The vertically integrated cannabis and hemp brand Stem Holdings, Inc. STMH STEM announced a joint venture Tuesday with the vertically integrated Massachusetts company Community Growth Partners.
Massachusetts Notches $420M In Year 1 Sales
Stem's joint venture partners it with CGP and its provisionally licensed operations in the Massachusetts adult use market.
December 2019 data from the state revealed that the first year of legal sales generated more than $420 million in sales.
CGP, a minority- and women-owned business, was awarded three provisional licenses to grow, manufacture and sell its products in the state.
Per the agreement, Stem will acquire 49% of CGP's common stock. CGP will be provided with a line of revolving credit for its Massachusetts expansion efforts. The plans for the joint venture call for Stem to license and market CGP's Rebelle line in four states: California, Oregon, Oklahoma and Nevada.
"CGP's founder, Charlotte Hanna, has had a successful career in finance, most recently at Goldman Sachs, and she has created a dynamic business model that we can extend into new markets in combination with Stem's expertise as a current multi-state operator," Stem CEO Adam Berk said in a statement.
Stem Plans Cultivation, Dispensary Operations
Stem said it plans to launch dispensary operations in spring 2020 and an indoor grow and manufacturing site in Northampton in the fall.
Stem Holdings shares were down 2.3% at 85 cents at the time of publication.
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