns and is developing a dispensary facility for Kind in Annapolis, which is expected to open in early 2022,” the MariMed release noted.
In April 2021, medical marijuana sales in Maryland surpassed $1 billion since the market launched at the end of 2017.
