Stem Holdings is expanding its footprint into Massachusetts through a joint venture with Community Growth Partners, a vertically-integrated cannabis company with provisional licensed operations in Massachusetts.
"The Massachusetts Cannabis Control Commission recently awarded CGP three provisional cannabis licenses for cultivation, manufacturing and retail – making CGP one of the Commonwealth’s first women- and minority-founded and owned businesses to become approved as a vertically-integrated cannabis operation," the team with the company explains. "A new state-of-the-art indoor cultivation and manufacturing facility will be constructed in Northampton for completion by Fall 2020 including extraction and distribution capability, and dispensary operations will precede this by Spring 2020 to begin serving the market with partner cannabis brands."
According to them, Stem will acquire 49% of CGP’s common stock, and will then provide a revolving line of credit for future expansion into Massachusetts. "Stem will provide CGP with administrative, cultivation, and manufacturing support services. Stem will also license and market CGP’s Rebelle-brand products in its other licensed markets including California, Oregon, Oklahoma and Nevada," they further explain. "The agreements are subject to approval of the Massachusetts Cannabis Control Commission and other local state authorities."
“We applaud the Commonwealth of Massachusetts for awarding these important licenses to Community Growth Partners, which reflects the vision of state regulators seeking to promote social justice and a free market by recognizing that CGP exemplifies the best practices of both,” stated Adam Berk, Chief Executive Officer of Stem. “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. We look forward to Charlotte joining Stem as an advisor and to bringing Rebelle into our family of brands.”
Charlotte Hanna commented, “Massachusetts sits at the center of the country’s most concentrated cannabis market with more than 40 million people living in, and within a three-hour drive of the state. This $5 billion market is even more enticing considering the extremely limited number of licenses available in the region. Adam is a dynamic leader with impressive entrepreneurial experience and a strong national team. Together we will expand our footprint into new regional markets,” she concluded.
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