Florida-based marijuana grower and retailer Stem Holdings signed a deal to acquire California-headquartered hashish delivery company Driven Deliveries, creating what Stem calls “the first vertically integrated cannabis company with an integrated Delivery as a Service platform.”

The all-stock transaction might be price roughly 41.3 million Canadian {dollars} ($31.1 million), in accordance to a news release issued Tuesday.

Under phrases of the deal, shareholders of Driven Deliveries, primarily based in Los Angeles, will obtain one share of Stem for every share of Driven.

The mixed company might be known as Driven by Stem and function out of Stem’s present workplaces in Boca Raton.

Stem stated it expects the acquisition to be instantly accretive to its earnings and anticipates synergies in gross sales, operations and promoting, common and administrative bills.

“We will apply Driven Deliveries’ technology, footprint and distribution capability to all markets, and leverage our own licenses and retail dispensaries to service more consumers in every state in which we operate,” Stem CEO Adam Berk stated in the discharge.

Berk is the previous CEO of Osmio, which now operates as meals delivery service Grubhub.

He will proceed on as CEO of Driven by Stem. Current Driven Deliveries CEO Christian Schenk has resigned.

Driven by Stem initiatives revenues of $75 million in 2021 with a gross revenue of $27 million.

Stem Holdings trades on the Canadian Securities Exchange as STEM and the U.S. over-the-counter markets as STMH.

Driven by Stem will commerce underneath Stem’s present listings.



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