Stem Holdings Announces Closing of Agreements to Sell Cannabis License in Massachusetts for $1.65 Million

Rhea-AI Summary

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.

Positive

• Closed sale of minority equity stake in Massachusetts cannabis license for $1.65 million in cash.
• Strengthening working capital allows focus on Oregon operations and Sacramento dispensary.

Negative

• None

BOCA RATON, Fla., April 18, 2022 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (OTCQX: STMH) (CSE: STEM) (the “Company” or “Stem”), a vertically integrated cannabis multi-state operator, is pleased to announce the closing of a stock purchase and note purchase agreement to sell its minority equity ownership interest in its Massachusetts cannabis license for a total of $1.65 million in cash on April 13, 2022.

Matthew Cohen, CEO and CFO of Stem Holdings, commented, “We are pleased to have closed on the purchase of our equity stake in Massachusetts, providing us with further working capital, which enables our company to continue to successfully execute on our restructuring plan and focus our resources on all Oregon locations and the dispensary in Sacramento, California. We are evaluating other options to monetize non-core assets to strengthen our working capital as well as our balance sheet.”

About Stem Holdings, Inc.
Stem is a multi-state, vertically integrated, cannabis company that, through its subsidiaries and its investments, is engaged in the cultivation, processing, packaging, distribution and branding of cannabis, hemp and their derivatives, including oils, edibles, concentrates. Additionally, the Company purchases, improves, leases, operates, and invests in properties for use in the production, distribution and sales of cannabis and cannabis-infused products licensed under the laws of the states of Oregon, Nevada, California, Massachusetts, and New York. As of December 31, 2021, Stem had ownership interests in 24 state-issued cannabis licenses including nine (9) licenses for cannabis cultivation, three (3) licenses for cannabis processing, two (2) licenses for cannabis wholesale distribution, three (3) licenses for hemp production and seven (7) cannabis dispensary licenses.

Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives, intentions and expectations with respect to the future business, operations, expected financial position as a result of the divestiture of Driven Deliveries, and phrases containing words such as “ongoing”, “estimates”, “expects”, or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions “will”, “may”, “could”, or “should” occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
+1 212.896.1254
valter@kcsa.com

Media Contact:
Mauria Betts
Director of Branding and Public Relations
971.266.1908
mauria@stemholdings.com

FAQ

What is the significance of Stem Holdings selling its Massachusetts cannabis license?

The sale, which closed for $1.65 million, enhances Stem Holdings' working capital to support its restructuring plan and operational focus.

When was the sale of the Massachusetts cannabis license completed by Stem Holdings?

The sale was completed on April 13, 2022.

How much did Stem Holdings receive from the sale of its Massachusetts cannabis license?

Stem Holdings received $1.65 million in cash from the sale of its minority equity stake in the Massachusetts cannabis license.

What are the future plans for Stem Holdings following the sale of its Massachusetts license?

Stem Holdings plans to focus resources on its operations in Oregon and California, while evaluating other non-core asset monetization options.