MariMed Extends Series B Preferred Stock Obligation Through 2031, Strengthening Capital Structure

Rhea-AI Summary

MariMed (CSE: MRMD; OTCQX: MRMD) reached a Restructuring and Exchange Agreement to extend and reprofile its $14.725 million Series B Convertible Preferred Stock obligation.

The deal removes a February 28, 2026 mandatory conversion, lengthens weighted average maturity by 4.6 years, and issues a $2.0M note (8% maturing Mar 2028), a $6.0M note (10% maturing Mar 2031), and $6.725M of Series B preferred at $0.25 per share, convertible February 2031.

Positive

• Weighted average maturity extended by 4.6 years
• Near-term refinancing risk materially reduced by removing 2026 conversion
• Long-dated unsecured debt issued totaling $8.0 million
• Equity component preserved $6.725 million tied to conversion feature

Negative

• Higher interest cost from 8% and 10% promissory notes
• Potential shareholder dilution from $6.725M Series B conversion in Feb 2031

NORWOOD, Mass., March 02, 2026 (GLOBE NEWSWIRE) -- MariMed Inc. (“MariMed” or “the Company”) (CSE: MRMD) (OTCQX: MRMD), a leading cannabis consumer packaged goods company and retailer, announced today that it has entered into a Restructuring and Exchange Agreement (the “Agreement”) with the holders (the “Holders”) of its $14.725 million Series B Convertible Preferred Stock (the “Series B Obligation”). The restructuring extends the maturity of the Company’s obligations on favorable market terms.

The Agreement eliminates the Company’s February 28, 2026 mandatory conversion date obligation and replaces it with a combination of long-dated instruments. As a result, the transaction extends the weighted average maturity of the obligation 4.6 years, significantly reducing near-term refinancing risk and enhancing the Company’s liquidity profile.

Under the Agreement, the Company issued:

• a $2 million promissory note maturing in March 2028, bearing interest at 8 percent with a two-year term;
  
  
• a $6 million promissory note maturing in March 2031, bearing interest at 10 percent with a five-year term; and
  
  
• $6.725 million of Series B Convertible Preferred Shares, valued at $0.25 per share, which are subject to mandatory conversion in February 2031, unless converted earlier pursuant to its terms.
  
  

Additional details of the restructuring are available in a Form 8-K filed by the Company earlier today that is accessible on MariMed’s Investor Relations website at ir.marimedinc.com.

“We are pleased to successfully complete the restructuring, which meaningfully extends the maturity profile of the obligation and enhances our financial flexibility,” said MariMed CEO Jon Levine. “By eliminating this 2026 obligation, we have strengthened our balance sheet and positioned the Company to focus on executing our growth initiatives. The obligation as restructured includes both unsecured debt at favorable market rates and an equity component with a conversion feature at a significant premium to current market. We thank the Holders for their cooperative and collaborative approach to the restructuring and sharing the vision of MariMed’s future.”

About MariMed
MariMed Inc. is a leading multi-state cannabis operator, known for developing and managing state-of-the-art cultivation, production, and retail facilities. Our award-winning portfolio of cannabis brands, including Betty's Eddies™, Bubby’s Baked™, Vibations™, InHouse™, and Nature’s Heritage™, sets us apart as an industry leader. These trusted brands, crafted with quality and innovation, are recognized and loved by consumers across the country. With a commitment to excellence, MariMed continues to drive growth and set new standards in the cannabis industry. For additional information, visit www.marimedinc.com.

Company Contact:
Howard Schacter
Chief Communications Officer
Email: hschacter@marimedinc.com
Phone: (781) 277-0007

FAQ

What did MariMed (MRMD) announce on March 2, 2026 about its Series B obligation?

MariMed extended and restructured its $14.725 million Series B obligation into long-dated instruments. According to the company, the transaction removes a Feb 28, 2026 mandatory conversion and lengthens weighted average maturity by 4.6 years.

How much debt did MariMed (MRMD) issue and when do the notes mature?

MariMed issued $8.0 million of promissory notes in the restructuring. According to the company, a $2.0M note matures March 2028 at 8% and a $6.0M note matures March 2031 at 10%.

What are the terms of the reissued Series B preferred for MRMD shareholders?

The company issued $6.725 million of Series B preferred valued at $0.25 per share. According to the company, these preferred shares are subject to mandatory conversion in February 2031 unless converted earlier under their terms.

How does the MRMD restructuring affect MariMed's near-term liquidity and refinancing risk?

The restructuring reduces near-term refinancing pressure by removing the 2026 conversion obligation. According to the company, the weighted average maturity extension of 4.6 years meaningfully improves the company's liquidity profile and financial flexibility.

What are the investor implications of MariMed's (MRMD) restructured obligation?

Investors face increased interest expense from new 8% and 10% notes and potential equity dilution in 2031. According to the company, the transaction strengthens the balance sheet while combining unsecured debt and a conversion-capable equity component.