Stem Holdings, Inc. d/b/a Driven by Stem (OTCQX: STMH) (CSE: STEM) is buying High Country Supply also known as Colorado Harvest Company, one of Denver’s oldest and most respected vertically-integrated operators with two delivery permits, three retail dispensaries, and two cultivation facilities. The purchase price of the acquisition was not disclosed, however, CHC is expected to generate over $13 million in revenues in 2021, with a projected gross margin of $5,070,000, 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. 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 exciting line up of proprietary in-house strains, and an extensive 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.”
In addition to the brick-and-mortar locations found in Denver and Aurora, CHC also offers carry out windows to promote social distancing as well as delivery to customers in certain areas. Colorado Harvest Company has long been recognized as a local favorite for its Exotic lineup of in-house strains as well as collaborations with many well-recognized brands in the space.
Tim Cullen, CEO of Colorado Harvest Company, stated, “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. 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. This is a tremendous opportunity for Colorado Harvest Company to join forces with Stem, anticipating a very bright future together.”