acquiitions Archives - Green Market Report

StaffOctober 26, 2021


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.”

Debra BorchardtJune 12, 2018


Aurora Cannabis Inc. (ACBFF) has signed a binding term sheet to acquire all the shares of private company Anandia Laboratories Inc. in an all-stock transaction valued at C$115 million.

Anandia Labs is led by cannabis expert Jonathan Page, Ph.D., the company’s CEO and Co-founder. Dr. Page was the first scientist to sequence the cannabis genome and provide deep insights into the biosynthesis of cannabinoids and the interplay between cannabinoids and terpenes.

Anandia’s intellectual property includes the exclusive rights to a number of key genes in the cannabinoid pathway, as well as patents pending for genetic markers. According to a company statement, Anandia’s expert staff, proprietary assets, and know-how will provide Aurora with a very significant advantage in developing new cannabis cultivars. The statement said, “For instance, genome-based variety development and technological fortification can tailor metabolite (cannabinoid and terpene) profiles, improve disease resistance, enhance crop yield and optimize flowering time, and can be employed to develop specialized cultivars for oil production.”

Management Comments

“This is a transformative acquisition that expands our science capabilities in the upstream segment of the seed-to-sale cannabis value chain, significantly boosting plant-based innovations in cultivation, enabling accelerated product development, and, ultimately, enhancing our margin profile going forward,” said Terry Booth , CEO of Aurora. “Anandia has a fantastic, complementary corporate culture and some of the best and brightest minds in the cannabis industry, including Dr. Jonathan Page , the first scientist to sequence the cannabis genome. By adding Dr. Page and the Anandia team to the existing Aurora and CanniMed research infrastructure, we are assembling a unique, world-class research group to capitalize on the many exciting opportunities the cannabis plant offers society.”

Dr. Jonathan Page, Anandia’s co-founder, and CEO added, “Anandia is already on its way to developing a world-leading library of cannabis genetics coupled with in-depth genomic analysis. We expect our breeding efforts to be accelerated through access to Aurora’s financial resources and scientific expertise, as well as through the addition of Aurora’s multiple cultivation sites. Anandia and Aurora are strong believers in research and science-based solutions. Joining forces with Aurora allows us to continue to provide best-in-class testing services to our customers, while rapidly advancing cannabis science for the benefit of patients, consumers and growers.”

Testing To Stay Separate

Anandia’s cannabis testing services will remain operationally independent of Aurora. Anandia said that it will continue to service its customers with regards to testing and that it would maintain data confidentiality. Anandia also said that it will continue to build capacity to take on the increased sample volume arising from legalization, including expansion to its new testing facility in Vancouver. Anandia was named the Top Testing Lab at the 2017 Lift Canadian Cannabis Awards.

Aurora Acquisitions

Aurora has been on an acquisition binge this year. It has signed deals with CanniMed Therapeutics, MedReleaf, BC Northern Lights and has ownership stakes and numerous companies like The Green Organic Dutchman and Hempco.

Aurora Cannabis stock on the Toronto Exchange was lately trading at C$8.92, down from its 52-week high of C$15.20, but above the year’s low of C$2.03. While the acquisitions are believed to be important as the company builds market share, some traders have voiced concerns that the deals have pushed the company’s break-even point far into the next year. This would explain the pressure placed on the stock price.

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.