The national market for concentrates grew 40% last year as consumers become more comfortable with the intricate process of dabbing, MJBizDaily reported earlier this year.
According to Seattle-based data analytics firm Headset, sales of marijuana concentrates, which deliver a stronger dose of THC than other cannabis products, surged 40.5% last year in California, Colorado, Nevada and Washington.
Total sales of concentrates increased from $567 million in 2019 to $797 million in 2020, reported Headset.
According to Stem, the acquisition of Artifact will allow the company to capture additional market share, expand its presence in the fast-growing concentrates segment and maximize value for all its shareholders.
In addition, the firm seeks to increase its footprint of fully-owned dispensaries on the West Coast.
Launching Budee and More Dispensaries
Plans include expanding its presence in Oregon by launching Budee (the company’s delivery platform) and opening a dispensary in Salem and in Eugene.
Cannabis sales in Salem/Marion County totaled $73.5 million in 2020, growing 32.4% as compared to the prior year, according to the Portland Business Journal.
Stem seeks to integrate Artifact’s skilled R&D leadership and premier line of concentrates, including budder, shatter, crumble, rosin, THC A crystals and other popular forms, to reach new markets.
Strategic Highlights
“As a result of this strategic acquisition, we will benefit from the expertise and broad capabilities that the Artifact team will provide to our existing extraction team,” stated Adam Berk, CEO of Stem.
“Artifact is recognized for the potency and purity of its high-quality line of concentrates that have driven its growth in the Oregon market,” added Berk.
Jesse Johnson, the lead extractor at Artifact, commented, “We have worked with Stem in the past and trust the quality of the cannabis grown in its facilities.
“The synergies of this acquisition will build value for the company as we combine our expertise to launch cutting-edge products, as well as increasing their market penetration with an expanded retail and delivery platform,” Johnson concluded.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
![]({"default":{"load":"default","w":"80","h":"44","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/AAODS96.img?h=440&w=799&m=6&q=60&o=f&l=f"},"size3column":{"load":"default","w":"62","h":"34","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/AAODS96.img?h=343&w=624&m=6&q=60&o=f&l=f"},"size2column":{"load":"default","w":"62","h":"34","src":"//img-s-msn-com.akamaized.net/tenant/amp/entityid/AAODS96.img?h=343&w=624&m=6&q=60&o=f&l=f"}})
