BOCA RATON, Oct. 10, 2018 - PRESS RELEASE - Stem Holdings Inc. has announced the execution of definitive agreements for the acquisition of Yerba Buena, signed Oct. 8, 2018, an award-winning Oregon cannabis brand, pending Oregon Liquor Control Commission’s (OLCC) approval.
Under the terms of the agreement, Stem will acquire from Yerba Buena all the assets comprising Yerba Buena's business and assume the related liabilities. The consideration to be paid by Stem includes: (i) US$350,000 in cash payable on closing; (ii) a US$400,000 non-negotiable promissory note (iii) US$3.86 million in common share of Stem to be issued in two tranches, with US$1.58 million to be issued on closing at the then prevailing market price and US$2.28 million to be issued in June 2019 at the then prevailing market price. Closing of the transaction is expected to occur in January 2019 and is subject to regulatory approvals.
The 29-acre Yerba Buena property, located in Hillsboro, Ore., features state-of-the-art LED lighting and 9,000 square feet of indoor cultivation canopy. At full production, the cultivation facility can produce 4,000 pounds of clean cannabis annually. Yerba Buena has also developed an advanced, in-house genetics program that has generated a cannabis seed stock collection of a few hundred strains.
“Oregon is home to one of the most competitive cannabis markets in the country. Yerba Buena’s success in the Pacific Northwest demonstrates their ability to strongly execute large-scale cultivation operations while maintaining a consistent, high-quality product,” said Stem’s CEO Adam Berk.
Upon OLCC approval, the acquisition of Yerba Buena directly supports Stem’s plans for nationwide expansion. While Stem’s operational affiliates have developed partnerships with a number of widely recognized cannabis brands and licensees across the country, the acquisition of Yerba Buena solidifies Stem’s commitment to providing shareholder value through strategic mergers and acquisitions within the cannabis space.
“This transaction with Stem is an opportunity for Yerba Buena’s cannabis to reach more consumers in Oregon while promoting our platform of sustainable and progressive labor practices on a broader scale,” said Preston Greene, general manager of Yerba Buena.
“Stem shares our mission, as we look forward to setting the industry standard for best business practices and sustainable cannabis products achieving the ultimate goal of creating a multi-national footprint,” said Laura Day, director of operations.
Yerba Buena is widely recognized as a cannabis industry leader in stewardship and cultivation. Led by its management team of respected industry experts and composed of a first-in-class staff, Yerba Buena is one of the only cannabis farms in the country to hold both Clean Green and Certified Kind responsible agriculture credentials. Yerba Buena delivers naturally-grown products that have garnered numerous industry awards including, the Best Indoor Grow by the Dope Industry Awards, Best Cannabis Farm in Portland two years running, Best Sativa at the Oregon Dope Cup, and Best CBD strain at the Cultivation Classic.
Yerba Buena has also been honored for their exemplary workplace practices. Its cultivation facility was the first cannabis company to ever receive the 100 Best Green Companies award by Oregon Business Magazine, winning in both 2017 and 2018, placing 9th and then 6th respectively across all industries. Yerba Buena is committed to building a diverse workforce as women make up half of the business’s employee base, as well as people of diversity comprise a third of the staff.
“As we continue to expand into other states and markets, partnering with experienced leaders holding similar values as Stem is key to our success,” said Berk. “Together, we will continue to build one of the country’s most prosperous and sustainable cannabis cultivation brands.”
(CBS Local) — A bill to decriminalize marijuana in Pennsylvania cleared a big hurdle Tuesday.
The Pennsylvania House Judiciary Committee voted in favor of a bill that would downgrade penalties for possession of under 30 grams of marijuana from a third-degree misdemeanor to a summary offense that would allow up to a $300 fine and no jail time.
The bill will need to be approved in both the House and the Senate, before Gov. Tom Wolf will be able to sign it into law. Wolf has previously voiced his support for decriminalizing marijuana possession.
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Since 2015, Los Angeles restaurants and bars began adding cannabidiol, or CBD, to cocktail menus. For an extra fee or elevated price, bars offer the non-psychoactive cannabis extract as a supplement to any drink. This trend expanded greatly after Jan. 1, 2018, when California legalized the recreational use of cannabis. But adding CBD to any cocktail at a public establishment is now illegal, thanks to Governor Jerry Brown signing Assembly Bill 2914 in late September.
AB 2914’s official stance prohibits bars and liquor stores from selling alcohol drinks with cannabis.
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Law enforcement agencies from across the state are pushing to stop the practice of "wandering weed."
The League of California Cities, the California Police Chiefs Association and United Food and the Commercial Workers Western States Council, have urged the Bureau of Cannabis Control to amend proposed regulations that allow marijuana to be delivered anywhere in California.
The proposed regulations by the Bureau of Cannabis Control would permit delivery of recreational cannabis from jurisdictions that have banned such sales. Officials have argued local control played an integral role in the passage of Proposition 64.
Currently, licensed dispensaries can deliver anywhere within the state.
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Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More
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