Stem Holdings (CSE: STEM) is evidently looking to dominate the Oregon cannabis market. The firm this morning announced the acquisition of Artifact Extracts, an operator within the state, and two additional dispensaries as the firm looks to grow its presence and capture a larger market share.
The acquisition of Artifact Extracts was a strategic one, with the concentrates market continuing to grow nationwide. The segment reportedly grew 40% last year, with Stem looking to capitalize on this trend, adding a number of premier concentrates produced by Artifact to the firms product lineup. The brand is expected to appear at all of Stem’s dispensaries in the state in the near term.
The acquisitions increase the firms footprint along the coast to a total of six locations, with the new dispensaries located in Salem and Eugene. The acquisition is also to bring delivery services to Salem, as the firm looks to expand its Budee delivery platform within Oregon.
“As a result of this strategic acquisition, we will benefit from the expertise and broad capabilities that the Artifact team will provide to our existing extraction team that has specialized in tinctures and edibles, as well as in retail operations,” commented Stem Holdings CEO Adam Berk.
The acquisition reportedly closed on September 17, with the purchase consisting of an all-stock transaction. A total of 8.2 million shares of the company were issued, reflecting a purchase price of US$2.9 million.
Stem Holdings last traded at $0.375 on the CSE.
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