Stem Holdings, Inc. (OTCQB: STMH CSE: STEM) (the “Company” or “Stem”), a leading vertically-integrated cannabis and hemp company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, is pleased to announce that it has entered into a stock purchase agreement with Attollo Capital Holdings A, LLC (the “Purchaser”) pursuant to which Stem will issue 11,764,706 shares of preferred stock of the Company (the “Preferred Stock”) at a purchase price of US$0.85 per share of Preferred Stock (the “Original Issue Price”) for gross proceeds to the Company of approximately US$10,000,000 (the “Investment”).
Closing of the Investment is expected to occur immediately following satisfaction of customary closing conditions.
The Investment will allow Stem to accelerate currently identified opportunities and provides additional capital to pursue opportunities to execute the Company’s growth strategy. Initial use of funds is expected to include:
“We are pleased to enter into this agreement with Attollo Capital as their investment allows Stem to expand into Massachusetts, increase production capacity and distribution of our Travis x James brand in Nevada, launch Stem branded CBD stores and launch production and national distribution of medically-directed CBD products through our partnership with Apex Brands,” said Adam Berk, Chief Executive Officer of Stem. “Stem is in a position to deliver on our mission of creating world-class consumer products that promote well-being as we build and expand our portfolio