Headwaters, LLC executed a term sheet to acquire Stem Holdings, Inc. in a reverse merger transaction.
January 30, 2023
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Headwaters, LLC executed a term sheet to acquire Stem Holdings, Inc. (OTCPK:STMH) in a reverse merger transaction on January 30, 2023. Pursuant to the Term Sheet, the Transaction will result in a reverse takeover of Stem Holdings and, subject to the satisfaction of all listing conditions, the listing of the combined entity on the Canadian Securities Exchange (the CSE) and the OTCQB Venture. Following the closing of the Transaction, it is expected that the former equity holders of Headwaters, LLC will own approximately 80% of the issued and outstanding shares of the Company.
The Transaction is subject to, among other matters, the execution of a mutually agreeable definitive agreement (the Definitive Agreement), completion of due diligence and subject to several conditions including, but not limited to, stockholder approval, delivery of acceptable financial statements, board of directors' approval and satisfaction of all regulatory and stock exchange approvals.
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.