Stem Holdings and The Tinley Beverage Company Inc. announced the integration of Stem's technology into Tinley's website, enabling a fast home delivery solution for cannabis-infused beverages throughout the State of California. Led by Adam Berk, who was the founder and CEO of the first patented online food ordering company in the U.S., Osmio, which became GrubHub, Stem's licensed, proprietary home delivery network Budee™ reaches 92% of California's population for delivery within two hours or by a scheduled time. Stem achieves this through their extensive network of employed home delivery drivers and licensed regional non-storefront retail storage facilities.

The platform also offers robust white label e-commerce technology that enables customer ordering via third-party brands' web sites. This technology, now integrated into Tinley's own web site, enables consumers to select Tinley's beverages on www.drinktinley.com and execute an order for delivery by BudeeTM on their website in an apparent seamless customer experience. Stem's statewide home delivery platform will be populated with Tinley's flagship products, and Tinley's will offer the option of participation in the Stem platform to the growing number of approved third-party brands who have their beverages manufactured at Tinley's bottling facility in Long Beach, California.

Stem's white label e-commerce platform and home delivery network will constitute an additional value-added service available to approved third-party beverages manufactured at Tinley's facility, allowing them to expand their home delivery footprint as an additional way of accessing consumers statewide. Retail and home delivery options for cannabis-infused beverages are often constrained in California by space and other logistical limitations for beverage products at the retail and last-mile delivery levels. Stem's platform enables seamless delivery from wholesale distribution to consumers' homes for Tinley's and these approved third-party manufacturing brands.

The Companies plan to collaborate further to create a variety of beverage-specific online portals that enable outreach and engagement with canna-curious consumers, who can be averse to smoking, and may not frequent dispensaries. With less than 15% of California's adult population having consumed cannabis in the past year,the drink category offers the most natural avenue for this largely untapped consumer base, including beverage alcohol consumers, to transition into cannabis. These portals can employ targeted channel marketing and messaging, comparable to wine and spirit club sites, which the Companies believe are necessary for recruiting these new consumers.