BOCA RATON, FL,, March 19, 2020 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (OTCQX: STMH, CSE: STEM) ("Stem" or the "Company") a leading vertically-integrated cannabis and hemp branded products company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, is pleased to provide an update regarding its previously announced acquisition of Seven Leaf Ventures Corp. ("7LV"), a private Alberta corporation, and its subsidiaries, which closed on March 6, 2020 (the "Acquisition"). Pursuant to the Acquisition, Stem now owns Foothills Health and Wellness, a medical dispensary, in the greater Sacramento, California area (the "Sacramento Dispensary"), which is expected to drive synergies with Stem’s premium branded dispensaries in Oklahoma City, OK and in Eugene and Portland, OR.
As previously disclosed, the Sacramento Dispensary’s 2020 projected gross revenue is C$8,500,000 and EBITDA of C$2,000,000 and will be immediately accretive to earnings. Additionally, on the closing of the Transaction, the Sacramento Dispensary had US$120,000 in cash and US$378,000 in inventory, which Stem has assumed as a result of the Acquisition. Stem also received approximately US$525,000 in advances from Seven Leaf prior to the closing of the Acquisition.
"The acquisition of 7LV further solidifies Stem’s growth strategy by expanding operations in the largest U.S. cannabis markets," says Ellen Deutsch, Executive Vice President and Chief Operating Officer of Stem Holdings. "We look forward to applying our proven execution abilities and exceptional standards for dispensary operations to enhance patient care and financial performance in California as we have done in Oregon and Oklahoma, as well as to extend our services to the recreational market upon approval," she concluded.
About Stem Holdings, Inc.
Stem Holdings, Inc. (OTCQX:STMH CSE:STEM) is a leading cannabis and hemp branded products company in the U.S. with proprietary capabilities in sustainable cultivation, processing, extraction, and R&D, as well as retail and distribution operations aligned with state-by-state regulations. Stem's award-winning owned- and partner-brands including TJ’s Gardens™ and Yerba Buena™ are the foundation of the Company’s expansion within current as well as new segments and markets, with exceptional and disruptive brands, and products that benefit well-being. Stem's expertise and scale will drive growth domestically and internationally with a continuing commitment to social responsibility and shareholder equity as a leader in the cannabis industry.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the management of Stem with respect to future business activities. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include, without limitation, information regarding: (i) the accretive value of the acquisition of the Sacramento Dispensary on Stem’s existing portfolio of dispensaries; and (ii) the integration of the Sacramento Dispensary into Stem’s portfolio.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the management of Stem's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Stem believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; political risk; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Stem and market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Stem has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Stem does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
No securities regulatory authority has in any way passed upon the merits of the proposed transactions described in this news release or has approved or disapproved of the contents of this news release.
Director of Branding and Public Relations