Ms. Regina Costa reports

STEM HOLDINGS, INC. ANNOUNCES EFFECTIVENESS OF REVERSE STOCK SPLIT ON FEBRUARY 1, 2024.

Stem Holdings Inc.'s one-for-100 reverse stock split will take effect Feb. 1, 2024. The shares of Stem will continue to trade under the symbol STMH on the OTC Pink Sheets and STEM on the Canadian Securities Exchange.

The reverse split was approved by the company's shareholders on Dec. 28, 2022, and approved by the company's board of directors on Nov. 27, 2023, with a filing with the Nevada Secretary of State on Dec. 18, 2023.

Effective Feb. 1, 2024, the company's common stock will trade under Cusip 85858U305 and the company's former Cusip (85858U107) will be suspended effective Feb. 1, 2024. As a result of the reverse split, the company's 557,999,222 shares will be converted into 5,579,992 postsplit shares. All fractional interests resulting from the reverse split will be rounded up to the nearest whole share.

Company shares in brokerage accounts will automatically be converted to shares of Stem (Cusip No.: 85858U305) by Depository Trust Company (DTC) and the brokerage firms. There is no additional action required from investors with deposited company common shares.

Registered shareholders needing to contact the transfer agent should submit an on-line ticket on the Odyssey Trust website for service.

About Stem Holdings Inc.

Stem is a vertically integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail and distribution operations in the United States.

We seek Safe Harbor.