American Green Inc (OTCMKTS:ERBB) reported that the company has completed the establishment of American Green – Colorado Inc.. It is an entity formed in Colorado to support the agreement first reported to the public and shareholders in September 2014.
The agreement
The deal with Herbal Elements will bring knowledge, local licensing, relationships, and corporate assets to the company. At the same time, American Green will support the new entity with its proprietary technologies like TrackX and Truth Lighting for the expansion of cannabinoids rich cannabis strains.
As per the agreement, the location of Herbal Elements will act as flagship business platform in the region. It will highlight the various products and services that American Green and its subsidiary firms have to offer to the growing cannabis industry. The team of Herbal Elements will support the company’s R&D facility.
The scope
The management believes that within two years, they can achieve a .5% market share in the Colorado extraction technology division. Stephen Shearin, the President of American Green, said that every acquisition contemplated or completed by company is a step forward toward strengthening their core business opportunities.
The Eagle/Vail facility will be used to establish an industry-leading offering for growers, states and municipalities. Herbal Elements is well-positioned to help company solidify company’s strategies. Moreover, manufacturing and extraction are the segments having the best margins in the industry. It stands valid for even those companies that cannot actively participate in sales. Greg Honan, the President of Herbal Elements, said that the focus on high cannabinoids strain medical cannabis is an area that has been developing rapidly.
In last trading session, the stock price of American Green Inc (OTCMKTS:ERBB) declined more than 4% to close the trading session at $0.00390. The decline came at a share volume of 15.21 million compared to average share volume of 12.34 million. The market cap stands at $17.30 million.
