If I look at the original TRTC PR on the NB Plant's deal, NB Plant's part in the deal is that of a supplier to Edible Gardens which EG has first purchase rights to anything NB Plant's grows. I gather that TRTC desires to eventually merge NB Plant's with EG though.
As stated by Ken Vande Vrede, "While we weren't able to execute a full merger at this point due to certain prohibitive covenants in the company's debt structure, we were able to ink a distribution deal which has significant value for us without the dilution or expense of the merger."
In the interim, TRTC gets 10%(?) of the revenue from the sale of those plants for branding, marketing, and distribution of the product. I gather the confusion/concern is over the apparent incestuous relationship between the owners of NB Plant's and TRTC?
TRTC is primarily a holding company, with subsidiaries that may grow, manufacture, package, and distribute products from various vendors, some of which may also be subsidiaries of TRTC or even subsidiaries of subsidiaries of TRTC. Much of this subsidiary arrangement has been predicated on the legal status of MJ and protecting the rest of the company should any kind of judicial or federal action be taken against one of these subsidiaries. Once the legal status of MJ is resolved I expect some of these layers of subsidiaries to become unnecessary and mergers will be initiated to flatten the organization.
I would imagine, but cannot know for sure, that whatever EG sales and whatever NB Plant's sells that is branded as EG, EG still gets 10% of the revenue from that sale, and it should since EG gets first rights to anything NB Plant's grows anyway. So no matter who sells it, EG profits from it. NB Plant's is just benefiting from the EG branding is all. NB Plant's profit belongs to NB Plant's of course and will probably go to pay down NB Plant's debt so that an actual merger is one day more practicable.
I believe that DP ultimately has his eye on EG owning the land and greenhouses that NB Plant's owns and that is why he is willing to rent the land our new EG greenhouse sits on in NJ from NB Plant's, rather than buying the land elsewhere. This would be NB Plant's goal as well, which is why the NB Plant's owners sit on the TRTC Bod. It's actually pretty logical.
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