BOCA RATON, Fla., July 02, 2019 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (OTCQB: STMH CSE: STEM) is pleased to announce that it has received regulatory approval from the Oregon Liquor Control Commission and officially closed the acquisition of Yerba Oregon, LLC d/b/a Yerba Buena, previously announced on October 10, 2018. Yerba Buena operates an award-winning state-of-the-art cultivation facility equipped with an in-house genetics program and a cannabis library consisting of a few hundred strains.
Under the terms of the definitive agreement, Stem will: (i) pay $350,000 USD in cash; (ii) enter into a $400,000 USD non-negotiable promissory note; and (iii) issue $3.86 million USD in Stem common shares to be issued in two tranches, with $1.58 million USD to be issued on closing at the then prevailing market price and $2.28 million USD to be issued in July 2019 at the then prevailing market price.
"Yerba Buena is an extraordinary brand that has set a high standard for sustainable cannabis growing practices and positive workplace environment," says Adam Berk, Stem's CEO. "The expertise and intellectual property assets that the Yerba Buena organization brings to Stem will expand our market positioning in Oregon and help accelerate our expansion efforts into other states."
"This merger provides Yerba Buena the opportunity to provide safe, sustainably produced cannabis on a much larger scale," says Preston Greene, General Manager of Yerba Buena.
Beyond being the only cannabis cultivator in the country to hold both Clean Green™ and Certified Kind responsible agriculture credentials, Yerba Buena has also developed an advanced, in-house cannabis genetics program that has generated a seed stock collection of a few hundred cultivars. Many of the proprietary Yerba Buena genetics have won numerous industry awards including Best CBD strain at the Cultivation Classic for two years running and Best Sativa and Best CBD strain at the Oregon Dope Cup. The cultivars are popular among consumers in Oregon market. Yerba Buena has been named Best Cannabis Farm in Portland 2018 and 2019.
Yerba Buena is consistently recognized for their workplace culture. Accolades include "50 Best Companies to Work for in Cannabis" by MG magazine and Entrepreneur Magazine's "Top 100 Cannabis Companies", and Yerba Buena made the 2019 list of the "100 Best Companies to Work for in Oregon" by Oregon Business Magazine. In addition, Yerba Buena was listed in Oregon's Top 10 Green Workplaces in 2017, 2018 and 2019 in acknowledgment for its sustainability efforts.
ABOUT STEM HOLDINGS, INC.
As a vertically integrated cannabis company, Stem has positioned itself as a pioneer in the industry with its state-of-the-art cultivation, processing, extraction, retail, and distribution processes. Stem has an interest in, or is in the process of acquiring an interest in, cannabis facilities in Nevada, Oklahoma, Oregon and California, and also participates in a research project in collaboration with Cornell University. Utilizing proprietary, sustainable cultivation techniques, Stem, or its affiliates, develop exceptional products that are safe and consist of lab-tested cannabis and CBD. Stem's partner consumer brands are award-winning and nationally known, and include: cultivators, TJ's Gardens and Yerba Buena; retail brands, Stem and TJ's; infused product manufacturers, Cannavore and Supernatural Honey; and a CBD company, Dose-ology. Stem's mission in supporting the health and happiness of people and the safety of the planet is evident through the Company's continued recognition for its community involvement, employee diversification and a top place to work in cannabis, dedication to environmental causes and outstanding leadership in the cannabis industry.
