LOS ANGELES, Oct. 22, 2020 /PRNewswire/ -- Driven Deliveries, Inc. ("Driven"), (OTCQB: DRVD), a cannabis e-commerce and DaaS (delivery-as-a-service) provider with proprietary logistics and omnichannel UX/CX technology, today announced that it has received majority approval of its acquisition by Stem Holdings, Inc. ("Stem" or "the Company") (OTCQX: STMH CSE: STEM), a leading vertically-integrated cannabis and hemp branded products company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations throughout the United States, and filed a 14-C Information statement with the U.S. Securities and Exchange Commission ("SEC").
Driven entered into a definitive agreement and plan of reorganization dated October 5, 2020 (the "Definitive Agreement") pursuant to which Stem agreed to acquire all of the stock of Driven Deliveries. The Board of Directors of each of Stem and Driven Deliveries have unanimously approved the all-stock acquisition and it is expected to close in Q4 2020.
"We are delighted to become part of the Stem family of dynamic products and services," stated Brian Hayek, co-founder and CFO of Driven Deliveries. "With unanimous board support and majority shareholder approval of this transaction, we have completed the last mandatory SEC requirement to close."
Following completion of the Acquisition, all Driven Shareholders will receive one share of Stem Holding's common stock for each share held. Stem Holdings will become Driven By Stem, which the company believes will be the first vertically-integrated cannabis company with a DaaS platform, that will meet the needs of all cannabis consumers in markets served. The Company will continue to trade under Stem's current symbols. Further details of the Agreement are included in the 14-C filing. The complete filing may be seen at the following link: https://sec.report/Document/0001213900-20-032319/.
Total CY20 gross revenue of Stem and Driven Deliveries, as a combined entity, is projected to be USD$49 million with gross profit of USD$18 million. The Company is expected to have a combined market capitalization of approximately USD$60 million, based on the closing market price of the Stem Shares and the Driven Shares on the OTCQX and the OTCQB, respectively, on October 22, 2020.
Driven Deliveries, Inc., is one of the first publicly traded cannabis delivery services operating within the United States. Founded by experienced technology and cannabis executives, the company provides e-commerce solutions, online sales, and on-demand cannabis delivery, in select cities where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their marijuana in a fast and convenient manner. By 2020, legitimate cannabis revenue in the U.S. market is projected to hit $23 billion. By leveraging consumer trends, and offering a proprietary, turnkey delivery system to its customers, management believes it is uniquely positioned to best serve the needs of the emerging cannabis industry and capture notable market share within the sector. For more information, please visit www.DRVD.com and review Driven's filings with the U.S. Securities and Exchange Commission.
This press release contains certain forward-looking statements. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that we will achieve these plans, objectives, expectations or intentions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
View original content to download multimedia:http://www.prnewswire.com/news-releases/driven-deliveries-inc-announces-shareholder-approval-of-announced-acquisition-by-stem-holdings-inc-301158376.html
SOURCE Driven Deliveries, Inc.