Stem Holdings (CSE:STEM,OTCQX:STMH) announced that it is expanding its footprint into Massachusetts through a joint venture with Community Growth Partners, a cannabis company with licensed operations in the state.
As quoted in the press release:
The Massachusetts Cannabis Control Commission recently awarded CGP three provisional cannabis licenses for cultivation, manufacturing and retail – making CGP one of the Commonwealth’s first women- and minority-founded and owned businesses to become approved as a vertically-integrated cannabis operation. A new state-of-the-art indoor cultivation and manufacturing facility will be constructed in Northampton for completion by Fall 2020 including extraction and distribution capability, and dispensary operations will precede this by Spring 2020 to begin serving the market with partner cannabis brands.
Stem will acquire 49% of CGP’s common stock, and will then provide a revolving line of credit for future expansion into Massachusetts. Stem, an experienced multi-state operator, will provide CGP with administrative, cultivation, and manufacturing support services. Stem will also license and market CGP’s Rebelle™-brand products in its other licensed markets including California, Oregon, Oklahoma and Nevada. The agreements are subject to approval of the Massachusetts Cannabis Control Commission and other local state authorities.