Cannabis Company Unrivaled Eyes More U.S. Expansion After Merger
(Bloomberg) -- Unrivaled Brands Inc., the California-based cannabis company formed by a recent merger, sees “considerable expansion opportunity” in the U.S. West, its top executive said.
The company, created in a deal between Terra Tech Corp. and Umbrla Inc., now operates in California, Nevada and Oregon. Unrivaled estimates it will have revenue of more than $70 million in 2021 and have positive cash flow in the fourth quarter, according to a statement from the company announcing the close of the deal.
“We are continuing to look to expand our footprint,” Chief Executive Officer Frank Knuettel II said in an email to Bloomberg News. The multistate operator is focusing on adding brands and dispensaries in the states where it already operates. “A healthy pipeline of opportunities and discussions” are already taking place, he said.
The cannabis industry is rapidly consolidating as more U.S. states move to legalize it and sales grow. Multistate operations are an important part of the equation, since federal prohibition prevents the products from crossing state lines. Prior to the closing of the merger with Umbrla, publicly traded Terra Tech agreed to acquire SilverStreak Solutions, a direct-to-consumer cannabis firm that operates in the Sacramento, California, area.
Legal cannabis sales in the U.S. are expected to reach $41.5 billion by 2025, up from $13.2 billion in 2019, according to an estimate released in late 2020 from New Frontier Data.
Unrivaled Brands starts trading Thursday on the over-the-counter market under the ticker UNRV.
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