Stem Holdings (OTCMKTS:STMH) Signs Letter of Intent to Acquire Colorado Harvest Company

Shares of Stem Holdings (OTCMKTS:STMH) ended lower in Tuesday’s trading session after announcing the news.

Market Action:

On Tuesday, STMH stock fell 5.27% at $0.2103 with more than 214.71K shares, compared to its average volume of 213.40K shares. The stock has moved within a range of $0.2103 – 0.2370 after opening the trade at $0.2370.

Major News

Stem Holdings d/b/a Driven by Stem, has announced that it has entered into a letter of intent for acquiring High Country Supply d/b/a Colorado Harvest Company (CHC), which is a one of Denver’s oldest and most respected vertically-integrated operators. The latter has two delivery permits, three retail dispensaries, and two cultivation facilities.

Stem was always looking to focus on the Colorado cannabis market, as it is the second largest in the nation and continues to grow exponentially. In the year 2020, it grew by a whopping 25% to reach annual sales of US$2.2 billion. Colorado Harvest Company is a perfect fit as it is one of the leaders in the cannabis industry and a consumer favorite, known for its exciting line up of proprietary in-house strains, and an extensive selection of quality concentrates and edibles.

In 2021, CHC is supposed to generate over $13,000,000 in revenues, with a projected gross margin of $5,070,000, upon completing over 180,000 retail transactions. Adam Berk, CEO of Stem is excited about the acquisition of CHC, and confident that the former will benefit from their expertise in cultivation and retail to further expand on existing operations.

Tim Cullen, CEO of Colorado Harvest Company, welcomes this move and ensures that customers will now have access to an exciting new products and services. Joining forces means a brighter future for both companies!