BOCA RATON, Fla., July 18, 2019 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (OTCQB: STMH CSE: STEM) (the "Company" or "Stem") is pleased to provide a corporate update on the Company's recent accomplishments in the hemp and cannabis market.
RECENT U.S. MILESTONES
California
July, 2019 Stem signed an LOI with Seven Leaf Ventures Corp. ("7LV"), to acquire all of the issued and outstanding shares and other securities of 7LV. 7LV operates retail dispensary assets which generated US$5.6 million in revenue, US$1.8 million in gross profit in 2018 and is expected to generate US$8.0 million in revenue, US$2.2 million in gross profit in 2019.
Also in California, construction has begun on the San Diego cultivation and distribution facility. Construction for the property is scheduled for completion in Q4 of calendar 2019.
Nevada
Stem finished its inaugural cannabis harvest at the 6,000 square foot Nevada facility. The harvest included TJ’s Gardens Durban Poison, a cannabis cultivar named “Best Tasting Bud on Earth” by High Times Magazine. The cannabis flower will be sold in Nevada dispensaries in August under Stem’s Travis x James brand.
The packaging for Stem’s edibles line, Cannavore, has been approved by the Nevada Department of Taxation. Cannavore’s Nevada offerings will initially include salted caramels, double chocolate chip cookies, and classic chocolate chip cookies. The edibles will be sold in the Nevada market in Q3 of calendar 2019.
In addition, the Company entered into a licensing agreement with Grön Chocolate and Confections ("Grön"), a top-selling edibles brand known for high-quality consumer packaged edible cannabis products. The agreement will enable Stem to supply the popular Grön gummy line to the Nevada cannabis market. Grön edibles are scheduled to launch in Nevada dispensaries
in early Q4 of calendar 2019.
Oregon
Stem completed its first cannabis harvest at its 14 acre Mulino cultivation facility, outside of Portland. The initial harvest yielded over 600 pounds of cannabis that will be sold as bulk flower, pre-rolls and extracts.
At the newly renovated, 28,000 square foot 42nd Street cultivation and processing facility, the first cannabis crop has been planted. The crop will be harvested in Q3 of calendar 2019.
The cannabis is being cultivated in 1,100 square foot, clean grow rooms that utilize cutting-edge lighting and ventilation systems. The grow rooms are expected to collectively produce over 2,500 pounds of cannabis flower annually.
The Company received regulatory approval from the Oregon Liquor Control Commission (OLCC) and officially closed the acquisition of Yerba Oregon, LLC d/b/a Yerba Buena ("Yerba Buena"). Yerba Buena operates an award-winning state-of-the-art cultivation facility equipped with an in-house genetics program and a cannabis library consisting of a few hundred strains.
Stem has entered into a licensing agreement with GCH, Inc. to produce and distribute WILLIE'S RESERVE™ ("Willie's Reserve"), a nationally recognized brand inspired by legendary musician and cannabis-rights activist, Willie Nelson. The agreement will enable Stem to provide live-resin vape cartridges and pre-rolled flower pre-packs to the Oregon market. Willie’s Reserve will be sold in Stem’s Oregon retail locations and additional dispensaries across the state in early August.
Oklahoma
Stem opened its first retail storefront in the Oklahoma medical market on June 29th, 2019. The Oklahoma City property has undergone expansive renovations to become a premier retail destination in the midwest. The store benefits from having over 87,000 people and 69,135 daytime employees within a 3-mile radius.
In the Oklahoma retail stores, Stem launched its CBD Hemp Brand, Dose-ology. The brand currently offers tinctures, vape pens, and CBD pre-rolls. Dose-ology will expand its offering in Q3 of calendar 2019. A variety of effective hemp topicals including, pain cream, eye serum, and massage oil, will soon be available to consumers nationwide through Dose-ology's e-commerce website and additional retail stores.
CANNABIS CULTIVATION RESEARCH LICENSE IN ST. VINCENT & THE GRENADINES (SVG)
In May, Stem announced the Company had been awarded a research license to cultivate cannabis in the Caribbean country of St. Vincent & the Grenadines (SVG). The research is conducted in collaboration with and under the supervision of the Bureau of Standards of SVG and the Cannabis Research and Development Unit within the Ministry of Agriculture Forestry, Fisheries, Rural Transformation, Industry, and Labor.
"We believe SVG offers an extremely rich agricultural environment capable of producing and exporting some of the highest quality medicinal cannabis in the world," said Stem Director of Business Development Dr. Geoff Ostrove. "We are thrilled to be working alongside their local government and growers to deploy our Company's expertise in cannabis cultivation and extraction, along with the latest growing technology and genetic intellectual property. Our goal is to establish a successful infrastructure that will benefit the Caribbean community and our shareholders."
To learn more about these from Stem Holdings, Inc. visit stemholdings.com/investor-news
ABOUT STEM HOLDINGS, INC.
As a vertically integrated cannabis company, Stem has positioned itself as a pioneer in the industry with its state-of-the-art cultivation, processing, extraction, retail, and distribution operations. Stem owns cannabis facilities in Nevada, Oklahoma, and Oregon, and also participates in a research project in collaboration with Cornell University. Utilizing proprietary, sustainable cultivation techniques, Stem develops exceptional products that are safe and consist of lab-tested cannabis and CBD. Stem's partner consumer brands are award-winning and nationally known and include: cultivators, TJ's Gardens and Yerba Buena; retail brands, Stem and TJ's; infused product manufacturers, Cannavore and Supernatural Honey; and a CBD company, Dose-ology. Stem's mission in supporting the health and happiness of people and the safety of our planet is evident through the Company's continued recognition for its community involvement, employee diversification and a top place to work in cannabis, dedication to environmental causes and outstanding leadership 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 information regarding: (i) the timing of the product launches in the U.S.; (ii) expectations for other economic, business, and/or competitive factors; and (iii) expectations around timing of the construction of the California facility.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect 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; the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; construction delays; 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; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company's business plans; 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.
For further information, please contact:
Media Contact:
Mauria Betts
Director of Branding and Public Relations
(971) 266-1908
mauria@stemholdings.com
Investor Relations:
John Mills
ICR, LLC
(646) 277-1254
john.mills@ICRinc.com