Stem Holdings, Inc. Closes Acquisition of Driven Deliveries, Inc.
The shares of common stock of the Company will continue to trade under Stem’s current symbols (OTCQX: STMH CSE: STEM).
Driven currently operates in California, the largest U.S. cannabis market which has a $4 billion run-rate for annual cannabis sales, and the fifth-largest economy globally. As reported by New Cannabis Ventures in October 2020, total unit sales in California grew 45%, with 700 dispensaries statewide, and 40% of the population living within 60 miles of a dispensary. The Company expects that Driven is poised to meet increasing demand and will accelerate the distribution of upcoming Stem products entering the market in 2021. The Company also expects that consumer cannabis purchasing post-pandemic will rely increasingly on home delivery, as with other consumer product categories.
Key expansion strategies in place for 2021 include:
Launch of Driven’s delivery platform in Oregon in Q1/CY21, focusing on Stem’s owned-brands to expand its distribution footprint, as well as brands that complement the portfolio. Launch of Stem’s Yerba Buena™ brand in California, its first new market for the brand. Known for both its THC and CBD proprietary genetics, products will include market-leading cultivars for flower and pre-roll. All products will be distributed by Driven or sold through the Company’s Northern California-based medical dispensary, Foothills Health & Wellness. Further expansion of additional new margin-accretive Stem brands and products starting in California, including Cannavore™ edibles now available in Oregon and Nevada, and TravisxJames™ vapes based on the success of the brand in Nevada. Distribution will expand into all new markets with Driven’s proprietary software providing speed to market. Launch of delivery services into Stem’s current and future markets.
‘This acquisition is a game-changer for the industry, for our valued customers, and for shareholders of Stem,” stated Adam Berk, Chief