'Best Use Of The Company's Balance Sheet': Terra Tech, OneQor Pharmaceutical To Merge

Terra Tech Corp TRTC, a vertically integrated and cannabis-oriented agricultural company, announced Monday that it has signed an agreement and plan of merger with the private pharmaceutical company OneQor Pharmaceutical.

Under the agreement, OneQor will merge with a subsidiary of Terra Tech in an all-stock transaction.

The joint company will work on new pharmaceutical growth opportunities for OneQor, and Terra Tech’s portfolio should continue with its operations in the short-term, Terra Tech said in a press release. 

Per the deal, Terra Tech shareholders will hold around 45% of the combined company, while OneQor shareholders and certain holders of OneQor Simple Agreements for Future Equity will obtain the rest 55% of the joint company.

The companies expect the merger to be finalized by early December.

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.

The new company plans to list on a national securities exchange and to consider a few strategic options “for the legacy Terra Tech business segments” that could come in the form of spin-off or merger. 

"With our scientific research and proprietary compounds, combined with Terra Tech's loyal shareholders, asset management, and corporate governance structure, we are confident OneQor will be able to positively impact the way society and big-box retailers approach OTC care. I have known the Terra Tech team for years and we believe that the alignment with Terra Tech will make this fundamental vision a reality," OneQor CEO Matthew Morgan said in a statement.

The cannabis industry is facing "strong headwinds" from both a capital and regulatory standpoint, Terra Tech CEO Derek Peterson said in a statement. 

"We feel confident that this is the best use of the company's balance sheet in order to achieve growth and profitable returns for shareholders."

Terra Tech shares were up 10.2% at 27 cents at the time of publication. 

Related Links:

Terra Tech Falls On Q3 Earnings

There's A New Cannabis Index To Help Investors Measure The Industry

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisM&ANewsMarketsOneQuor Pharmaceutical
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!
CCC-Oct-24-Banner-1

Click on the image for more info.

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry?

Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. 

Get your tickets now before prices surge by following this link.