Terra Tech (OTCQX:TRTC) and Golden Leaf Holdings (CSE:GLH) aren’t the strongest players in the cannabis penny stocks sector. However, by coming together, perhaps the result will be one bolstered company.

That’s Terra Tech’s idea anyway. The company announced it will be fully acquiring Golden Leaf Holdings in an all-stock takeover, valuing Golden Leaf at $0.23 CAD per share.

Cannabis Penny Stocks: Terra Tech Take Over

Golden Leaf Holdings will become a subsidiary of Terra Tech, and with $20 million in assets and Q3 revenues of $5.1 million USD, it’s not a bad one to have. 

However, it seems Golden Leaf shareholders aren’t too impressed with the deal; the GLH penny stock has dropped since the deal was announced. Currently selling for $0.21, the value has lost nearly 20% since Monday.

But perhaps the deal will set Terra Tech on a new trajectory. The takeover means Terra Tech will now control 41 sites across cultivation, manufacturing, distribution, and retail. Operations are predominantly in Oregon, California, and Nevada but the company has 21 pending permit applications across the US.

Further, a condition of closing will see Terra Tech required to list its shares on the CSE.

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So will this new listing improve the prospects of these cannabis penny stocks? Will Terra Tech bolster its corporate imagery and expand its size and revenue as a result of this takeover?

Is Terra Tech a Good Company for Golden Leaf?

The fallen GLH stock suggests its stockholders don’t believe Terra Tech to be a suitable acquirer of Golden Leaf. However, TRTC could prove nay-sayers wrong.

The company sales are growing. Though not exorbitantly bigger than GLH, Terra generated total revenues of $8.7 million USD for the quarter ended June 30th, 2018. This is an increase of 11% from $7.8 million in the same period in 2017.

This growth was attributed to the company’s dispensaries in Nevada, and sales from its Blüm, Santa Ana dispensary in California, which was acquired in September 2017.

When the acquisition was announced, the TRTC cannabis penny stock spiked to $1.89. However, it has since lost some of those gains and at the time of writing sells for $1.69, down -0.59% for the day.

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