Form 4: Marimed Inc. President and CEO Jon R. Levine Reports Changes in Beneficial Ownership

Jon R. Levine, President and CEO of Marimed Inc., reports the vesting of Restricted Stock Units (RSUs) and subsequent tax withholding, resulting in changes to his beneficial ownership of common stock.

Summary

• On November 7, 2024, Jon R. Levine, President and CEO of Marimed Inc., had 150,000 Restricted Stock Units (RSUs) vest, which converted to common stock on a one-for-one basis.
• The company withheld 44,026 shares of common stock to satisfy tax withholding obligations related to the vesting of the RSUs at a price of $0.1505 per share.
• Following these transactions, Levine directly owns 20,538,461 shares of common stock and indirectly owns 6,684,640 shares through the Jon Levine Family Trust.
• The RSUs were granted on November 7, 2023, and vest in installments, with one-third vesting on November 7, 2024, and the remaining two-thirds vesting in four equal installments on May 7, 2025, November 7, 2025, May 7, 2026, and November 7, 2026.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the filing primarily reflects routine transactions related to executive compensation. The vesting of RSUs is a planned event and the tax withholding is a standard procedure.

Positives

• The vesting of RSUs indicates a continued alignment of executive compensation with company performance.

Future Outlook

The remaining two-thirds of the RSUs will vest in four equal installments on May 7, 2025, November 7, 2025, May 7, 2026 and November 7, 2026.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders, allowing investors to track changes in ownership and potential alignment of interests.

Comparison to Industry Standards

• Executive compensation packages often include RSUs to align management's interests with shareholder value, a common practice among publicly traded companies like Marimed Inc.
• The vesting schedule of the RSUs, with installments over several years, is a typical approach to incentivize long-term performance, similar to practices seen at companies such as Trulieve Cannabis Corp. and Curaleaf Holdings Inc.

Stakeholder Impact

• The vesting of RSUs and subsequent tax withholding may have a minor dilutive effect on existing shareholders.

Key Dates