Driven by Stem acquires Oregon marijuana business for $2.9 million

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Marijuana multistate operator Driven by Stem acquired Oregon cannabis extraction company Artifact Extracts in a $2.925 million deal that includes two retail stores.

The all-stock translation closed Sept. 17 with Oregon regulatory approvals granted, Stem said in a Monday news release.

Driven by Stem is the operating name of Florida-based Stem Holdings.

Stem cited growing sales of cannabis concentrates for its interest in doing the deal and said it plans to integrate Artifact’s concentrates lines into its existing brands.

The acquired stores are located in Salem and Eugene, which will both be rebranded to Stem’s TJ’s Gardens brand.

Stem plans to “immediately” launch its Budee delivery platform in Salem, “with service expansion to Eugene in October.”

The Florida-based company will also supply biomass to Artifact from its Oregon cultivation operations and gain new distribution outlets for Stem cannabis products.

CEO Adam Berk said in a statement that Stem “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.”

Stem, which closed a key acquisition of California-based Driven Deliveries in late 2020, said it now fully owns six dispensaries on the West Coast of the United States.

The company’s shares trade as STEM on the Canadian Securities Exchange and STMH on the over-the-counter markets.