DRVD - Stem Holdings to acquire Driven Deliveries
Stem Holdings (STMH) and Driven Deliveries (DRVD) entered into a definitive agreement and plan of reorganization, post which Stem has agreed to acquire all of the stock of Driven Deliveries creating 'Driven By Stem'.Acquisition expected to close in late 2020.Driven Deliveries shareholders will receive one Stem share for each Driven share held for an aggregate purchase price of ~C$41.3M; Driven By Stem will have combined market capitalization of ~$54M with 65M Stem shares and 75M Driven shares being outstanding as of October 5, 2020.Post the acquisition, Driven By Stem will be the first vertically-integrated cannabis company with a DaaS platform, which will meet the needs of all cannabis consumers in markets served.Acquisition is expected to be EPS accretive in CY21 with cost savings seen at $1.5M in first year; increased scale to drive sales growth, leveraging Driven Deliveries'' proprietary technology in new markets to drive market share.
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Stem Holdings to acquire Driven Deliveries