Cannabis Company Stem Holdings To Buy TJ's Gardens For $12.5M
Vertically integrated cannabis company Stem Holdings, Inc., (OTC: STMH) (CSE: STEM) said Thursday it has executed merger agreements to acquire Consolidated Ventures of Oregon, Inc. and OPCO Holdings, Inc., which operate as TJ’s Gardens.
The company said it will also purchase assets including the Travis X James cannabis brand, Cannavore edibles and Reefer Distribution.
Per the agreement, the purchase price of $12.5 million will be met by the release of 12.5 million shares of Stem’s common stock that are now held in escrow to the beneficial owners of TJ’s.
The transaction should close on or before the Dec. 31, according to Stem Holdings.
TJ’s Gardens is an award-winning cannabis brand known for its TJ’s Durban Poison strain, which was chosen by High Times Magazine as the “Best Tasting Bud” two years in a row.
Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.
“We are excited to welcome the TJ’s team to Stem as we continue to build our portfolio of brands and deploy our operational excellence growth strategy,” Stem CEO Adam Berk said in a statement.
“TJ’s has a deep heritage in the Pacific Northwest and boasts strong brand recognition with a broad portfolio of award-winning genetics, as well as premier cultivation, processing, distribution and retail assets. Stem has collaborated and partnered with TJ’s since 2017, and this acquisition now allows us to leverage our state-of-the-art operations to grow and extend the TJ’s brand and other assets.”
Travis Mackenzie, co-founder of TJ’s Gardens, said Thursday is a milestone for the company
"We believe strongly in the benefits of cannabis, and joining the Stem team is the next step in our evolution that will enable us to scale and grow our business," he said in a statement.
Stem Holding stock was trading down 1% at 89 cents at the time of publication Thursday.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.