Terra Tech Corp (OTCQX: TRTC) announced recently that through a non-binding letter of intent that it was planning a merger with Canadian-based Golden Leaf Holdings (CSE: GLH).
Both companies have their own cultivation and agriculture operations, however, Golden Leaf also has its retail operations that boast well-recognized brands in the industry.
The resulting merger would create an entity wholly owned by a subsidiary of Terra Tech, and while the transaction is still pending approval from regulators and board approval.
The agreement specified that Golden Leaf shareholders would receive 0.12 common shares of Terra Tech for each share of Golden Leaf they owned. The combined entity would control 41 permits across California, Nevada, and Oregon, along with an additional 21 permits pending throughout the United States.
“As new participants enter the cannabis industry the market is undergoing rapid consolidation. The companies that are vertically integrated with strong brands and multi-jurisdictional operations are best situated to achieve scale and retain market-leading positions,” said Terra Tech CEO Derek Peterson. “We are planning to merge with Golden Leaf’s operations because its seed-to-sale business model is complementary to ours, encompassing both the Oregon and Canadian market which represent new markets for us, and touching Nevada where we are focused on gaining market share.”
Golden Leaf’s management is just as eager to partner up with Terra Tech. William Simpson, Golden Leaf’s CEO, would go on to cite that the strength of Terra Tech’s “vertically-integrated” cannabis operations, along with their reputation and loyal customer base, make it an attractive strategic partner. “We are excited at the prospect of significantly expanding our size and reach through this merger and believe that the combined company will improve our growth trajectory and enable us to benefit from several operational synergies that will improve the running of our business,” he added.
Strategic mergers in the North American cannabis markets are increasingly becoming the norm, seen as a quick way for companies to expand their market presence, acquire a new pool of funding, or shore up strategic weaknesses in their businesses. As a young industry, these types of partnerships are likely to stay the norm as the market stabilizes in the coming years, further consolidating into a handful of mature companies.
Company Profile Golden Leaf Holdings
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Blüm’s retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada and California.
Blüm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated medical cannabis dispensaries throughout California and medical and adult-use dispensaries in Nevada. – Golden Leaf
Company Profile Terra Tech Corp
Golden Leaf Holdings Ltd. is a Canadian company with operations in multiple jurisdictions including Oregon, Nevada and Canada, with cultivation, production and retail operations built around recognized brands. Golden Leaf distributes its products through its branded Chalice Farms retail dispensaries, as well as through third-party dispensaries. Golden Leaf’s cannabis retail operations and products are designed with the customer in mind, focused on superlative in-store experience and quality products. – Terra Tech