Stem Holdings Inc. d/b/a Driven by Stem (OTCMKTS: STMH) has signed a letter of intent to purchase High Country Supply, LLC d/b/a Colorado Harvest Company. Colorado Harvest Company is the oldest and most reputable vertically integrated cannabis operator in Denver that has two cultivation facilities, two delivery permits, and three retail dispensaries.
Stem focusing on the Colorado Cannabis market
CEO of Stem Adam Berk said, “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. We have long been looking for the right partners and assets to enter the Colorado market.”
Berk added, “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.”
CHC to generate 13 million in revenue in 2021
For fiscal 2021, CHC will generate more than $13 million in revenues with an expected gross margin of $5.070 million after completing 180,000 transactions.
CHC CEO Tim Cullen commented, “Colorado Harvest Company, an industry leader and pioneer in Colorado, is excited to enter into an agreement with Driven By Stem. 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. Additionally, 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.”