Driven by Stem has entered into a letter of intent to acquire Colorado Harvest Company (“CHC”), a Denver-based vertically integrated operator with two delivery permits, three retail dispensaries, and two cultivation facilities.
“The Colorado cannabis market has been an area of strategic focus for Stem. It is the second-largest market in the nation, and continues to grow at double digits after a record year in 2020 when it grew by 25% to reach annual sales of US $2.2 billion,” stated Adam Berk, CEO of Stem. He continued: “We have long been looking for the right partners and assets to enter the Colorado market. CHC has long been recognized as a cannabis industry pioneer and a consumer favorite, known for its lineup of proprietary in-house strains, and a selection of quality concentrates and edibles.” Berk further stated, “CHC’s assets fit perfectly with Stem’s core competencies and infrastructure for cultivation, wholesale, dispensary and e-commerce retail, extraction, delivery, and edibles. CHC is not only vertically integrated with great retail locations, high-quality products, and cultivation capacity, but is also the first company to be awarded a delivery license in the state of Colorado which conforms with our proprietary Budee delivery platform.”
Tim Cullen, CEO of Colorado Harvest Company, stated, "This new relationship will provide our customers with a new array of products and services, as well as allow us to build on the success Stem has enjoyed in other states. Colorado Harvest Company was recognized by Governor Polis with the first recreational cannabis delivery license in the State of Colorado and last week was awarded the distribution license for delivery in Denver. These new licenses combined with the experience and know-how of Stem will bring the company to the next level."
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