BOCA RATON, Fla., April 28, 2021 /PRNewswire/ -- Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) (the "Company" or "Stem"), the first multi-state, vertically integrated Farm-to-Home™ (F2H) cultivation and technology omnichannel cannabis company featuring a proprietary Delivery-as-a-Service (DaaS) marketplace platform, today announced that it has teamed up with Organic Guyz, a Michigan Cannabis company, for the opening of its newest dispensary in the heart of Kalamazoo, Michigan this June. In addition, Stem will introduce its Budee e-commerce and delivery platform for the first time in the Midwest, in order to service the entire state of Michigan with future plans for expansion in adjacent markets.
Stem is a Farm-to-Home™ multi-state operator with dispensaries in three other states. This will be the second Stem branded dispensary in the country. Stem's acquisition of Driven Deliveries in December 2020 added Budee's omnichannel technology to its existing retail operations, enabling Stem to deliver to 92% of California residents with plans for expansion to other states including Michigan. Stem chose to expand to Michigan because of increased demand for home delivery in that state due to an expanding cannabis market, which has doubled in the last 12 months.1
"We have targeted Michigan as a growth market for Stem, recognizing the 179% increase in sales there last year.2 It remains an underserved opportunity and we are excited to work with Organic Guyz to offer the best line-up of products available in the state," stated Adam Berk, CEO of Stem. "Cannabis sales of $1.2 billion are projected in Michigan next year including both recreational and medical cannabis,3 and we are uniquely poised to service that market based on our operational experience," he continued. "Collectively, we are building a new dispensary as the first step in our plan there. Our ability to deliver the customer experience demanded by cannabis connoisseurs will allow us to quickly penetrate the market in Kalamazoo which has just 22 dispensaries and deliver locally and statewide to meet this growing demand with our Budee platform," he concluded.
Stem cultivates cannabis and hemp within its facilities on the West Coast, and its family of brands includes flower, pre-roll, edibles, concentrates and tinctures with disruptive new products launching this year as Stem expands the footprint of its brands.
"We are excited to work with the Stem team, and we share their passion and commitment to quality and service," stated Concetta Mazzetti, Organic Guyz's head of operations. "Stem's proven track record of success in other markets, and their dynamic approach to cannabis, were key factors in our decision to move forward together," she concluded.
The new Stem dispensary will be over 2500 square feet, and will be located on Portage Street, conveniently located near major roadways. There is sufficient parking for the delivery drivers since this is going to be one of our major delivery hubs for the state. An integrated marketing effort is planned for the grand opening which is anticipated to occur in Summer 2021.
About Stem Holdings, Inc.
Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. Stem's family of award-winning brands includes TJ's Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™, a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to: (i) the implementation of the Company's business plan; (ii) the expected expansion of the Michigan cannabis market; (iii) the expected opening of a dispensary in Michigan and the expected delivery activities in such state; and (iv) the potential expansion of the deliver business to adjacent states.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the implementation of the Company's business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, insurance, intellectual property and reliable supply chains; and risks related to the Company and its business generally. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
For further information, please contact:
STEM HOLDINGS, INC.
Valter Pinto / Elizabeth Barker
212.896.1254 / 212-896-1203
1 Source: https://www.metrotimes.com/detroit/michigans-legal-marijuana-industry-hits-record-sales-buoyed-by-new-products/Content?oid=26891892
2 Source: https://www.newcannabisventures.com/michigan-cannabis-sales-soar-179-to-record-146-million-in-march/
3 Source: https://www.mlive.com/public-interest/2021/04/michigan-marijuana-sales-break-1-billion-pace-insiders-expect-record-breaking-april.html
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SOURCE Stem Holdings, Inc.