Stem Holdings announced a stock purchase agreement in which it will issue 11.8 million shares of preferred stock for US$10 million.
Stem Holdings (CSE:STEM,OTCQB:STMH) announced it has entered into a stock purchase agreement with Attollo Capital Holdings A, LLC in which Stem will issue 11.8 million shares of preferred stock at a purchase price of US$0.85 per share for gross proceeds of about US$10 million.
As quoted in the press release:
Closing of the Investment is expected to occur immediately following satisfaction of customary closing conditions.
The Investment will allow Stem to accelerate currently identified opportunities and provides additional capital to pursue opportunities to execute the Company’s growth strategy. Initial use of funds is expected to include:
- Expansion into a limited supply, Massachusetts cannabis market. Stem will establish retail stores across the state and sell its owned and partner award-winning brands.
- Increase Nevada production capacity and distribution, including expanding cultivation for Travis x James cannabis flower and pre-rolls, and expanding production for its edibles line through its licensing partnership with Gron.
- Launch production and national distribution of customized medically-directed CBD products under the Apex licensing partnership, beginning with Hi-Tec® and Everyday California® brands.