The MariMed (MRMD) deal with AGRiMED is interesting on a number of levels. As is the partnership and development arrangement between Univec and AGRiMED. First, it appears MariMed is looking to gain geographical market share and size, and purchasing the AGRiMED grow/processing facility in Pennsylvania allows MariMed entry into the lucrative PA market. However, AGRiMED is the holding company for a group of companies including Sativeo, and Hemp Commodity Industries. Each subsidiary and partner have their own sphere of influence, and could greatly increase the geographical reach of MariMed should this arrangement continue and even grow. While we do not know the full details of the arrangement between MariMed and AGRiMED, we can say that these two companies now have a relationship that could lead to something bigger down the line.
Sativeo is centered in South Carolina, where it has a 100,000 square foot grow and processing facility. Sativeo is privately owned, and their grow facilities are often registered under individual owner's names instead of the Sativeo name, so it is difficult to determine the location, the total number of facilities, and the exact size of these facilities. HCI is set up similarly. HCI's headquarters is located in Washington D.C., and HCI's CEO has his own hemp farm located in Maine where he currently resides. However, HCI has spent at least the last seven or eight years working with farmers throughout the South to get them to convert from cotton and tobacco farming to hemp farming. HCI has developed a relationship with these farmers that will likely bind them to HCI when they decide to pursue hemp farming. Doctor Eric I. Mitchell, the CEO of HCI, told me that once the Farm Bill is approved hemp will then become a cash crop, and the farms HCI has been working with could all be pulled together. This is potentially HUGE. The number of states involved, and the number of acres, could change all definitions of what a cannabis company can be.
We learned by way of the MariMed 10Q that a partnership agreement has been brokered between MariMed, Univec, and AGRiMED. Doctor David Dalton handled the negotiations for this deal, and it appears Univec will be the primary beneficiary of the deal. Details related to this deal will be forthcoming in future press releases once Univec’s financials are complete. So how does this deal benefit investors in UNVC.
MariMed’s Vitiprints Proprietary Cannabis Printing Technology
* Platform creates new categories of precision dosed dissolvable cannabis products at efficiencies unsurpassed in the industry.
* Cannabis-infused medium enables rapid delivery sublingually, transdermally, or in liquid.
* The Vitiprints platform efficiently layers ingredients and graphic design, offering endless options for amazing customer products and experiences. In effect, MariMed’s Vitiprints technology will allow Univec to custom tailor products to every customer’s individual needs. This means custom logos can be printed along with specific doses and layers of cannabis molecular combinations targeting every imaginable medical ailment in varying dosages to meet individual needs.
“Our exclusive agreement with Vitiprints puts MariMed on the forefront of precision-dosed branded cannabis products and technology that will, above all, delight consumers with a revolutionary product category and experience,” said Robert Fireman, MariMed CEO. “This innovative technology enables creation of infused cannabis products which can be specifically designed for dosage, flavor, and supplements to achieve the desired effect or result. These products can be manufactured at speeds and efficiencies that will create cost savings for producers and consumers, while generating significant incremental revenue streams for MariMed from sales and sublicensing agreements.”
MariMed expects to complete test marketing of the dissolvable product sets in a MariMed-managed facility within 90 days (announced in August and that brings us to December), then launch in legal states across the country, and finally expand worldwide via sublicense agreements with qualified manufacturers and distributors. Products will be available on shelves as early as the end of Q4 2018.
“Vitiprints is ideally suited and ‘future proof’ against the widely differing and ever-changing cannabis regulations regarding dosing, formulation and appearance, enabling instant modification via the user interface versus a complete product redesign,” said Ryan Crandall, MariMed VP of Brand and Licensing.
“Furthermore, we are able to engage customers by using printed design layers as a touch point into our customer education and engagement portal, in turn generating loyalty and feedback. It’s a dream come true for product development and marketing teams,” Crandall added.
It is reasonable to speculate that this partnership between MariMed and AGRiMED, with Univec in the center, could be the beginning of a Mega-corporation in the not too distant future. Time will tell. However, this Vitiprints technology side steps many of the problems faced by transdermal patches currently on the market. First, the dosage is precise and tailored to specific needs. Second, the use of Vitiprints technology does not produce a “wet” product that one can “squeeze” the cannabis ingredients out of (perhaps to make a less legal product). While some patches utilize a “pocket of liquid ingredients,” Vitiprints technology is dry and dissolves when the ingredients absorb through the skin. The pharmaceutical grade cannabis used in the Univec/AGRiMED and now MariMed transdermal patch is of the highest quality and guaranteed consistency of anything currently found on the market, and this patch will be difficult to duplicate because the technology is proprietary. It appears MariMed wins, Univec wins, and so does AGRiMED.