STEM HLDGS INC - STMH STOCK NEWS

Stem Holdings, Inc. announced the effectiveness of its one for 100 reverse stock split, approved by shareholders and the Board of Directors. The company's Common Stock will continue to trade under the symbol STMH on the OTC Pink Sheets and STEM on the CSE. The reverse split will convert the company's 557,999,222 shares into 5,579,992 post-split shares, with all fractional interests rounded up to the nearest whole share. Investors with deposited Company common shares will have their shares automatically converted to shares of Stem by Depository Trust Company and brokerage firms, with no additional action required. Registered shareholders needing to contact the transfer agent should submit an online ticket at https://odysseytrust.com for service.

Stem Holdings, Inc. (STMH) announces the approval of the 8.00% unsecured convertible debentures' holders to amend the terms, repricing the conversion price and allowing the company to force the conversion at a new price. Approximately US$2.56 million of Convertible Debentures were outstanding as of the date of the announcement.

Stem Holdings, Inc. (STMH) has announced a proposed business combination with Headwaters, LLC, which involves a reverse takeover that may lead to listing on the CSE and OTCQB. The combined entity is projected to generate approximately $100 million in revenue for 2023, following a successful $75 million revenue in 2022 with positive adjusted EBITDA. The transaction is subject to stockholder and regulatory approval. Matthew Cohen, CEO of Stem, expressed confidence in leveraging Headwaters' cultivation capabilities for growth in the cannabis sector.

Stem Holdings, Inc. (OTCQB: STMH) has successfully completed a private placement of a USD$250,000 unsecured promissory note and 250,000 common share purchase warrants to an arm’s length lender. This funding initiative is aligned with the Company's strategy as a vertically integrated cannabis operator across Oregon, Nevada, and California. Stem Holdings holds ownership in 23 cannabis licenses, including cultivation, processing, distribution, and retail dispensaries, focusing on advancing its business portfolio in the cannabis industry.

Stem Holdings, Inc. (OTCQX: STMH) has announced a private placement of a USD$250,000 unsecured promissory note and 250,000 common share purchase warrants. The offering is expected to close on November 11, 2022. The note, with a 10% interest rate payable at maturity, will be due in three months but can be extended for an additional three months with a fee. Proceeds will support working capital and general corporate expenses. Stem operates in multiple states, holding significant cannabis licenses for cultivation, processing, and distribution.

Stem Holdings (OTCQX: STMH) has received approval from Warrantholders and Debentureholders for repricing convertible securities linked to its special warrant financing, maturing on September 14, 2022. Warrants will be issued at 167 common shares per $1,000 Debenture Unit, priced at C$0.20 each, while the Convertible Debentures will now have a repriced conversion price of C$0.10 per share. The maturity of the Convertible Debentures has been extended by three years, with provisions allowing for forced conversion if share prices exceed C$0.80 for ten consecutive days.

Stem Holdings, Inc. (OTCQX: STMH) is seeking approval from debentureholders to amend the terms of C$3,687,050 convertible debentures. The proposed changes include repricing the conversion price from C$1.15 to C$0.10 and extending the maturity by three years. Additionally, if shares exceed C$0.80 for ten consecutive days, the company may force conversion of the debentures. A total of 167 common share purchase warrants are to be issued for each $1,000 held, priced at C$0.20 for 24 months. Approval from 66 2/3% of debentureholders is required, and CSE acceptance is pending.

Stem Holdings, Inc. (OTCQX: STMH) has successfully closed a stock and note purchase agreement, selling its minority equity stake in a Massachusetts cannabis license for $1.65 million in cash as of April 13, 2022. This divestiture is aimed at bolstering the company's working capital to support its restructuring plan and focus on operations in Oregon and Sacramento, California. CEO Matthew Cohen emphasized plans to explore further options to monetize non-core assets to improve the company's financial position.

On February 8, 2022, Stem Holdings (OTCQX: STMH) announced the resignation of director Dennis Suskind, effective immediately, to pursue other interests. The company is not currently seeking a replacement for Mr. Suskind, acknowledging his contributions to the board. Stem Holdings operates as a vertically integrated cannabis company, holding 29 state-issued cannabis licenses across Oregon, Nevada, California, and Massachusetts, allowing for cultivation, processing, and distribution of cannabis products.