Hi-Tec®, Magnum® and Everyday California® brands to debut customized medically-directed CBD products in 2020
SHERMAN OAKS, Calif. and BOCA RATON, Fla., Sept. 19, 2019 (GLOBE NEWSWIRE) -- 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 products through licensing agreements with three of APEX's leading brands.
Stem Holdings has developed proprietary plant strains, 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 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, CannavoreTM and Supernatural HoneyTM; and a new CBD company, Dose-ologyTM. 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.
Safe Harbor Statement
This news release may contain forward-looking statements regarding future events and the future performance of Apex Global Brands. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and is based on currently available market, operating, financial and competitive information and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected or projected, including, among others, risks that: the Company and its partners will not achieve the results anticipated in the statements made in this release; global economic conditions and the financial condition of the apparel and retail industry and/or adverse changes in licensee or consumer acceptance of products bearing the Company’s brands may lead to reduced royalties; the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee®, Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®, Carole Little®, Tony Hawk® and Hawk Brands®, Liz Lange®, Everyday California® and Sideout® branded products could cause our results to differ from our anticipations; the Company’s dependence on a select group of licensees for most of the Company’s revenues makes us susceptible to changes in those organizations; our level of indebtedness and restrictions under our indebtedness; and the Company’s dependence on its key management personnel could leave us exposed to disruption on any termination of service. A more detailed discussion of such risks and uncertainties are described in the Company’s annual report on Form 10-K filed on April 23, 2019, its periodic reports on Forms 10-Q and 8-K, and subsequent filings with the SEC the Company makes from time to time. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
For Apex Global Brands:
Media Relations:
Apex Global Brands
Nadine Iacocca, VP Global Marketing
nadinei@apex-gb.com
Investor Relations:
Addo Investor Relations
Kimberly Esterkin, Patricia Nir
kesterkin@addoir.com; pnir@addoir.com
For Stem Holdings:
Media Relations:
Mauria Betts
Director of Branding and Public Relations
mauria@stemholdings.com
Investor Relations:
John Mills
ICR, LLC
john.mills@ICRinc.com