The medical marijuana dispensary, Blüm Oakland, has been acquired by Terra Tech making it the only U.S.-based, publicly-traded marijuana business “that touches every aspect of the cannabis lifecycle.” In the acquisition process, Terra Tech paid 1.5-times the projected forward 12-month revenue of the business. This makes the purchase price roughly $21 million, according to Forbes.
Terra Tech’s CEO, Derek Peterson tells Forbes, “Today, we can proudly claim the title of the only US-based, publicly-traded company that touches every aspect of the cannabis lifecycle—from cultivation, to extraction, to branding, and now, with the acquisition of Blüm, to retail sale.”
He goes on further by saying, “In addition to enhancing our cash-flow, this merger positions us to capitalize on the new regulatory landscape in California, which will change significantly with the implementation of the Marijuana Regulation and Safety Act in 2016.”
Derek Peterson is expecting many marijuana businesses to close due to not being able to conform to new business conditions. In California, marijuana businesses can operate for profit. The new partnership between Blüm and Terra Tech plans to obtain permits to enter the Nevada market as well.
Director of Terra Tech, Mike Nahass says, “As we continue to develop our long term strategy in Nevada, it has always been our goal to also focus on near term acquisitions that have immediate value to our stockholders.”
Executive Director of Blum, Salwa Ibrahim says that, “We have always prided ourselves on working with those at the forefront of the legal cannabis industry and this new partnership with Terra Tech is an exciting step forward for the Blüm team.”
Terra Tech, TRTC, is classified as a penny stock and shares are traded on the OTC Markets. The company, as a whole, has a value of $25 million. It uses hydroponic farming practices, making it ideal for growing medical marijuana.