Stem Holdings Launches Medical Cannabis Division

  • New division to develop and produce exclusive CBD products initially for dermatology and gerontology markets

  • Dr. Drore Eisen, an accomplished dermatologist with over 30 years of practice, joins as Medical Director of Stem Medical Holdings

BOCA RATON, FL, Aug. 22, 2019 – Stem Holdings, Inc. (OTCQB: STMH CSE: STEM) (“Company” or “Stem”), a leading vertically-integrated cannabis company with state-of-the-art cultivation, processing, extraction, retail, and distribution operations, announced today the launch of Stem Medical Holdings (“SMH”), a new division focused on cannabidiol (CBD), an active ingredient in cannabis. SMH will develop, produce and market exclusive medical CBD products initially for dermatology and gerontology, with plans to penetrate additional medical product markets.

In their July 2019 report, Brightfield Group, a research firm focused on the legal CBD and cannabis industries, estimates the U.S. CBD market will grow over 700% in 2019 to $5 billion from $620 million in 2018 and reach $23.7 billion by 2023.

Drore Eisen, M.D., D.D.S., will oversee the newly formed SMH division, as Medical Director, bringing more than 30 years of medical experience to the role. Fusing Stem’s proprietary cannabis strains cultivated for quality and efficacy for many years with the world-class research and expertise of Dr. Eisen, SMH intends to create and market medical CBD products consistent with Stem’s mission and standards of supporting the health and happiness of people

“We are very pleased to welcome Dr. Eisen and to launch Stem Medical Holdings to serve this market with unique products,” said Mr. Adam Berk, Chief Executive Officer of Stem. “Dr. Eisen brings decades of experience in the dermatology and gerontology fields. We are confident that he will lead our medical division to further position and drive growth for Stem as a pioneer in the industry with differentiated medical cannabis offerings that appeal to all consumers seeking its medical benefits.”

Dr. Eisen has practiced dermatology for more than 30 years, including serving as Co-Director of Dermatology Research Associates in Cincinnati, Ohio from 1990 - 2014. Dr. Eisen has served as a principal investigator or co-investigator in over 80 clinical trials. As a consultant to many major and start-up pharmaceutical companies, Dr. Eisen has been instrumental in developing study design, writing protocols, and educating other physicians about medical products. He has also played a key role in the clinical expansion of Procter & Gamble’s oral prescription care products by developing clinical protocols and managing all national and international clinical trials. His background in dentistry, combined with dermatology, enhanced his contributions in these areas.

“I am honored to join Stem’s advisory team as the Medical Director of Stem Medical Holdings,” stated Dr. Eisen. “Stem has firmly established itself as a pioneer in the cannabis industry with a robust portfolio of brands and products for medical applications. I am excited to have the opportunity to bring my experience in treatment and research to advance Stem’s medical cannabis R&D and product development in order to help patients and to position Stem as a leader in this field,” he concluded.

ABOUT DR. DRORE EISEN

A well-known and honored dermatologist, Drore Eisen M.D., D.D.S. has practiced dermatology for over three decades after graduating from The Medical College of Virginia. He is also a Doctor of Dental Surgery, having first completed his undergraduate work at Columbia University. In addition to his work in product development and clinical testing, Dr. Eisen has collaborated on cancer research projects with The National Cancer Institute, and, as a sought after medical expert, he chaired the Oral Diseases symposium at the American Academy of Dermatology annual meeting for six years, presenting numerous lectures. He also has served as a Visiting Professor at local, state, national, and international meetings. He has co-authored two textbooks and over 50 articles on medical diseases including publications in The New England Journal of Medicine and The Lancet. Dr. Eisen was recognized as A Best Doctor by Cincinnati Magazine from 1997 – 2019 and is the recipient of numerous awards, including the American Academy of Dermatology’s Educational Leadership Award and the Mayo Clinic’s Harold O. Perry Lecture Award.

ABOUT STEM HOLDINGS, INC.

As a vertically-integrated cannabis company, Stem has positioned itself as a pioneer in the industry with its state-of-the-art cultivation, processing, extraction, retail, and distribution operations. Stem owns cannabis facilities in Nevada, Oklahoma, and Oregon, 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, and include cultivators: TJ's Gardens and Yerba Buena; retail operations: Stem and TJ's; infused product manufacturers: Cannavore and Supernatural Honey; and a CBD brand: 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 a top place to work in cannabis, dedication to environmental causes, and outstanding leadership in the cannabis industry.

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) plans for SMH and its product offerings, (iii) expectations for other economic, business, and/or competitive factors, and (iv) 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.

For further information, please contact:

Media Relations:

Mauria Betts

Director of Branding and Public Relations

971-266-1908

mauria@stemholdings.com

Investor Relations:

John Mills

ICR, LLC

(646) 277-1254

john.mills@ICRinc.com


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