Driven By Stem Expands E-Commerce and Delivery Footprint in California with New Distribution Hub License
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New distribution center serves four key counties in Northern California: Fresno, Merced, Stanislaus and Tulare
Reduces annualized operating expenses and gross revenue taxes
BOCA RATON, Fla., September 27, 2021 (GLOBE NEWSWIRE) – Stem Holdings, Inc. d / b / a Driven by Stem (OTCQX: STMH) (CSE: STEM) (the “Society” Where “Rod“), the premier multi-state, vertically integrated Farm-to-Home ™ (F2H) omnichannel cannabis cultivation and technology company with a proprietary Delivery-as-a-Service (DaaS) marketplace platform, announced today that it has received a storefront license to open a distribution center in Mendota, located in Fresno County, enabling it to provide better service to consumers with its Budee ™ e-commerce platform in four key counties in northern California, home to 2.3 million people *.
This expansion is expected to drive sales revenue with greater efficiency, as the Company anticipates savings of up to $ 1 million in operating expenses, including, but not limited to, taxes on gross revenue over the next eighteen months. The Mendota facility will have a fixed tax rate 3% lower than the Company’s Oakland facility, which represents approximately 25% of the total savings from this facility.
In October 2021, the Company expects the Mendota hub to become operational with a new 2,000 square foot facility, which will be dedicated to delivering service in 60 minutes or less. The city of Fresno plans to license up to 21 dispensaries **, the first since legalization, by the end of this year. Budee maintains its unique position as a legal delivery service already reaching 92% of California’s population and is ready to serve the Fresno market.
“Fresno’s new distribution center for off-storefront retail sales is the first of several initiatives planned to increase revenue and reduce selling and administrative costs while improving service and variety for our valued Budee customers.” , said Adam Berk, CEO of Stem. “With cannabis sales on the rise in the region, our high-quality product assortment includes top-selling cannabis brands in all product segments available through Budee’s convenient delivery service and is a driver of share gains. Steps. ”
Mr. Berk continued, “In addition to the newly added distribution center, our three existing distribution centers, as well as a medical cannabis dispensary, provide an extensive delivery service to the large population throughout California. An additional benefit of our Budee operating model includes the unique ability to market our well-known product brands in contiguous states with our leading cannabis brand partners directly to consumers, removing unnecessary costs. Overall, the company is well positioned as a leader in California cannabis operations to create shareholder value. We remain focused on the operational improvements needed to become the leading direct-to-consumer market share player across California, and we will continue to drive our expansion into the western United States.
** “Fresno Finally Approves Its Weed Dispensary Licenses” Fresno Bee, 9/9/21.
About Stem Holdings, Inc.
Stem Holdings is a leading omnichannel and vertically integrated cannabis branded products and technology company with cultivation, processing, extraction, retail, distribution and delivery as a service (DaaS) operations at cutting edge technology across the United States. . Stem’s award-winning family of brands include TJ’s Gardens ™, TravisxJames ™ and Yerba Buena ™ flower and extracts; Cannavore ™ Edible Confectionery; Doseology ™, a consumer CBD brand launched at the end of 2021; as well as the DaaS Budee ™ and Ganjarunner ™ brands through the acquisition of Driven Deliveries. Budee ™ and Ganjarunner ™ e-commerce platforms provide direct-to-consumer, proprietary logistics and omnichannel UX (user experience) / CX (customer experience).
Caution regarding forward-looking information
This press release contains statements that constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Stem’s management with respect to future business activities. Forward-looking information is often identified by the words “could”, “would”, “could”, “should”, “should”, “intention”, “plan”, “anticipate”, “believe”, “estimate” , “Expect” or similar expressions and includes information regarding: (i) expectations regarding the accretive nature of the Fresno facility; (ii) the expansion of the Company’s market following the development of the Fresno facility and the ability to expand operations; and (iii) the launch of delivery services in Stem’s current and future markets. Investors are cautioned that forward-looking information is not based on historical facts but rather reflects the management of Stem’s expectations, estimates or projections regarding future results or events based on management’s opinions, assumptions and estimates believed to be reasonable. on the date the declarations are made. . Although Stem believes that the expectations reflected in this forward-looking information are reasonable, such information involves risks and uncertainties, and such information should not be relied upon because unknown or unforeseeable factors could have material adverse effects on the financial statements. results, performance or achievements of the Company. Key factors that could cause actual results to differ materially from those projected in the forward-looking information include: changes in economic, business and general policy conditions, including changes in financial markets; the Company’s ability to raise debt and equity in the amounts and at the costs it provides; adverse changes in public perception of cannabis; construction delays; price decreases in effect for cannabis and cannabis products in the markets in which the Company operates; adverse changes in applicable laws; adverse changes in the application or enforcement of applicable laws, including those relating to taxation; the inability to locate and acquire suitable companies, properties and assets necessary for the execution of the Company’s business plans; Political risk; and the increased costs of complying with extensive government regulations. This forward-looking information may be affected by risks and uncertainties relating to Stem’s activities and market conditions.
If one or more of these risks or uncertainties materialize, or if the assumptions underlying the forward-looking information turn out to be incorrect, actual results could differ materially from those described herein as intended, planned, anticipated, believed, estimated. or expected. Although Stem has attempted to identify risks, uncertainties and important factors that could cause actual results to differ materially, there may be others that could cause results not to be as anticipated, estimated or planned. Stem assumes no obligation to update this forward-looking information, except as required by applicable law.
No securities regulatory authority has commented in any way on the merits of the proposed transactions described in this press release, nor has it approved or disapproved of the contents of this press release.
Stem titlesInvestor Relations Contact: KCSA Strategic CommunicationsValter Pinto, Managing Director1 [email protected]
Media contact: Mauria Betts Branding and Public Relations Director 971.266.1908[email protected]
Source: Stem Holdings, Inc., dba Managed by Stem