Stem Holdings Announces the Closing of the Acquisition of Seven Leaf Ventures, a Sacramento, California Dispensary, and the Appointment of Arthur H. Kwan to its Board of Directors – GlobeNewswire


BOCA RATON, FL, March 06, 2020 (GLOBE NEWSWIRE) — Stem Holdings, Inc. (OTCQX: STMH, CSE: STEM) (“Stem” or the “Company”) a leading vertically-integrated cannabis and hemp branded products company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, is pleased to announce that it has closed its previously announced acquisition on December 24, 2019 of Seven Leaf Ventures Corp. (“7LV”), a private Alberta corporation, and its subsidiaries, pursuant to the terms of a share purchase agreement dated March 6, 2020 (the “Acquisition”). 7LV owns Foothills Health and Wellness, a medical dispensary, in the greater Sacramento, California area (the “Sacramento Dispensary”). The Sacramento Dispensary is expected to drive synergies with Stem’s premium branded dispensaries in Oklahoma City, OK, and in Eugene and Portland, OR. Stem also expects that the Sacramento Dispensary will receive its recreational license in the near term. The Sacramento Dispensary’s 2020 projected gross revenue is C$8,500,000 and EBITDA of C$2,000,000 and will be immediately accretive to earnings. 7LV also has an option to acquire a dispensary in Los Angeles, California.”The acquisition of 7LV further solidifies Stem’s growth strategy by expanding operations in the largest U.S. cannabis markets,” says Ellen Deutsch, Executive Vice President and Chief Operating Officer of Stem Holdings. “We look forward to applying our proven execution abilities and exceptional standards for dispensary operations to enhance patient care and financial performance in California as we have done in Oregon and Oklahoma, as well as to extend our services to the recreational market upon approval,” she concluded.In connection with the Acquisition, Stem issued 11,999,008 shares of common stock of Stem (“Stem Shares”) to former shareholders of 7LV (“7LV Shares”). Stem issued an aggregate 682,000 Stem Shares and replacement 10% unsecured convertible debentures of Stem in the aggregate principal amount of C$3,410,000 (the “Replacement Debentures”), convertible into Stem Shares

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