jariyawat | Adobe STock
Stem Holdings’ Q4 deal to acquire Driven Deliveries does more than simply provide the vertically integrated company a new suite of consumer-centric technology: It recasts the Florida-based multi-state operator as an outfit focused on data and last-mile logistics in a changing economy.
One easy takeaway: Delivery is a new and important cog in a cannabis portfolio.
The all-stock transaction clocks in at C$41.3 million ($31.5 million U.S. dollars) between the two publicly traded companies, both of which list on the OTCQX and the OTCQB, respectively, and will be now known as “Driven by Stem.” The combined market capitalization is expected to be (USD) $54 million based on the closing market prices of both companies’ shares, according to the official announcement from Stem Holdings.
“We will apply Driven Deliveries’ technology, footprint, and distribution capability to all markets, and leverage our own licenses and retail dispensaries to service more consumers in every state in which we operate,” Stem CEO Adam Berk said in a public statement.
Stem Holdings’ portfolio includes cultivation, processing and retail assets in Oregon, California, Nevada, Oklahoma and Massachusetts (as well as hemp cultivation assets in New York and Pennsylvania, and corporate headquarters in Florida). The company is perhaps best known for its ownership of TJ’s Gardens and Yerba Buena in Oregon.
Driven Deliveries has built a network that serves 92% of the California population with its Ganjarunner and Budee platforms, according to the company. Since Driven was founded in 2013, the direct-to-consumer retail landscape has changed dramatically.
In May 2020, Driven Deliveries reported it notched an 18% increase in new consumers over April and a more than 20% increase in gross collections. No doubt, the social effects of public health policies have led cannabis users to pursue delivery options