![]() ![]() The holder of the shares of Preferred Stock shall be entitled to cast that number of votes calculated as if the shares of Preferred Stock had been converted into Common Shares based on the Conversion Rate then in effect. On the fifth anniversary of the Closing Date, each share of Preferred Stock shall be automatically converted into Common Shares at the Conversion Rate, without further action on the part of the Company or the Purchaser.Īt any time after the first anniversary of the Closing Date, the Company shall have the right to redeem any and all shares of Preferred Stock for an amount equal to the Original Issue Price per share of Preferred Stock, plus any Accruing Dividends accrued but unpaid thereon. The Preferred Stock shall accrue dividends at an annual rate of 6% (the “ Accruing Dividends”) and shall be payable in kind through the issuance of additional shares of Preferred Stock at the Original Issue Price.Įach share of Preferred Stock (including shares issued on account of Accruing Dividends) is convertible, at any time and at the option of the Purchaser, into one share of common stock of the Company (a “ Common Share”), subject to certain customary adjustments (the “ Conversion Rate”), prior to the fifth anniversary of the Closing Date (as defined herein). We believe Stem has a very bright future for years to come.” Adam Berk is positioned to be one of the market leaders. The opportunities ahead to effect several industries are large. “The landscape of the Cannabis Industry is in its infancy. ![]() “Stem is a unique and diversified company within the cannabis and CBD hemp space, and we are excited to make this equity investment to support the Company’s growth and expansion,” said Stuart Sugarman, Chief Executive Officer of Attollo Capital. ![]() ![]() We are committed to building shareholder value by leveraging our expertise and scale to drive growth domestically and internationally.” “Stem is in a position to deliver on our mission of creating world-class consumer products that promote well-being as we build and expand our portfolio of premium cannabis brands across our THC and CBD platforms. “We are pleased to enter into this agreement with Attollo Capital as their investment allows Stem to expand into Massachusetts, increase production capacity and distribution of our Travis x James brand in Nevada, launch Stem branded CBD stores and launch production and national distribution of medically-directed CBD products through our partnership with Apex Brands,” said Adam Berk, Chief Executive Officer of Stem. Launch production and national distribution of customized medically-directed CBD products under the Apex licensing partnership, beginning with Hi-Tec® and Everyday California® brands. Increase Nevada production capacity and distribution, including expanding cultivation for Travis x James cannabis flower and pre-rolls, and expanding production for its edibles line through its licensing partnership with Gron. Stem will establish retail stores across the state and sell its owned and partner award-winning brands. Initial use of funds is expected to include:Įxpansion into a limited supply, Massachusetts cannabis market. The Investment will allow Stem to accelerate currently identified opportunities and provides additional capital to pursue opportunities to execute the Company’s growth strategy. (OTCQB: STMH CSE: STEM) (the “ Company” or “ Stem”), a leading vertically-integrated cannabis and hemp company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, is pleased to announce that it has entered into a stock purchase agreement with Attollo Capital Holdings A, LLC (the “ Purchaser”) pursuant to which Stem will issue 11,764,706 shares of preferred stock of the Company (the “ Preferred Stock”) at a purchase price of US$0.85 per share of Preferred Stock (the “ Original Issue Price”) for gross proceeds to the Company of approximately US$10,000,000 (the “ Investment”).Ĭlosing of the Investment is expected to occur immediately following satisfaction of customary closing conditions. BOCA RATON, Fla.-( BUSINESS WIRE)-Stem Holdings, Inc. ![]()
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