— Driven Deliveries, Inc. (the “Company” or “Driven”) (OTCQB: DRVD), one of California’s fastest-growing e-commerce cannabis retailers and direct-to-consumer logistics companies, today announced it has secured preliminary approval for a new e-commerce delivery hub in the Fresno County region. Driven has also submitted its application for this new cannabis non-storefront retail license to the State of California which is expected to be approved in the near-term. Plans for Driven’s acquisition by Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) later this month are continuing on schedule, creating Driven By Stem trading under Stem’s current symbols.
This new strategically-located hub will enable Driven to serve central California with greater efficiency and speed, and will be led by key experienced employees transferring to this location to ensure a smooth and flawless launch. This is expected to create 50 new jobs in the local area and afford significant cost savings in both general and administrative costs, as well as local taxes, with savings of $1.2 million annually vs. servicing this market from a remote hub.
Projected Year One Cost Reductions of $1.2 MillionTweet this
“Securing a license in Central California is a key component in Driven’s focus on building market share with increasing operational efficiencies in new and current markets,” commented Salvador Villanueva, interim CEO of Driven, and founder of its Budee e-commerce brand acquired earlier this year. “Our focus on expanding our footprint in California with our Budee and Ganjarunner e-commerce stores as well as new markets will be the key to driving profitability in 2021,” he concluded.
“We are pleased that this first step in our plan to integrate Driven into Stem’s operations is nearing completion,” stated Adam Berk, CEO of Stem Holdings. “Sal and the team have made great strides over the last 60 days as part of our ‘On Your Mark’ initiative to prepare for a seamless assimilation of Driven that will quickly build value for our shareholders,” he remarked.
Driven currently has delivery hubs located in Oakland and Los Angeles, California, and will be expanding to the Oregon market in which Stem already operates by year-end.
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 markets where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their cannabis in a fast and convenient manner. Driven’s acquisition by Stem Holdings, Inc. (OTCQX: STMH CSE: STEM), announced on October 6th, is expected to close in December 2020 and will expand Driven’s footprint to new markets.
For more information, please visit www.DRVD.com and review Driven’s filings with the U.S. Securities and Exchange Commission.
About Stem Holdings, Inc.
Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) is a leading cannabis and hemp branded products company in the U.S. with proprietary capabilities in sustainable cultivation, processing, extraction, and R&D, as well as retail and distribution operations aligned with state-by-state regulations. Stem’s award-winning brands are the foundation of the Company’s expansion into current and new segments and markets, with exceptional and disruptive brands and products that benefit well-being. Stem’s expertise and scale will drive growth domestically and internationally, building value for shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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.
DRVD Investor Contact:
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
STMH Media Contact:
STEM HOLDINGS, INC.