Stem Holdings Closes Deal To Acquire Driven Deliveries

Cannabis and hemp company Stem Holdings Inc. STMH STEM has closed the previously announced acquisition of e-commerce and DaaS (delivery-as-a-service) provider Driven Deliveries Inc. DRVD.

The all-stock deal is valued at about CA$41.3 million.

The company's combined market capitalization amounts to $65 million. In addition, it is expected to generate revenues of $75 million in 2021.

Under the deal, Driven's shareholders agreed to gain one share of Stem's common stock for each share of the Los Angeles-based delivery company's common stock.

The merger resulted in the "first vertically-integrated cannabis company with an integrated Delivery as a Service (DaaS) platform."

Te Boca Raton, Florida-based cannabis and hemp company is changing its name to Driven By Stem. The company's common stock will trade under the Stem's current symbols.

Other expansion strategies the company intends to utilize in the year to come include the launching of Driven's delivery platform in Oregon and the introduction of Stem's Yerba Buena brand in California, to name a few.

"This acquisition is a game-changer for the industry, for our valued customers, and shareholders of Stem," stated CEO Adam Berk.

"Stem is now uniquely poised to meet growing demand in the evolving marketplace for top-quality cannabis with our exciting brands and omnichannel capability to create loyalty among consumers who can now choose whether to buy in-store, through curbside pick-up, or to have swift home delivery at any time," he added.

Courtesy image: Stem Dispensary