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Exclusive: Stem Holdings Acquires Seven Leaf Ventures

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Exclusive: Stem Holdings Acquires Seven Leaf Ventures

By Javier Hasse and Rodrigo Safdiye.

Vertically-integrated cannabis company Stem Holdings Inc (OTC: STMH) (CSE: STEM) on Tuesday will announce an agreement to acquire 100% of Seven Leaf Ventures Corp and its subsidiaries, as well as an option to acquire an unnamed dispensary in Los Angeles. The acquisition of 7LV is expected to boost Stem’s revenue and cash flow.

On Monday, Stem announced it has entered into a stock purchase agreement with Attollo Capital Holdings, as per which Stem will issue 11,764,706 shares of preferred stock at a price of $0.85. Total proceeds amount to approximately $10 million.

“Our capital raise and acquisition of Seven Leaf Ventures serve as proof points of Stem executing our growth plan," Adam Berk, CEO of Stem, told Benzinga. "With these transactions, Stem is well positioned to expand our profitable branded stores into Massachusetts and California, and increase production and distribution of our portfolio of premium cannabis CPG brands across our THC and CBD platforms.”

“Stem is the ideal partner for Seven Leaf Ventures and we are excited to join Stem’s portfolio of premium cannabis retail brands.  We look forward to expanding our footprint as Stem aggressively invests in the California retail cannabis industry,” said Arthur H. Kwan, current CEO of 7LV, who will join the Board of Directors of Stem.

“We are focused on partnering with market leading cannabis companies that have a unique opportunity to capitalize on the significant growth opportunities in the industry.  We are pleased to make this equity investment as we are confident in Stem’s management team and their ability to execute their growth plans,” concluded Stuart Sugarman, Chief Executive Officer of Attollo Capital.

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Posted-In: Seven Leaf VenturesCannabis News Markets Best of Benzinga

 

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