American Green Inc (OTCMKTS:ERBB) opened up to a brighter day as it announced the formation of American Green – Colorado Inc. The decision came in line with its earlier announcement relating to a deal with Herbal Elements Dispensary and Cultivation on September 2014. Following the formation of the company, Herbal Elements will facilitate the company with local licensing, knowledge, relationships and corporate assets to the deal.
Base in Colorado
At the same time, American Green Inc (OTCMKTS:ERBB) will extend its support for the build-out of the company, by way of providing its proprietary technologies such as TrackX and Truth Lighting. Moreover, the deal will allow the company to utilize the Herbal Elements’ location as a platform to display its offering to the cannabis industry. Moreover, the Herbal Elements’ location will serve as an R&D facility for it.
The company’s executives and its management are positive that the deal will help the company to acquire 5% of the market share in the Colorado extraction technology sector. Such expectations are formed based on a 2014 state-wide report, which projected legal cannabis revenues to surge as high as $1,750,000. American Green Inc (OTCMKTS:ERBB)’s President Steph Shearin said that each of the company’s acquisition is aimed towards augmenting the core business opportunities as well as framing a seed-to-sale strategy for the MMJ industry.
Shearin infused further hope by stating that sales inactive companies like them can benefit immensely from the huge margins that the extraction and manufacturing sector offer. He believes that by joining hands with the Herbal Elements, the company has set its foot on the right track to achieve revenues and create shareholder value.
Such an affirmation from the company kick-started a rally in the stock of American Green Inc (OTCMKTS:ERBB), which soared by as much as 15% to settle at $0.00460. However, the stock gave away most of the gains during the after-hours. The average volume of shares recorded on the day was 11.47 million.