Terra Tech Corp (OTCMKTS:TRTC) has announced the closing of a merger with privately held OTC pharmaceutical company OneQor Pharmaceutical and its wholly-owned subsidiary in an all-stock transaction.
Terra Tech shareholders to hold a major stake in combine company
Before the closing of the merger, the companies have signed an amendment to the merger agreement under which pre-merger stockholders of Terra Tech will own around 79% of the combined company. On the other hand, OneQor stockholders, as well as certain OneQor Simper Agreements for Future Equity holders, will own the rest of the combined company.
Equally, according to the amendment concerning terms of certain OneQor SAFEs, such SAFEs will be turned into Terra tech common shares on the first day of trading. Once the SAFE 2s are converted shareholders of Terra Tech before the merger will hold 73.9% of the combined company with OneQor shareholders and certain holders of SAFE before the merger holding 19.7% with SAFE 2 holders holding the remaining 6.2% of the combined company
In connection with this merger, the combined company is planning to change its name to Onyx Group Holding. The company expects to begin trading on the OTC Market under a new symbol they will announce soon.
New company to focus on cannabinoid products
The newly merged company will be focusing on cannabinoid-based pharmaceutical development prospects and the expansion of its THC assets portfolio. The company will have three business verticals, which include cannabinoid-based products, Terra Tech’s THC assets, and OneQor’s pharmaceutical infrastructure.
Following the closing of the transaction, OneQor CEO Matthew Morgan will take over reigns as the CEO of the combined company and will join Terra Tech’s Board. Terra Tech CEO Derek Peterson will continue as the Board Chairman, and the board will have five members four from Terra Tech’s current board and Morgan.
Peterson indicated that they were delighted to bring Morgan on board to lead the combined company through the next phase of its evolution. He added that Morgan is one of the early adopted in the cannabis industry who has emerged as an important cannabis businessman.