MariMed Statement on Historic Rescheduling of Cannabis

Core Viewpoint - The reclassification of cannabis as a Schedule III drug by the Trump Administration is a significant reform that acknowledges its medical uses and low abuse potential, which will have long-term benefits for the cannabis industry [2]. Group 1: Impact of Reclassification - The reclassification is expected to accelerate accredited medical research into cannabis-derived medications, leading to increased consumer acceptance of cannabis as an alternative to opioids for chronic pain, sleep, anxiety, and other ailments [3]. - State-legal cannabis businesses will benefit from the removal of the IRS Section 280E tax penalty, allowing compliant operators like MariMed to be taxed similarly to other consumer packaged goods sectors, which will enhance profitability and free cash flow [4]. Group 2: Company Overview - MariMed Inc. is recognized as a leading multi-state cannabis operator, specializing in the development and management of advanced cultivation, production, and retail facilities [4]. - The company boasts an award-winning portfolio of cannabis brands, including Betty's Eddies™, Bubby's Baked™, Vibations™, InHouse™, and Nature's Heritage™, which are well-regarded by consumers nationwide [4].