Stem Holdings Merges With Driven Deliveries To Become Driven By Stem

Stem Holdings Inc. STMH STEM confirmed Tuesday the acquisition of e-commerce and DaaS (delivery-as-a-service) provider Driven Deliveries Inc. DRVD.

The all-stock transaction is scheduled to close by the year and.

Shareholders of the Los-Angeles based delivery company would gain one share of Stem's common stock for each share of Driven's common stock at an aggregate purchase price of roughly CA$41.3 million.

According to Stem, the merger would result in the "first vertically-integrated cannabis company with an integrated Delivery as a Service (DaaS) platform," with a combined market capitalization of around the US$54 million.

In addition, the Boca Raton, Florida-based cannabis and hemp company, agreed to change its name to Driven By Stem.

The new entity would maintain its headquarters in Boca Raton, Florida.

Driven By Stem is expected to trade under Stem's current symbols.

Meantime, the two companies previously teamed up to expand Stem's e-commerce offering and product distribution within California.

Driven By Stem's Leadership Team

Once the deal is closed, Stem CEO Adam Berk — who is also a member of Driven Deliveries' Board of Directors — would serve as Driven By Stem's CEO and Chairman.

Steve Hubbard, Stem's CFO, agreed to helm the finance department of the newly formed entity.

The current Executive Vice President and COO of Stem, Ellen Deutsch, opted to serve as EVP/Chief Operating Officer.

Driven Deliveries' President Sal Villanueva will retain his position within the combined company. 

Brian Hayek, a co-founder, and current CFO at Driven Deliveries, will serve as Driven By Stem's Chief Compliance Officer and Special Projects.

Moreover, Christian Schenk opted to resign from his role as Driven Deliveries' Chairman and CEO to pursue other interests.

"Merging with Stem completes our transition from an online cannabis technology company and delivery service to a vertically-integrated cannabis operator, and fast-tracks our expansion strategy into new states," Hayek stated.

Courtesy image, Stem Dispensary