Month: May 2021

Olympic Esports Involvement can Serve Investors Well

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image credit: Charis Tsevis (Flickr)


How Investors can “Bring Home the Gold” from the Mainstreaming of Esports

 

When businesses or new industry sectors become mainstream, it often feels as though it occurred overnight. Esports may experience this tipping point as we move toward the rescheduled Tokyo 2020 Olympics this summer. Although esports fans are well aware of the explosive growth of “their” sport, millions more will be introduced to it for the first time. The increased attention paid to the games and companies that provide platforms, games, venues, and even betting should add to related companies’ attractiveness for investors.

 

Background

Leading up to the Tokyo Olympics, the International Olympic Committee (IOC) partnered with esports federations to provide world-class-athlete level esports competition. These events will consist of sports competitions traditionally found in the Olympics – it was specifically spelled out “no killing.” Together they came up with five Olympic Virtual Series (OVS) games which are auto racing, baseball, cycling, rowing, and sailing. Each OVS game will coordinate with its related international federation; for example: “eBaseball Powerful Pro Baseball 2020, will operate under the World Baseball Softball Confederation. Other guiding federations include the International Cycling Union, World Rowing Federation, International Automobile Federation, and World Sailing.

 

Support from Established Institutions

The reasons for the Olympics embracing esports with an eye on much more involvement in the future is spelled out in their agenda, (pages 21, 22 Olympic Agenda). They wish to “Encourage the development of virtual sports and further engage with video gaming communities.” They also recognize the growth of the sport in the agenda, saying, “Throughout the impacts of COVID-19, the gaming industry has continued to grow, highlighted by a 30% growth in gamers, 75% growth in gaming usage, and the industry being worth an estimated USD 159 billion in 2020.” These are numbers that are not a surprise to Channelchek subscribers, but these are not numbers known far outside of certain circles. The strong embrace of the iconic Olympics this year and its commitment to the future should further add to the demand for all the professional games’ products and services. The Olympics continued support is shown in a number of places in the agenda, with the spirit of their intentions captured in this line,” The IOC aims to build on this [growth] by assisting IFs to develop virtual and simulated forms of their sport.”

Other support comes from the live streaming platform Twitch, which will become part of NBC’s Olympic coverage and content in a partnership announced earlier this month. Part of this programming will include the creation of several interactive features. For example, in the week prior to the opening ceremony, Twitch streamers and their audiences will keep a virtual torch running through their engagement.

The NBC Olympics channel on Twitch will host several content series throughout the games, including highlights, streamer competitions, and live interviews with Olympic athletes.

 

Where to Find Opportunities

Just as traditional sports business include those that own and run venues (stadiums, race tracks, etc.), various leagues, media, Athletic endorsements, and sponsorships, esports has a similar ecosystem. At its core, there are publishers (game makers), advertising sales, media rights, merchandise, and ticket sales.

The “Quick Search” search bar on Channelchek is a good way to begin to look for companies in this industry and are involved in the various layers of esports. Remember, smaller companies are, more likely to be pure plays.

 

 

By typing in a search term on Channelchek.com and clicking the magnifying glass icon, you can search for related small and microcap companies in this industry or any other.

 

 

Once you have a list of companies and tickers, click on the company name to uncover data, news stories, and in “Discover companies,” in-depth research from analysts at Noble Capital Markets.

 

Take-Away

Esports received a big boost from the 2020 conditions, which halted live spectator sports. Despite esports current magnitude, the potential to grow to a multiple of its current size is quickly being realized. The esports games that are being aired pre-Olympics and the collaboration with the various sports federations will go a long way toward bringing much more attention to esports. This attention will help mainstream the games. From this, investors can find opportunities now.

 

Suggested Reading:

Why Stem Cell Stocks in 2021 Make Sense

NFTs are Becoming More Popular with Sports Fans



Investing in Leisure Post Pandemic

Esports Entertainment Group C-Suite Interview (Video)

 

Sources:

https://esportsobserver.com/twitch-partners-nbc-olympics/

https://stillmedab.olympic.org/media/Document%20Library/OlympicOrg/IOC/What-We-Do/Olympic-agenda/Olympic-Agenda-2020-5-15-recommendations.pdf#_ga=2.109055877.1262524182.1617693851-616753925.1575537379

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Release – Boomer Holdings Announces 6 Month Transitional Period Results

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Boomer Holdings Announces 6 Month Transitional Period Results

 

LAS VEGAS, May 18, 2021 /PRNewswire/ — Boomer Holdings, Inc. (“Boomer” or the “Company”) (OTCQB: BOMH), is an innovative Consumer Products Company specializing in a large variety of premium quality wellness and everyday use products under the Boomer Naturals brand name. Boomer reported results for its six -month transition period ended January 31, 2021.

On January 29, 2021 the Company changed its fiscal year-end from July 31st to January 31st. As required, on May 17, 2021, Boomer Holdings, Inc.  filed a transition report on Form 10-KT with the Securities and Exchange Commission covering the transition period from August 1, 2021 to January 31, 2021.

Financial highlights for Boomer Holding Corp’s six-month transition period ended January 31st are as follows:

  • 6-month revenue of $45.1 million, a gain of over $30 million over the prior 12-month period of $11.4 million (ended 7/31/20)
  • Net income for the 6-month period was $7.3 million, a gain of over $20 million over the $15.6 million dollar loss from the prior 12-month period
  • Gross margins of 64% during the past six-month period
  • Stockholder deficit at 1/31/21 was reduced to $(4.7) million from the 7/31/20 deficit of $(12) million

Significant growth was achieved during the six-month transition period, which led to overall earnings per share to move from $(0.12) to $0.05.

“We are pleased to report the progress made in the Form 10-KT to our shareholders,” said Mike Quaid, CEO of Boomer Holdings.

“We were able to enjoy continued success in the Personal Protective Equipment (PPE) category while using that success to prepare for the next phase of Boomer Holdings growth.” Said Daniel Capri, President and Chairman of the Board, “as the country turns the corner on the pandemic and PPE demand slows, we believe Boomer is positioning itself to replace and eventually exceed that demand through our many new and exciting lines of products.”

Operational achievements of note:

  • Boomer established a strong retail presence in over 8,000 CVS stores
  • Boomer has prepared and is readying its new product lines to roll out in the first and second quarters of 2022 featuring:
    • Vietnamese Coffee
    • Unique nutritional powder formulations
    • Silver infused clothing
    • Silver infused bedding

Stated Mike Quaid, “Building an efficient and stable manufacturing and distribution from Vietnam is a goal that has thwarted many companies that have tried. I am pleased to announce that Boomer has completed this task and will now focus on bringing these unique and in-demand products to the American market. We look forward to further announcements about Boomer products and distribution in the coming weeks.”

About Boomer Naturals
Boomer Naturals is a wholly-owned subsidiary of Boomer Holdings Inc., a publicly-traded company (OTCQB: BOMH). Boomer Naturals is a full-service wellness company that provides products and services that enhance your well-being and increase your quality of life. Boomer Naturals’ products are available online at Boomerstore.com, BoomerNaturals.com, BoomerNaturalsWholesale.com, CVS.com. Boomer Naturals’ products are also available at the Boomer Naturals retail store, CVS retail locations, and resorts and golf shops across the country. For more information, please visit www.boomernaturals.com.

Forward-Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as required by securities laws. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation, economic, political, regulatory, capital markets and other external conditions and other factors beyond the Company’s control, risks related to public health crises such as the global pandemic associated with the coronavirus (COVID-19), and those set forth as “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”). There may be other factors not mentioned above or included in the Company’s SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement.

CONTACT: Mike Quaid, mike@boomernaturals.com

SOURCE Boomer Naturals, Inc

Boomer Holdings Announces 6 Month Transitional Period Results

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Boomer Holdings Announces 6 Month Transitional Period Results

 

LAS VEGAS, May 18, 2021 /PRNewswire/ — Boomer Holdings, Inc. (“Boomer” or the “Company”) (OTCQB: BOMH), is an innovative Consumer Products Company specializing in a large variety of premium quality wellness and everyday use products under the Boomer Naturals brand name. Boomer reported results for its six -month transition period ended January 31, 2021.

On January 29, 2021 the Company changed its fiscal year-end from July 31st to January 31st. As required, on May 17, 2021, Boomer Holdings, Inc.  filed a transition report on Form 10-KT with the Securities and Exchange Commission covering the transition period from August 1, 2021 to January 31, 2021.

Financial highlights for Boomer Holding Corp’s six-month transition period ended January 31st are as follows:

  • 6-month revenue of $45.1 million, a gain of over $30 million over the prior 12-month period of $11.4 million (ended 7/31/20)
  • Net income for the 6-month period was $7.3 million, a gain of over $20 million over the $15.6 million dollar loss from the prior 12-month period
  • Gross margins of 64% during the past six-month period
  • Stockholder deficit at 1/31/21 was reduced to $(4.7) million from the 7/31/20 deficit of $(12) million

Significant growth was achieved during the six-month transition period, which led to overall earnings per share to move from $(0.12) to $0.05.

“We are pleased to report the progress made in the Form 10-KT to our shareholders,” said Mike Quaid, CEO of Boomer Holdings.

“We were able to enjoy continued success in the Personal Protective Equipment (PPE) category while using that success to prepare for the next phase of Boomer Holdings growth.” Said Daniel Capri, President and Chairman of the Board, “as the country turns the corner on the pandemic and PPE demand slows, we believe Boomer is positioning itself to replace and eventually exceed that demand through our many new and exciting lines of products.”

Operational achievements of note:

  • Boomer established a strong retail presence in over 8,000 CVS stores
  • Boomer has prepared and is readying its new product lines to roll out in the first and second quarters of 2022 featuring:
    • Vietnamese Coffee
    • Unique nutritional powder formulations
    • Silver infused clothing
    • Silver infused bedding

Stated Mike Quaid, “Building an efficient and stable manufacturing and distribution from Vietnam is a goal that has thwarted many companies that have tried. I am pleased to announce that Boomer has completed this task and will now focus on bringing these unique and in-demand products to the American market. We look forward to further announcements about Boomer products and distribution in the coming weeks.”

About Boomer Naturals
Boomer Naturals is a wholly-owned subsidiary of Boomer Holdings Inc., a publicly-traded company (OTCQB: BOMH). Boomer Naturals is a full-service wellness company that provides products and services that enhance your well-being and increase your quality of life. Boomer Naturals’ products are available online at Boomerstore.com, BoomerNaturals.com, BoomerNaturalsWholesale.com, CVS.com. Boomer Naturals’ products are also available at the Boomer Naturals retail store, CVS retail locations, and resorts and golf shops across the country. For more information, please visit www.boomernaturals.com.

Forward-Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as required by securities laws. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation, economic, political, regulatory, capital markets and other external conditions and other factors beyond the Company’s control, risks related to public health crises such as the global pandemic associated with the coronavirus (COVID-19), and those set forth as “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”). There may be other factors not mentioned above or included in the Company’s SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement.

CONTACT: Mike Quaid, mike@boomernaturals.com

SOURCE Boomer Naturals, Inc

Helius Medical Technologies (HSDT)(HSM:CA) – First Quarter Results; Moving Forward with U.S. Commercialization

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Tuesday, May 18, 2021

Helius Medical Technologies (HSDT)(HSM:CA)
First Quarter Results; Moving Forward with U.S. Commercialization

Helius Medical Technologies is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNSTM). For more information, visit www.heliusmedical.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q21 Results. Helius reported first quarter 2021 revenue of $84,000, down from $207,000 in the same period last year. Net loss for the quarter was $3.4 million, or $1.65 per share, compared to a net loss of $4.8 million, or $5.38 per share in the first quarter last year. We had forecast revenue of $87,000 and a net loss of $2.8 million, or $1.22 per share.

    U.S.  Commercialization. Following FDA approval in March, Helius is developing a plan for U.S. commercialization of the PoNS Treatment. The Company is well on it way of obtaining state approvals, currently approved in 24 states. A team is being assembled to develop and implement a “go to market strategy.” Helius will initially focus on early adopters in the neurologist community and …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Esports Entertainment Group, Inc. (GMBL) – Odds On Favorite

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Tuesday, May 18, 2021

Esports Entertainment Group, Inc. (GMBL)
Odds On Favorite

Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Better-than-expected Q3 results. Total company revenues of $5.4 million was 10% better than our $4.9 million estimate, which benefited from one month of Lucky Dino, a $2.3 million revenue contribution in the quarter. Gross profit margins were surprisingly strong at 57% versus our 44% estimate, which accounted for gross profit to be 45% above our estimate. Adjusted EBITDA was a loss of $2.1 million, which was roughly $1 million better than our $3.1 million loss estimate.

    Favorable operating momentum.  The company reiterated its guidance for $18 million in fiscal 2021 revenue and $70 million for full fiscal year 2022. This implies $10 million in fiscal Q4 2021 revenue, in line with our estimates. Notably, the company anticipates that its new burn rate has decreased from $900,000 per month to $600,000 per month, better than our Q4 2021 expectation of $700,000 …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Helius Medical Technologies (HSDT)(HSM:CA) – First Quarter Results Moving Forward with U.S. Commercialization

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Tuesday, May 18, 2021

Helius Medical Technologies (HSDT)(HSM:CA)
First Quarter Results; Moving Forward with U.S. Commercialization

Helius Medical Technologies is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNSTM). For more information, visit www.heliusmedical.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q21 Results. Helius reported first quarter 2021 revenue of $84,000, down from $207,000 in the same period last year. Net loss for the quarter was $3.4 million, or $1.65 per share, compared to a net loss of $4.8 million, or $5.38 per share in the first quarter last year. We had forecast revenue of $87,000 and a net loss of $2.8 million, or $1.22 per share.

    U.S.  Commercialization. Following FDA approval in March, Helius is developing a plan for U.S. commercialization of the PoNS Treatment. The Company is well on it way of obtaining state approvals, currently approved in 24 states. A team is being assembled to develop and implement a “go to market strategy.” Helius will initially focus on early adopters in the neurologist community and …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Indonesia Energy Makes NYSE American Section 610(b) Public Announcement

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Indonesia Energy Makes NYSE American Section 610(b) Public Announcement

 

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / May 18, 2021 / Indonesia Energy Corporation Limited (NYSE American:INDO) (IEC), an oil and gas exploration and production company focused on Indonesia, today announced that, as disclosed in its Annual Report on Form 20-F for the year ended December 31, 2020 (the “Form 20-F”) filed today, May 17, with the Securities and Exchange Commission, IEC’s audited financial statements for the year ended December 31, 2020 included in the Form 20-F contained an audit opinion from its independent registered public accounting firm which included a going concern qualification paragraph.

This announcement is made pursuant to NYSE American Company Guide Section 610(b), which requires separate public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to IEC’s audited financial statements for the year ended December 31, 2020 or to the Form 20-F.

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2020 filed on May 17, 2021 with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:
Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

SOURCE: Indonesia Energy Corporation Limited

QuickChek – May 18, 2021

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PDS Biotechnology Appoints Immuno-Oncology Experts Dr. Olivera Finn and Dr. Mark Frohlich to Scientific Advisory Board

PDS Biotechnology announced the appointment of Dr. Olivera Finn and Dr. Mark Frohlich to its Scientific Advisory Board

Research, News & Market Data on PDS Biotechnology

Watch recent presentation from PDS Biotechnology



Onconova Therapeutics Reports Q1 Financial Results
Up 60% in Midday Trading

Onconova Therapeutics announced financial results for the three months ended March 31, 2021 and provided a business update

Research, News & Market Data on Onconova

Watch recent presentation from NobleCon17



Allegiant Drilling at Eastside Confirms Significant At-Surface Oxide Gold Mineralization

Allegiant Gold announced the results of 49 exploration RC drill holes, totalling 5,850 meters, drilled in the Castle Zone around the former producing Boss pit

Research, News & Market Data on Allegiant Gold

Watch recent presentation from Allegiant Gold



Comtech Telecommunications Corp. Awarded $1.0 Million Follow-on Contract

Comtech was awarded a follow-on order valued at more than $1.0 million for its Falcon 50Ka Solid-State Power Amplifiers

See yesterday’s research report on Comtech from Joe Gomes, Senior Research Analyst at Noble Capital Markets

Research, News & Market Data on Comtech

Watch recent presentation from NobleCon17



Stem Holdings Reports Record Gross Revenue of $12.4 Million for CY21 First Quarter Results

Driven by Stem reported its financial results for the first calendar quarter ended March 31, 2021

Research, News & Market Data on Driven by Stem

Watch recent presentation from Driven by Stem



Indonesia Energy Makes NYSE American Section 610(b) Public Announcement
Indonesia Energy to Host Investor Conference Call to Present Initial Results on its First New Well Drilled at Kruh Block

Research, News & Market Data on Indonesia Energy

Watch recent presentation from NobleCon17

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Stem Holdings dba Driven By Stem Reports Record Gross Revenue of $12.4 Million for CY21 First Quarter Results

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Stem Holdings d/b/a Driven By Stem Reports Record Gross Revenue of $12.4 Million for CY21 First Quarter Results

 

BOCA RATON, Fla., May 18, 2021 /PRNewswire/ — Stem Holdings, Inc., d/b/a Driven By Stem (“Stem” or the “Company”), a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States, today reported its financial results for the first calendar quarter ended March 31, 2021.

Highlights for the quarter ended March 31, 2021:

  • Gross revenue increased to a record $12.4 million from $2.7 million for the three months ended March 31, 2020.
  • Gross profit increase of 269% to $2.7 million as compared to $0.73 million for the comparable period in the previous year.
  • Retail gross revenue comps +49.5% vs. 2020, with 2,614 transactions in one day on 4-20, the annual celebration day for cannabis.
  • Budee™ DaaS revenues increased vs. three months ended March 31, 2020 in California and is poised to launch in Oregon in May, followed by Michigan in September.
  • Cultivation yields increased 7.8% vs. three months ended March 31, 2020, and our retail footprint for our brands increased by 32%.
  • Adjusted EBITDA of $1.7 million an increase from ($5.8 million) for the three months ended March 31, 2020 reflects ongoing operational improvements.
  • Subsequent to the quarter end, the Company closed on a C$10.3 million public offering, previously announced December 14, 2020, led by Canaccord Genuity.

Operational Updates

  • Budee™ delivery is poised to launch in Oregon in May 2021.
  • New retail dispensary to open in September 2021 in Michigan.
  • With retail opening in Michigan, Budee DaaS will launch for expanded state-wide market footprint by Labor Day, its third delivery state.
  • Launch of Yerba Buena™ brand cannabis flower in California, the first expansion market for the brand.

Management Commentary 
“Our record sales and the beginning of the successful integration of Driven Deliveries Inc. (“Driven”) has positioned us for greater growth as we expand the footprint of our retail, delivery, and branded product operations in high-growth markets,” stated Adam Berk, CEO of the Company. “Full integration and streamlined execution and expansion of Driven’s technology will continue over the next six months, to be completed by the end of 2021. We are leveraging our combined strength by simultaneously increasing market share of our own retail operations, as well as our branded products,” he continued. “Our plans for expansion in Michigan both at retail and with Budee delivery by Labor Day, as well as our ongoing efforts in New York, bode well for accretive growth throughout 2021. We are excited about our progress and driving synergies for continued growth in 2022.”

Mr. Berk continued, “We have continued to strengthen our balance sheet and to add strong management talent to our team to ensure that we can manage our ‘Farm-to-Home™‘ strategy in all current and expanded markets. We also continue to improve gross margin and cash conversion as we continue to support our initiatives building shareholder value.”

Financing
On April 23, 2021, the Company closed a C$10.3 million public offering announced in December 2020 (the Offering”), of units of the Company (the “Units”) at a price of $.55 per Unit.  Each Unit was comprised of one share of common stock of the Company and one share purchase warrant of the Company (a “Warrant”). Each Warrant is exercisable at an exercise price of C$0.68 until April 23, 2023. The Offering was led by Canaccord Genuity Corp. The offering included a short-form prospectus and an effective S-1.

Expansion of Consumer Packaged Goods Business

  • The Company’s Yerba Buena™ brand was launched in California, the first of our expansion markets for this top-shelf Oregon brand. It rapidly became the second-highest selling brand on our Budee platform covering 92% of consumers in the state, as well as at our Foothill Health and Wellness dispensary in Shingle Spring, CA.
  • The Cannavore brand of edibles expanded from its original line of Salted Caramel Chews to new flavors for the holidays including the launching of Irish Cream on St. Patrick’s Day, and experienced gains in our distribution channels for those dispensaries carrying TJ’s Gardens and Yerba Buena flower. The brand will be launching a new line of calorie-free, zero-refined sugar THC-infused gummies later in June which are unique to the market, meeting demand for alternative candies to high-calorie, sugary products. They are gluten-free, vegan, and suitable for diabetics with a low glycemic index and are all natural.

Retail Business Development

  • Comparable dispensary sales growth for the quarter was 49.5% vs. 2020, reaching a record of 2,614 transactions on 4-20, the annual celebration day for cannabis.
  • The Company increased its retail footprint for its brands in other dispensaries by 32% as it drives market share in Oregon and Nevada. Additional distribution white space remains to further accelerate growth.
  • Our Budee delivery business grew in the quarter vs. the three months ended March 31, 2020. This success includes adding over a dozen best-in-class brands in California during the quarter to enthuse consumers and increase on-line activation. This includes Premium Vape from Red, White and Bloom brands (CSE: RWB) (OTC: RWBYF); Caliva Flower, Deli Prerolls, Fund Uncle Prerolls, Yummi Karma, and Rehab by Yummi, and Chill Chocolates from The Parent Co. (NEO: GRAM.U) (OTCQX: GRAMF); Chong’s Cannabis; Dosist Pens, Tablets and Edibles; Kushy Punch Gummies; Loudpack Farms, and as mentioned, the Company’s Yerba Buena™ flower.

The Company continues its plans for accretive new product innovation with a queue of innovative products scheduled for launch throughout 2021. 

About Stem Holdings, Inc.
Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States . Stem’s family of award-winning brands includes TJ’s Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™ a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).

Forward-Looking Statements 
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations.  When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to: (i) the implementation of the Company’s business plan; (ii) the expansion of Stem’s brands and products into other markets; (iii) expected improvements to productivity; (iv) the expected launch of new brands and products by Stem; and (v) expected full integration of Driven into the business of Stem. 

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, insurance, intellectual property and reliable supply chains; and risks related to the Company and its business generally. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Investors are cautioned against attributing undue certainty to forward-looking statements.

Non-GAAP Measures
This news release contains references to certain measures that are not defined under a body of generally accepted accounting principles for publicly accountable entities in the United States, which is commonly referred to as “GAAP” or “U.S. GAAP”. For this purpose, a non-GAAP financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. These non-GAAP measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement GAAP measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under U.S. GAAP.

The Company uses non-GAAP measures, including adjusted EBITDA to provide investors with supplemental measures of its operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP measures. The Company believes that investors, securities analysts and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period and assess the Company’s ability to meet its future debt service, capital expenditure and working capital requirements.

The term “adjusted EBITDA” consists of net (loss) income and excludes interest, taxes, depreciation, amortization, share-based compensation, impairment of assets, acquisition costs, legal settlement costs, restructuring charges, and adjustments for fair value of biological assets, warrant liabilities, and stock appreciation rights. The most directly comparable measure to adjusted EBITDA calculated in accordance with GAAP is net (loss) income.

For further information, please contact:
Media Contact: 
Mauria Betts 
STEM HOLDINGS, INC. 
Mauria@drivenbystem.com 971.319.0303

Investor Contact: 
Valter Pinto / Elizabeth Barker 
STEM@kcsa.com 
212.896.1254 / 212-896-1203 

SOURCE Stem Holdings, Inc.

Indonesia Energy to Host Investor Conference Call to Present Initial Results on its First New Well Drilled at Kruh Block

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Indonesia Energy Corporation to Host Investor Conference Call to Present Initial Results on its First New Well Drilled at Kruh Block

 

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / May 18, 2021 / Indonesia Energy Corporation (NYSE American:INDO) (“IEC”), an oil and gas exploration and production company focused on Indonesia, today announced that it will be hosting an investor conference call on Tuesday, June 8, 2021 in order to provide an update (including initial results) on the drilling and completion of IEC’s first new producing well at Kruh Block, called “Kruh 25”. IEC will provide specific dial-in details for the call in a separate communication.

As previously announced, this first well commenced drilling on Wednesday, April 21 at 9:30 a.m. on Sumatra Island. The well has a target total depth of 3,400 feet. Kruh 25 is one of the 3 new wells being drilled at Kruh Block this year, which are expected to average production of approximately 170 barrels of oil per day over the first year of production. IEC anticipates that each well will cost approximately $1.5 million to drill and complete. Based on the terms of IEC’s contract with the Indonesian government and an assumed oil price of $63.50/barrel, each well is expected to generate $3.33 million in net revenue in its first year, which is more than double the cost to drill each well.

Mr. Frank Ingriselli, IEC’s President, commented “We are excited that our first well at Kruh Block is almost at total depth (expected in the next few days). Our 3 new wells, which we have the cash to drill, have the potential to grow production and cash flow for our company by over 200%. This drilling campaign is targeted to significantly grow our cash flow as we seek to maximize returns on our investments and grow shareholder value.”

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results (including, without limitation, the anticipated results of IEC’s 2021 exploration and production activities at Kruh Block and the impact of such activities on IEC’s results of operations) to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2020 filed on May 17, 2021 with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

SOURCE: Indonesia Energy Corporation Limited

Release – Comtech Telecommunications Corp. Awarded $1.0 Million Follow-on Contract for Ka-band Airborne SSPA/BUC

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Comtech Telecommunications Corp. Awarded $1.0 Million Follow-on Contract for Ka-band Airborne SSPA/BUC

 

Comtech’s Falcon Products Are a Leader in Performance and Features

MELVILLE, N.Y.–(BUSINESS WIRE)–May 18, 2021– 
May 18, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communications technologies, announced today that during its third quarter of fiscal 2021, its 
Santa Clara, California-based subsidiary, 
Comtech Xicom Technology, Inc., was awarded a follow-on order valued at more than 
$1.0 million for its Falcon 50Ka Solid-State Power Amplifiers (“SSPAs”) for an In-Flight Connectivity (“IFC”) application. These amplifiers feature a tri-band Block Upconverter (“BUC”) and are packaged in ARINC 791 compliant housings.

“IFC applications using our Falcon Ka-band GaN amplifiers enable travelers to simulate an in-home experience to stay informed, entertained and connected as they travel. In-flight bandwidth requirements keep rising as passengers become accustomed to high bandwidth applications and entertainment wherever they go,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp. “Comtech sees significant opportunity in this growing market and offers a portfolio of GaN-based products at Ku-band and Ka-band for IFC applications to keep people connected.”

Comtech Xicom’s Falcon encompasses Ku and Ka frequency bands and offers high linear power with excellent gain flatness and phase noise performance to support the latest waveform technologies and networks. The Ka-band Falcon implements multi-sub-band switching, gain adjustment, gain equalization, power consumption control, and cooperative system calibration support such as OpenBMIP.

Comtech Xicom Technology, Inc., a world leader in high-power amplifiers, manufactures a wide variety of tube-based and solid-state power amplifiers for military and commercial satellite uplink applications. The product range encompasses power levels from 8 W to 3 kW, with frequency coverage in sub-bands within the 2 GHz to 52 GHz spectrum. Amplifiers are available for fixed and ground-based, shipboard and airborne mobile applications. Please visit www.xicomtech.com for more information.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Product Media Contact:
Eric Schmidt, Vice President, Sales

Comtech Xicom Technology, Inc.
408-391-6534
eric.schmidt@xicomtech.com

Corporate Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Allegiant Drilling at Eastside Confirms Significant At-Surface Oxide Gold Mineralization

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Allegiant Drilling at Eastside Confirms Significant At-Surface Oxide Gold Mineralization

 

RENO, Nev., May 18, 2021 (GLOBE NEWSWIRE) — Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is very pleased to announce the results of 49 exploration RC drill holes, totalling 5,850 metres, drilled in the Castle Zone around the former producing Boss pit, located within the Eastside gold project. Eastside hosts a current NI 43-101 pit-constrained Inferred resource of 1,094,000 ounces gold equivalent from 57,050,000 tonnes grading 0.60 g/t AuEq*, however, the Eastside resources estimate which was carried-out in 2020, did not include the Castle Zone.

See Eastside property map (Map 1) here:

www.allegiantgold.com/nr/2020-01-27-map.pdf

The shallow at surface mineralization and good gold grade at the Castle Zone are a game-changer for the Eastside project for the following reasons:

  • Potential significant increase in contained ounces
  • Potential significant decrease in strip-ratio
  • Obvious starter-pit for a potential future Eastside mine

All assays have now been received and interpretation is continuing within the greater Castle Zone. Some of the highlights include:

  • 47 holes encountered mineralization within 45m from surface;
  • Significant intercepts included:
    • 5m of 1.85 g/t from Hole ES-196
    • 14m of 1.08 g/t from Hole ES-202
    • 4.5m of 2.32 g/t from Hole ES-211
    • 3.6m of 2.00 g/t from Hole ES-216
    • 1.5m of 3.86 g/t from Hole ES-222

The Drilling encountered very shallow gold best described as a blanket-like zone which commences at an approximate depth of between 0-30 meters, and consistently continues for 20-40 meters in thickness. Gold is hosted in Tertiary andesite and rhyolite tuff, associated with quartz stockworks, iron oxides along fractures, argillization, and occasionally massive silicification. The Tertiary volcanic rocks overlie Paleozoic rocks of the Palmetto Formation which were encountered at depth in nearly all the drill holes. Drill intercepts (using a 0.1 g/t cutoff gold) for the 49 holes are shown in an attachment form (Table 1). Most of the holes were angle holes drilled in a variety of directions at 45 degrees. Essentially all of the mineralization in drilling is deemed as “oxide” visually.

Table 1: Boss Drilling Results

https://allegiantgold.com/site/assets/files/2207/castle_area_boss_zone_-_2020_drilling_intercepts.pdf

Map 2: Boss Drilling Map & Hole Locations

https://www.allegiantgold.com/site/assets/files/2209/allegiant_boss_mine_area_january_2021.png

Peter Gianulis, CEO of Allegiant Gold, commented: “We continue to be pleased by the ongoing results and advancement at Eastside. Given the favorable location of the project, superior access to infrastructure, the shallow nature of the mineralization in the Castle Zone, and the potential for a low strip ratio, the results present a major leap forward for the Eastside project. Next steps planned at Castle will include expansion drilling, metallurgy, a resource estimate and a scoping study.”

* The updated resource estimate (“Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Project Technical Report, Esmeralda County, Nevada”) was conducted by Mine Development Associates (“MDA”) of Reno, Nevada with an effective date of December 30, 2019. Contained pit-constrained Inferred Resources of 1,094,000 AuEq ounces at 57,050,000 tonnes at 0.60 g/t AuEq (gold-equivalent ounces were calculated by ALLEGIANT using a silver/gold ratio of 80:1). Heap leach extractions are expected to be around 70% and 20% for gold and silver, respectively, using a three- stage crushing procedure. Milling with a fine grind is expected to result in extractions over 90% and around 50% for gold and silver, respectively. Utilizing a 0.15 g/t cut-off for Au, measured gold was 0.54 g/t and silver was 4.3 g/t. In accordance with NI 43-101 the MDA Technical Report dated January 24, 2020 will be filed on SEDAR. This report builds on and supersedes the NI 43-101 reports of Ristorcelli (December 2016) and Ristorcelli (July 2017) titled “Resource Estimate and Technical Report, Eastside Gold-Silver Project, Esmeralda County, Nevada” prepared for Allegiant with an Effective Date of July 25, 2017. A copy of the Eastside Technical Report can be found on SEDAR at www.sedar.com.

QUALIFIED PERSON

Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101, Standards of Disclosure for Mineral Projects, who has reviewed and approved the scientific and technical content of this press release.

ABOUT ALLEGIANT

Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

ON BEHALF OF THE BOARD

Peter Gianulis
CEO

For more information contact:

Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Allegiant Gold Ltd.’s (“Allegiant”) exploration plans for its gold exploration properties, the drill program at Allegiant’s Eastside project, the preparation and publication of an updated resource estimate in respect of the Original Zone at the Eastside project, Allegiant’s future exploration and development plans, including anticipated costs and timing thereof; Allegiant’s plans for growth through exploration activities, acquisitions or otherwise; and expectations regarding future maintenance and capital expenditures, and working capital requirements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled “Risk Factors” in Allegiant’s Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available on SEDAR under Allegiant’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. Allegiant undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

Source: Allegiant Gold Ltd.

Release – Stem Holdings dba Driven By Stem Reports Record Gross Revenue of $12.4 Million for CY21 First Quarter Results

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Stem Holdings d/b/a Driven By Stem Reports Record Gross Revenue of $12.4 Million for CY21 First Quarter Results

 

BOCA RATON, Fla., May 18, 2021 /PRNewswire/ — Stem Holdings, Inc., d/b/a Driven By Stem (“Stem” or the “Company”), a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States, today reported its financial results for the first calendar quarter ended March 31, 2021.

Highlights for the quarter ended March 31, 2021:

  • Gross revenue increased to a record $12.4 million from $2.7 million for the three months ended March 31, 2020.
  • Gross profit increase of 269% to $2.7 million as compared to $0.73 million for the comparable period in the previous year.
  • Retail gross revenue comps +49.5% vs. 2020, with 2,614 transactions in one day on 4-20, the annual celebration day for cannabis.
  • Budee™ DaaS revenues increased vs. three months ended March 31, 2020 in California and is poised to launch in Oregon in May, followed by Michigan in September.
  • Cultivation yields increased 7.8% vs. three months ended March 31, 2020, and our retail footprint for our brands increased by 32%.
  • Adjusted EBITDA of $1.7 million an increase from ($5.8 million) for the three months ended March 31, 2020 reflects ongoing operational improvements.
  • Subsequent to the quarter end, the Company closed on a C$10.3 million public offering, previously announced December 14, 2020, led by Canaccord Genuity.

Operational Updates

  • Budee™ delivery is poised to launch in Oregon in May 2021.
  • New retail dispensary to open in September 2021 in Michigan.
  • With retail opening in Michigan, Budee DaaS will launch for expanded state-wide market footprint by Labor Day, its third delivery state.
  • Launch of Yerba Buena™ brand cannabis flower in California, the first expansion market for the brand.

Management Commentary 
“Our record sales and the beginning of the successful integration of Driven Deliveries Inc. (“Driven”) has positioned us for greater growth as we expand the footprint of our retail, delivery, and branded product operations in high-growth markets,” stated Adam Berk, CEO of the Company. “Full integration and streamlined execution and expansion of Driven’s technology will continue over the next six months, to be completed by the end of 2021. We are leveraging our combined strength by simultaneously increasing market share of our own retail operations, as well as our branded products,” he continued. “Our plans for expansion in Michigan both at retail and with Budee delivery by Labor Day, as well as our ongoing efforts in New York, bode well for accretive growth throughout 2021. We are excited about our progress and driving synergies for continued growth in 2022.”

Mr. Berk continued, “We have continued to strengthen our balance sheet and to add strong management talent to our team to ensure that we can manage our ‘Farm-to-Home™‘ strategy in all current and expanded markets. We also continue to improve gross margin and cash conversion as we continue to support our initiatives building shareholder value.”

Financing
On April 23, 2021, the Company closed a C$10.3 million public offering announced in December 2020 (the Offering”), of units of the Company (the “Units”) at a price of $.55 per Unit.  Each Unit was comprised of one share of common stock of the Company and one share purchase warrant of the Company (a “Warrant”). Each Warrant is exercisable at an exercise price of C$0.68 until April 23, 2023. The Offering was led by Canaccord Genuity Corp. The offering included a short-form prospectus and an effective S-1.

Expansion of Consumer Packaged Goods Business

  • The Company’s Yerba Buena™ brand was launched in California, the first of our expansion markets for this top-shelf Oregon brand. It rapidly became the second-highest selling brand on our Budee platform covering 92% of consumers in the state, as well as at our Foothill Health and Wellness dispensary in Shingle Spring, CA.
  • The Cannavore brand of edibles expanded from its original line of Salted Caramel Chews to new flavors for the holidays including the launching of Irish Cream on St. Patrick’s Day, and experienced gains in our distribution channels for those dispensaries carrying TJ’s Gardens and Yerba Buena flower. The brand will be launching a new line of calorie-free, zero-refined sugar THC-infused gummies later in June which are unique to the market, meeting demand for alternative candies to high-calorie, sugary products. They are gluten-free, vegan, and suitable for diabetics with a low glycemic index and are all natural.

Retail Business Development

  • Comparable dispensary sales growth for the quarter was 49.5% vs. 2020, reaching a record of 2,614 transactions on 4-20, the annual celebration day for cannabis.
  • The Company increased its retail footprint for its brands in other dispensaries by 32% as it drives market share in Oregon and Nevada. Additional distribution white space remains to further accelerate growth.
  • Our Budee delivery business grew in the quarter vs. the three months ended March 31, 2020. This success includes adding over a dozen best-in-class brands in California during the quarter to enthuse consumers and increase on-line activation. This includes Premium Vape from Red, White and Bloom brands (CSE: RWB) (OTC: RWBYF); Caliva Flower, Deli Prerolls, Fund Uncle Prerolls, Yummi Karma, and Rehab by Yummi, and Chill Chocolates from The Parent Co. (NEO: GRAM.U) (OTCQX: GRAMF); Chong’s Cannabis; Dosist Pens, Tablets and Edibles; Kushy Punch Gummies; Loudpack Farms, and as mentioned, the Company’s Yerba Buena™ flower.

The Company continues its plans for accretive new product innovation with a queue of innovative products scheduled for launch throughout 2021. 

About Stem Holdings, Inc.
Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States . Stem’s family of award-winning brands includes TJ’s Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™ a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).

Forward-Looking Statements 
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations.  When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to: (i) the implementation of the Company’s business plan; (ii) the expansion of Stem’s brands and products into other markets; (iii) expected improvements to productivity; (iv) the expected launch of new brands and products by Stem; and (v) expected full integration of Driven into the business of Stem. 

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, insurance, intellectual property and reliable supply chains; and risks related to the Company and its business generally. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Investors are cautioned against attributing undue certainty to forward-looking statements.

Non-GAAP Measures
This news release contains references to certain measures that are not defined under a body of generally accepted accounting principles for publicly accountable entities in the United States, which is commonly referred to as “GAAP” or “U.S. GAAP”. For this purpose, a non-GAAP financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. These non-GAAP measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement GAAP measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under U.S. GAAP.

The Company uses non-GAAP measures, including adjusted EBITDA to provide investors with supplemental measures of its operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP measures. The Company believes that investors, securities analysts and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period and assess the Company’s ability to meet its future debt service, capital expenditure and working capital requirements.

The term “adjusted EBITDA” consists of net (loss) income and excludes interest, taxes, depreciation, amortization, share-based compensation, impairment of assets, acquisition costs, legal settlement costs, restructuring charges, and adjustments for fair value of biological assets, warrant liabilities, and stock appreciation rights. The most directly comparable measure to adjusted EBITDA calculated in accordance with GAAP is net (loss) income.

For further information, please contact:
Media Contact: 
Mauria Betts 
STEM HOLDINGS, INC. 
Mauria@drivenbystem.com 971.319.0303

Investor Contact: 
Valter Pinto / Elizabeth Barker 
STEM@kcsa.com 
212.896.1254 / 212-896-1203 

SOURCE Stem Holdings, Inc.