EXCLUSIVE: Driven By Stem To Enter Colorado Cannabis Market Via Acquisition Of Colorado Harvest Company

Stem Holdings, Inc. d/b/a Driven by Stem STMH STEM, a multi-state, vertically integrated cultivation and technology omnichannel cannabis company, has entered into a letter of intent to acquire High Country Supply, LLC d/b/a Colorado Harvest Company.

CHC is one of Denver’s oldest and most respected vertically integrated operators. The company holds two delivery permits, three retail dispensaries and two cultivation facilities. In calendar year 2021, CHC is expected to generate more than $13 million in revenues, with a projected gross margin of more than $5 million upon completing over 180,000 retail transactions.

“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. “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 exciting lineup of proprietary in-house strains, and an extensive selection of quality concentrates and edibles.”