BOCA RATON, Fla., June 09, 2020 (GLOBE NEWSWIRE) — Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) (the “Company” or “Stem”), a leading vertically-integrated cannabis and hemp branded products company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, today provided a business update, to include select financial results for the months of May and April 2020 and the Company’s 2020 four-point growth strategy.
Unaudited Results for May 2020Gross Revenue grew to $1,965,380Dispensary Revenue included 19,600 transactions for a total of 58,100 units sold at an average ticket price of $65.03Stem sold 30,400 units of flower and pre-roll; 831 units of tinctures and 26,900 units of other productUnaudited Results for April 2020Gross Revenue exceeded market growth in pounds/dollars growing to $1,873,247Dispensary Revenue included 17,300 transactions for a total of 52,000 units sold at an average ticket price of $65.88Stem sold 26,800 units of flower and pre-roll; 856 units of tinctures and 24,400 units of other productCOVID-19
In Oregon, California, Nevada, and Oklahoma, the Company’s dispensaries and cultivation facilities have been deemed “essential businesses” and remained open and operational. All facilities are supervised, compliant, and updated daily with the latest training and guidance from the CDC and State Authorities on how to protect employees, customers, and suppliers. In Oregon, the Powell and Willamette locations have been offering delivery and all other approved locations have been offering curbside pick-up. In Nevada, Stem’s cultivation facilities have been working with dispensaries from Las Vegas to Reno and the Company’s distributor has been able to service all orders without disruption.Seven Leaf Ventures Corp. (“7LV”)
On March 6th, Stem closed on its previously announced acquisition of 7LV, a medical dispensary in the greater Sacramento, California area, and less than 30 days later on April 1st the two companies were fully integrated and operational. Despite COVID-19, 7LV exceeded prior year sales for the month of April due to the Company’s implementation of new procurement and merchandising strategies. Stem expects 7LV to be approved for a recreational license in the third quarter of this year, which should provide a significant, accretive increase to sales revenue.Business Update
Stem is anchored by its award-winning, trusted brands that have helped position the Company as a leading cannabis and hemp company in the U.S. In order to continue on our growth trajectory and position the Company for long-term success, management implemented a four-point growth strategy in the first quarter of 2020. The cornerstones of this strategy are financial discipline, productivity, a customer-centric approach, and brand innovation and discipline. The four strategies are outlined in more detail below, to include the Company’s accomplishments to date for each strategy.To read the full business update visit: StemHoldings.com/june2020About Stem Holdings, Inc.
Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) is a leading cannabis and hemp branded products company in the U.S. with proprietary capabilities in sustainable cultivation, processing, extraction, and R&D, as well as retail and distribution operations aligned with state-by-state regulations. Stem’s award-winning brands are the foundation of the Company’s expansion into current and new segments and markets, with exceptional and disruptive brands and products that benefit well-being. Stem’s expertise and scale will drive growth domestically and internationally, building value for shareholders.CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis business update contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the management of Stem Holdings, Inc. (“Stem”) with respect to future business activities. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include, without limitation, information regarding: (i) Stem’s growth strategy and the anticipated results therefrom; (ii) Stem’s future opportunities, including with respect to facility and store launches; (iii) the receipt of a recreational license for the Sacramento dispensary and the timing thereof; (iv) the accretive value of the acquisition of the Sacramento dispensary on Stem’s existing portfolio of dispensaries; (v) Stem’s promotional and delivery strategy and the anticipated results therefrom; (vi) the expected launch of certain of Stem’s brands and the timing thereof; and (vii) the unaudited select results of Stem for April and May 2020.Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the management of Stem’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Stem believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; adverse changes as a result of Covid-19; adverse changes in the application or enforcement of current laws, including those related to taxation; political risk; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Stem and market conditions.Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Stem has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Stem does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.The unaudited select results set forth herein are subject to customary financial statement procedures by Stem. Actual results could be affected by subsequent events or determinations. While Stem believes there is a reasonable basis for these select financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. For further information, please contact:Media Contact:
Mauria Betts
STEM HOLDINGS, INC.
[email protected]
Investor Relations:
John Mills
ICR, LLC
(646) 277-1254
[email protected]Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/b5f03131-cd12-4bcf-98ba-0c1048ada031https://www.globenewswire.com/NewsRoom/AttachmentNg/ded3884f-2a54-4d48-968f-b313a4d11972
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