{"id":406558,"date":"2020-12-30T09:03:08","date_gmt":"2020-12-30T14:03:08","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=406558"},"modified":"2020-12-30T09:03:08","modified_gmt":"2020-12-30T14:03:08","slug":"stem-holdings-inc-closes-acquisition-of-driven-deliveries-inc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/stem-holdings-inc-closes-acquisition-of-driven-deliveries-inc\/","title":{"rendered":"Stem Holdings, Inc. Closes Acquisition of Driven Deliveries, Inc."},"content":{"rendered":"
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\n Stem Holdings to become Driven By Stem<\/em><\/strong>\n <\/p>\n

Acquisition Creates the First Vertically-Integrated Cannabis Company with an Integrated Delivery-as-a-Service (DaaS) Platform <\/p>\n

Company Projects US$75 Million Revenue in 2021<\/p>\n

\n BOCA RATON, FL and LOS ANGELES, CA, Dec. 30, 2020 (GLOBE NEWSWIRE) — <\/strong>Stem Holdings, Inc. (\u201cStem<\/strong>\u201d or the \u201cCompany<\/strong>\u201d) (OTCQX: STMH CSE: STEM), a leading vertically-integrated cannabis and hemp branded products company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations throughout the United States, today announced that it has completed its previously announced acquisition (the \u201cAcquisition<\/strong>\u201d) of Driven Deliveries, Inc. (\u201cDriven<\/strong>\u201d) (OTCQB: DRVD), an e-commerce and DaaS (delivery-as-a-service) provider with proprietary logistics and omnichannel UX (user experience)\/CX (customer experience) technology.<\/p>\n

The Acquisition was completed under the terms of a definitive agreement and plan of reorganization, pursuant to which Driven shareholders received one share of common stock of Stem for each Driven share held. The combined market capitalization of the Company, after giving effect to the Acquisition, is US$65 million, based on the closing market price of Stem on the OTCQB on December 29, 2020. The Company is projected to have revenues of US$75M in CY21 and a combined gross profit of US$30 million. The Acquisition is expected to be immediately accretive to earnings per share of the Company. The shares of common stock of the Company are currently trading at 1.25X current sales run rate.<\/p>\n

The shares of common stock of the Company will continue to trade under Stem\u2019s current symbols (OTCQX: STMH CSE: STEM).<\/p>\n

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<\/em> 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.<\/p>\n

Key expansion strategies in place for 2021 include:<\/p>\n