Stem Holdings, Inc. Closes Acquisition of Pushed Deliveries, Inc. OTC Markets:STMH

Stem Holdings, Inc.

Stem Holdings to turn out to be Driven By Stem

Stem Holdings to come to be Driven By Stem

Acquisition Results in the 1st Vertically-Built-in Cannabis Business with an Built-in Shipping and delivery-as-a-Support (DaaS) Platform

Business Assignments US$75 Million Income in 2021

BOCA RATON, FL and LOS ANGELES, CA, Dec. 30, 2020 (Globe NEWSWIRE) — Stem Holdings, Inc. (“Stem” or the “Business”) (OTCQX: STMH CSE: STEM), a foremost vertically-integrated hashish and hemp branded products and solutions corporation with condition-of-the-art cultivation, processing, extraction, retail, and distribution functions throughout the United States, now introduced that it has accomplished its previously introduced acquisition (the “Acquisition”) of Driven Deliveries, Inc. (“Pushed”) (OTCQB: DRVD), an e-commerce and DaaS (shipping and delivery-as-a-provider) supplier with proprietary logistics and omnichannel UX (consumer knowledge)/CX (customer expertise) engineering.

The Acquisition was done below the terms of a definitive agreement and approach of reorganization, pursuant to which Driven shareholders received a person share of common stock of Stem for every Driven share held. The combined current market capitalization of the Organization, immediately after supplying effect to the Acquisition, is US$65 million, primarily based on the closing market place value of Stem on the OTCQB on December 29, 2020. The Enterprise is projected to have revenues of US$75M in CY21 and a merged gross gain of US$30 million. The Acquisition is predicted to be straight away accretive to earnings for every share of the Corporation. The shares of typical stock of the Organization are at this time investing at 1.25X existing product sales run rate.

The shares of typical stock of the Firm will continue on to trade beneath Stem’s present-day symbols (OTCQX: STMH CSE: STEM).

Driven at the moment operates in California, the greatest U.S. hashish market place which has a $4 billion operate-fee for once-a-year cannabis income, and the fifth-major financial state globally. As documented by New Hashish Ventures in Oct 2020, full unit income in California grew 45%, with 700 dispensaries statewide, and 40% of the populace residing in just 60 miles of a dispensary. The Corporation expects that Driven is poised to satisfy rising demand from customers and will speed up the distribution of forthcoming Stem goods entering the industry in 2021. The Business also expects that shopper hashish getting write-up-pandemic will depend ever more on household shipping and delivery, as with other consumer merchandise categories.

Essential expansion tactics in spot for 2021 contain:

• Launch of Driven’s supply platform in Oregon in Q1/CY21, concentrating on Stem’s owned-models to increase its distribution footprint, as well as brands that complement the portfolio.
• Start of Stem’s Yerba Buena™ brand in California, its 1st new industry for the model. Recognized for both its THC and CBD proprietary genetics, items will involve industry-major cultivars for flower and pre-roll. All products and solutions will be dispersed by Driven or bought by way of the Company’s Northern California-based mostly medical dispensary, Foothills Health & Wellness.
• Further more growth of further new margin-accretive Stem brand names and items starting off in California, which includes Cannavore™ edibles now accessible in Oregon and Nevada, and TravisxJames™ vapes based mostly on the success of the brand name in Nevada. Distribution will extend into all new markets with Driven’s proprietary computer software delivering velocity to industry.
• Launch of delivery companies into Stem’s recent and long run marketplaces.

‘This acquisition is a match-changer for the field, for our valued prospects, and for shareholders of Stem,” stated Adam Berk, Main Govt Officer of the Enterprise. “Stem is now uniquely poised to meet increasing desire in the evolving marketplace for prime top quality hashish with our remarkable brand names and omnichannel ability to make loyalty among the consumers who can now pick out no matter whether to purchase in-keep, by way of curbside select-up, or to have swift residence delivery at any time,” he ongoing. “And with study displaying that 68% of consumers count on to continue house delivery post-pandemic,¹ we will be in the finest situation to provider our customers in all present-day and foreseeable future marketplaces,” he concluded.

Check out www.drivenbystem.com for additional information and facts.

About Pushed By Stem

Pushed By Stem’s brand choices will include a number of cannabis product types, especially flower, extracts, edibles, and topicals with award-profitable brand names which includes TJ’s Gardens™ and Yerba Buena™ Cannavore™ an edible model and Doseology™, a CBD mass-industry brand name launching in 2021. As a hashish technology enterprise, Driven’s Budee™ and Ganjarunner™ e-commerce platforms are expected to associate with main cannabis providers in new geographies to satisfy the demand from customers for speedy and exact item deliveries.

Cautionary Note Regarding Forward-Looking Facts

This push release has statements that constitute “forward-searching information” within just the this means of relevant securities legal guidelines, including statements pertaining to the plans, intentions, beliefs and present expectations of the management of Stem with respect to long run organization pursuits. Ahead-wanting facts is usually determined by the words and phrases “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or comparable expressions and features details concerning: (i) the capability of the Business to integrate Driven’s technologies and to distribute Stem’s makes by way of these kinds of system (ii) expectations about the accretive nature of the Acquisition and the predicted mixed marketplace capitalization of the Company (iii) the expansion of the Company’s marketplace following the closing of the Acquisition and the capacity to scale operations (iv) the envisioned cost personal savings and other efficiencies adhering to the closing of the Acquisition and (v) the start of shipping providers into Stem’s current and upcoming marketplaces. Investors are cautioned that ahead-looking data is not primarily based on historical specifics but alternatively demonstrates the management of Stem’s anticipations, estimates or projections regarding potential final results or functions dependent on the opinions, assumptions and estimates of management considered acceptable at the date the statements are made. Though Stem believes that the expectations mirrored in these forward-on the lookout data are realistic, such details requires risks and uncertainties, and undue reliance should not be positioned on these information and facts, as unidentified or unpredictable variables could have content adverse outcomes on potential effects, effectiveness or achievements of the Firm. Amongst the key aspects that could lead to real results to vary materially from all those projected in the forward-looking information are the pursuing: modifications in common financial, business and political circumstances, like improvements in the money markets the capability of the Corporation to increase personal debt and fairness money in the amounts and at the expenditures that it expects adverse improvements in the general public perception of cannabis construction delays decreases in the prevailing selling prices for hashish and cannabis items in the marketplaces that the Business operates in adverse adjustments in applicable rules adverse changes in the application or enforcement of recent rules, like individuals related to taxation the incapability to identify and acquire acceptable providers, attributes and property vital to execute on the Company’s business enterprise strategies political hazard and growing prices of compliance with considerable government regulation. This ahead-seeking facts may possibly be afflicted by threats and uncertainties in the business enterprise of Stem and marketplace disorders.

Need to just one or extra of these dangers or uncertainties materialize, or ought to assumptions underlying the ahead-wanting data establish incorrect, precise effects may change materially from these described herein as supposed, planned, expected, believed, estimated or expected. Although Stem has tried to establish significant challenges, uncertainties and things which could cause precise final results to vary materially, there may possibly be some others that trigger success not to be as predicted, believed or supposed. Stem does not think any obligation to update this forward-seeking details besides as otherwise essential by applicable legislation.

No securities regulatory authority has in any way passed on the merits of the proposed transactions explained in this news release or has authorised or disapproved of the contents of this news release.

For additional data, be sure to call:

Media Get in touch with:
Mauria Betts
STEM HOLDINGS, INC.
[email protected]
971.319.0303

Investor Speak to:
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
[email protected]

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¹ Resource: Chainstoreage.com.