STMH - Stem Holdings divests its delivery and e-commerce cannabis business

Stem Holdings (OTCQX:STMH) announces divestment of its wholly owned subsidiary Driven Deliveries (OTCQB:DRVD) to its founders in return for Stem shares. That translates a return of 12.5M shares of Stem to treasury, reduction of $7.1M in total liabilities and increase in working capital by $4.1M. Monthly expenses related to Driven Deliveries will reduce total expenses by $9.6M annually. The company notes this divestiture will immediately improve the its balance sheet and cost structure, where Driven Deliveries currently accounts for 32.3% of the total liabilities; in addition of turning this move to achieve positive Adjusted EBITDA in 2022. Also, Stem announces the appointment of Steve Hubbard, co-founder and current CFO, as interim CEO, replacing Adam Berk who has resigned from the role.  Explaining the reason for Driven Deliveries' divestment, Interim CEO Steve Hubbard says "First, the delivery and e-commerce cannabis business in California has become increasingly more challenging due to oversupply in the market, which has reduced price per pound approximately

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Stem Holdings divests its delivery and e-commerce cannabis business