Florida-based cannabis multistate company Stem Holdings, known as Driven by Stem, signed a letter of intent to expand into the Colorado market by acquiring one of Denver’s oldest vertical operators.
The purchase price wasn’t disclosed.
Colorado Harvest Co., which is registered as a limited liability company under High Country Supply, has two cultivation facilities, three retail outlets and two delivery permits.
“We have long been looking for the right partners and assets to enter the Colorado market,” Driven by Stem CEO Adam Berk said in a news release, noting the $2 billion-plus market’s continued strong growth.
“(Colorado Harvest) has long been recognized as a cannabis industry pioneer and a consumer favorite, known for its exciting lineup of proprietary in-house strains, and an extensive selection of quality concentrates and edibles.”
Colorado Harvest CEO Tim Cullen said the agreement with Driven by Stem “will provide our customers with a new array of products and services, as well as allow us to build on the success Stem has enjoyed in other states.”
Harvest launched operations in 2009. Earlier this year, it won Colorado’s first adult-use cannabis delivery license.
Colorado Harvest is expected to generate more than $13 million in revenue this year and a gross profit margin of roughly $5 million, according to the release.
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Driven by Stem has five cultivation facilities in Oregon and one in Las Vegas as well as one under construction in California.
The company has three retail stores in Oregon under the TJ’s Gardens brand and one each in Oklahoma City (under Stem) and Massachusetts (Rebelle) as well as the Foothills Heath & Wellness Center in Sacramento, Calif.