Stem to Direct and Manage All Operations for Alternative Organics
Partnership Will be Immediately Accretive to Earnings
BOCA RATON, Fla., June 11, 2020 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (“Stem”) (OTCQB: 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, announced today they have entered into an operating partnership with Alternative Organics, LLC, a Southern Oregon cultivator and marketer of the Chunky Knob™ cannabis brand.
Alternative Organics operates a licensed facility in Medford, Oregon, which includes both light-deprivation greenhouses as well as outdoor cultivation. As part of the agreement, Stem will act as director and manager of all the day-to-day business operations, with Alternative Organics continuing to control the company. Stem will leverage its existing footprint in Oregon, where it cultivates and sells its award-winning brands throughout the state, in order to enhance Alternative Organic’s organic cultivation practices and leverage their proprietary cultivars.
Terms of the operating partnership were not publicly disclosed. The partnership agreement is effective immediately and will be accretive to Stem’s earnings.
“Our partnership with Alternative Organics is an important step as we strategically expand our presence in the Oregon cannabis market,” stated Adam Berk, CEO of Stem Holdings. “We believe our cultivation expertise and success in marketing our cannabis brands combined with their genetics and brand equity will position both companies for growth as we will look to introduce our tested methods and business management skills to this high-potential facility,” Mr. Berk concluded.
Adam Reich, Co-CEO of Alternative Organics, stated, “We are very pleased to partner with Stem Holdings to help guide and manage the growth of our company. With Stem’s proven experience and leadership in the cannabis market, we will be able to accelerate our plans for the Chunky Knob™ brand and other new initiatives in order to deliver valuable, new products to the market. We look forward to a long and fruitful relationship between our two companies.”
About Stem Holdings, Inc.
Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) is a leading cannabis and hemp branded products company in the U.S. with proprietary capabilities in sustainable cultivation, processing, extraction, and R&D, as well as retail and distribution operations aligned with state-by-state regulations. Stem’s award-winning brands are the foundation of the Company’s expansion into current and new segments and markets, with exceptional and disruptive brands and products that benefit well-being. Stem’s expertise and scale will drive growth domestically and internationally, building value for shareholders.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the management of Stem with respect to future business activities. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include information regarding: (i) the ability of the Company to successfully achieve its business objectives, (ii) plans for expansion of Stem, (iii) expectations for other economic, business, and/or competitive factors, and (iv) anticipated growth.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect the management of Stem’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Stem believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company’s business plans; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Stem and market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Stem has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Stem does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
No securities regulatory authority has in any way passed upon the merits of the proposed transactions described in this news release or has approved or disapproved of the contents of this news release.
For further information, please contact:
Media Contact:
Mauria Betts
STEM HOLDINGS, INC.
Mauria@stemholdings.com
Investor Relations:
John Mills
ICR, LLC
(646) 277-1254
john.mills@ICRinc.com