Stem Holdings To See Driven Deliveries Shares Converted On February 4
The final steps of Stem Holdings (CSE: STEM) acquisition of Driven Deliveries (OTC: DRVD) are now taking place following the previous close of the transaction. The company this morning announced that all outstanding shares of Driven will be converted to Stem shares as of February 4, 2021.
Upon closing, the resulting company is expected to have a consolidated market capitalization of approximately US$112 million. The all-stock transition saw shares converted on a one-for-one basis, with the resulting issuer becoming a vertically integrated cannabis operator with both e-commerce and delivery-as-a-service.
Current revenue projections for the combined company are currently projected to be US$75 million for 2021 by the company, with an expected gross profit of US$30 million. The transaction is set to be immediately accretive to the company, with a number of expansion plans set for the year, including expansion to the Oregon market.
Shares will automatically be converted to shares of Stem by brokerage firms and the Depository Trust Company, with no further actions being required by Driven shareholders. The transfer of these shares is expected to mark the formal close, as Stem Holdings continues to transition to Driven By Stem.
Driven By Stem last traded at $0.84 on the CSE.
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