Stem Holdings, Inc. Expands California E-Commerce and Delivery Footprint with New Distribution Hub License
September 27, 2021 at 08:00 am EDT
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Stem Holdings, Inc. announced that it has received a non-storefront license to open a distribution hub in Mendota, located in the county of Fresno, enabling it to provide better service to consumers with its Budee e-commerce platform in four key counties in Northern California, home to 2.3 million residents. This expansion is expected to drive topline sales with greater efficiency, as the Company anticipates savings of up to $1 million in operating expenses including, but not limited to, gross receipt taxes over the next eighteen months. The Mendota facility will have a fixed tax rate that is 3% lower than the Company’s Oakland facility, representing approximately 25% of the total savings afforded by this facility. In October 2021, the Company plans for the Mendota hub to become operational through a new 2,000 square foot facility, which will be dedicated to delivery service in 60 minutes or less. The city of Fresno is planning to license up to 21 retail dispensaries, the first since legalization, by the end of this year. Budee maintains its unique position as a legal delivery service already reaching 92% of California’s population and is poised to service the Fresno market.
Stem Holdings, Inc. is a vertically integrated cannabis branded products and technology company. It is engaged in the cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. The Company purchases, leases, operates, and invests in properties for use in the production, distribution and sales of cannabis and cannabis-infused products licensed in the states of Oregon, Nevada, and California. It has ownership interests in over 23 state issued cannabis licenses including nine licenses for cannabis cultivation, three licenses for cannabis processing, two licenses for cannabis wholesale distribution, three licenses for hemp production and cannabis dispensary licenses. Its wholly owned subsidiaries include Stem Holdings Oregon, Inc., Stem Holdings IP, Inc., Opco, LLC, Stem Agri, Inc., Stem Holdings Oregon Acquisitions 1, Corp., Stem Holdings Oregon Acquisitions 2, Corp., and Stem Holdings Oregon Acquisitions 3, Corp.