Terra Tech Corp. (OTCQX: TRTC) has announced this morning that the company has signed an LOI to merge with Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF). Under the terms of the agreement a subsidiary of Terra Tech will merge with Golden leaf, with the resulting company to be held as a wholly-owned subsidiary of Terra Tech Corp. Shares of the resulting company will be now listed on the Canadian Securities Exchange.
Golden Leaf shareholders will receive 0.1203 common shares of Terra Tech in exchange for everyone share of the company that is held. After due diligence is completed the resulting company will own a combined 41 licenses associated with the cultivation, manufacturing, and distribution of cannabis.
Terra Tech Corp. owns a number of different established subsidiaries including Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. which all operate mainly out of the recreationally legal states.
Whereas Golden Leaf Ltd., is a Canadian public company that distributes exclusively through its Chalic Farms retail dispensaries in Oregon, Nevada, and California. The two companies own synergistic assets that will help bolster shareholder value.
Derek Peterson, CEO of Terra Tech gave this statement in the press release, “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. 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.”