The "Big Picture" Vision for Stem Holdings
Where is Stem Holdings headed in 2019?
Stem Holdings (OTCQB: STMH, CSE: STEM) currently has active operations in Oregon, Nevada, and Oklahoma. Beyond their current operations projects, the company has had a busy year with all their mergers and acquisitions, and they are continuing to ramp up for 2019.
Stem Holdings was established through their early strategic partnership with TJ’s Gardens and utilizing their cultivation and production assets. Through this relationship, Stem Holdings has been able to evolve into a true “seed-to-sale” model, being vertically integrated from cultivation all the way to retail. In the process of developing this vertical integration, Stem Holdings has been successful with merging the best R&D teams, operators, contractors, scientists, cultivators, growers, extractors, and distributors in the Pacific Northwest. As a result of their focus on being the best, the company has also won quite a few awards for their CBD and THC strains and have become a premium brand in the Pacific Northwest's cannabis retail space.
Utilizing the knowledge that the Stem Holdings team has gained, they intend to model their expansions into additional states based on their currently successful Oregon model. Expansion plans include potential opportunities in California, Florida, Rhode Island, New Jersey, and internationally.
What’s the “big picture” vision for Stem Holdings?
Stem Holdings has a "big picture" model that begins with global scalability relying on quickly establishing a foothold in new legalized markets. With a belief in a long-term trend of global legalization, Stem is working toward blooming across the major markets in North America. The company also has created multiple profit streams, established new partnerships, and ensured ownership through retail and distribution rights. In terms of vision, Stem Holdings foresees themselves retaining their current Oregon seed-to-sale business model. This model is not only scalable, but allows them to continually produce the highest quality cannabis strains at commercial production capacity, which also permits the company to have larger profit margins. With all these current advantages for Stem Holdings, the company is confident that they can work to dominate the market share of the retail cannabis market.
Looking Toward the Growth of the CBD Market
While Stem Holdings is currently focused on the recreational cannabis market, Adam Berk, CEO of Stem Holdings, is also a big fan of CBD based products (cannabidiol). CBD is the natural cannabinoid found in cannabis that does not provide a consumer the “high” feeling, but does have many health and wellness benefits associated with it according to early research.
Berk and Stem Holdings hasn’t counted out the CBD market, and believes that CBD products will become a large and unique portion of the total cannabis industry. In a recent interview, Berk said "As we expand throughout the country and globally, we will continue to develop and invest in our products as it relates to THC and CBD. Because of our unique, high-quality CBD genetics, we could potentially look to develop a CBD cosmetics line or an organic CBD food business. We see huge upside potential for our company as it relates to CBD and will continue to invest in a product developed."
His remarks are on trend, as the CBD market is already expected to reach $22 billion by 2022, outpacing THC by $2 billion that year.
Stem Holdings understands the huge impact the CBD market will have and looks to dominate the market with global expansion, taking advantage of their vertical integration to increase profit margins across new revenue streams and new markets. With so many pieces in their 2019 vision, investors can rest assured that Stem Holdings will continue to be busy securing and executing various M&As to continue their expansion phase, while also preparing for the CBD rush.