Apex Global Brands (NASDAQ:APEX), a global brand ownership and marketing organization that manages, creates and elevates a growing portfolio of high-equity lifestyle brands, and the new medical division of Stem Holdings, Inc. (OTCQB:STMH)(CSE:STEM), a leading vertically-integrated branded cannabis company with state-of-the-art cultivation, processing, research and development, extraction, retail, and distribution operations in the United States, today announced a multi-brand partnership. Through this partnership, the companies will debut customized medically-directed CBD through licensing agreements with three of APEX's leading brands.
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Stem Holdings has developed proprietary plant cultivars, each of which is cultivated for the highest quality and efficacy. By leveraging Apex Global Brands’ best-in-class brand portfolio, retail distribution, and strong marketing platform, Stem Holdings will be able to bring innovative products to market featuring these proprietary strains. The custom product assortment has been inspired by active consumers of three of APEX's brands, which include:
- Hi-Tec® – a European-founded outdoor crossover brand offering footwear, apparel and accessories since 1974;
- Magnum® – a global supplier of military, workwear and service-industry footwear, apparel and accessories with a 37-year legacy; and
- Everyday California® – a La Jolla, California based ocean, adventure and lifestyle brand offering cool and casual apparel, accessories and footwear.
Apex Global Brands regularly collaborates with companies around the world within its portfolio of brands and has developed a screening process for all potential partnerships that focuses on innovation, quality, reputation and distribution.
“The selection process for a CBD partner was highly rigorous," said Henry Stupp, Chief Executive Officer of Apex Global Brands. "We wanted to ensure that as we expanded into new types of licensing agreements that the values of the prospective CBD partner’s organization fit well with APEX's own values and portfolio of brands. From the beginning of our discussions with Stem, the fit and benefits this partnership could offer our common consumers became more and more apparent. We cannot wait to share some incredible and innovative products with consumers early next year."
“We are proud to partner with Apex Global Brands to launch a unique line of CBD products,” stated Adam Berk, Chief Executive Officer of Stem Holdings. “Our medical division is collaborating with Apex Global Brands' team to launch well-positioned products that will deliver the benefits and values exemplified by the Hi-Tec, Magnum and Everyday California brands, while also creating new profit centers for their retailers across multiple channels. We are seeing strong enthusiasm from both teams and know that our combined experience will ensure that only the best-in-class CBD products go to market.”
First product shipments are expected to take place in early calendar year 2020.
About Apex Global Brands
Apex Global Brands is a global brand ownership and marketing organization that manages, creates and elevates a growing portfolio of high-equity lifestyle brands. The brand portfolio spans multiple consumer product categories and retail tiers around the world and includes Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®, Cherokee®, Tony Hawk®, Liz Lange®, Point Cove®, Carole Little®, Everyday California® and Sideout®. The Company currently maintains license agreements with leading retailers and manufacturers that span approximately 140 countries in over 20,000 retail locations and digital commerce. For more information, please visit the Company's website at apexglobalbrands.com.
About Stem Holdings, Inc.
As a vertically-integrated cannabis company, Stem is as a pioneer in the industry with its state-of-the-art cultivation, processing, extraction, retail, and distribution operations. Stem owns cannabis facilities in California, Nevada, Oklahoma, and Oregon and hemp facilities in Pennsylvania and New York and also participates in a research project in collaboration with Cornell University. Utilizing proprietary, sustainable cultivation techniques, Stem develops exceptional products that are safe and consist of lab-tested cannabis and CBD. Stem’s owned and partner consumer brands are award-winning and nationally known including cultivators TJ's Gardens® and Yerba Buena®; retail banners Stem and TJ's; infused product manufacturers, Cannavore™ and Supernatural Honey™; and a new CBD company, Dose-ology™. Stem's mission in supporting the health and happiness of people and the safety of our planet is evident through the Company's continued recognition for its community involvement, employee diversification, and its designation as a top place to work in cannabis, as well as dedication to environmental causes and outstanding leadership in the cannabis industry. For more information, please visit the Company's website at stemholdings.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the management of Stem with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) the ability of the Company to successfully achieve its business objectives, (ii) the expected curated product portfolio (iii) plans for Stem and the expected date of first product shipments (iv) expectations for other economic, business, and/or competitive factors, and (v) anticipated growth of Stem.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect the management of Stem’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Stem believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company’s business plans; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Stem and market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Stem has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Stem does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
No securities regulatory authority has in any way passed upon the merits of the proposed transactions described in this news release or has approved or disapproved of the contents of this news release.
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