SANTA ANA, Calif., Aug. 30, 2021 (GLOBE NEWSWIRE) — Unrivaled Brands, Inc. (formerly Terra Tech Corp.) (OTCQX: UNRV) (“Unrivaled” or the “Company”), a multi-state vertically integrated company focused on the cannabis sector with operations in California, Oregon, and Nevada, today reported UMBRLA, Inc.’s audited financial statements for the two prior fiscal years as well as the pro forma combined results of operations.
Based on the pro forma results of operations for the three months ended March 31, 2021, combined revenue of Unrivaled and UMBRLA, Inc. is $16.6 million, which is more than triple Unrivaled’s Q1 revenue of $5.1 million. This represents an annual revenue run rate for the combined company of $66.3 million. At the same time, the merger resulted in almost a doubling of assets, from $107.1 million to $197.0 million.
Frank Knuettel, Chief Executive Officer of Unrivaled Brands stated, “Not only does the merger dramatically increase our revenues, as we have previously indicated, but UMBRLA’s net margins are considerably stronger. Importantly, this is before the benefits of the consolidation, for both revenue and operating costs, that this merger is expected to yield in coming quarters. On the revenue side, we can drive more branded product sales through the additional dispensaries and on the cost side, expect cost savings from the elimination of some duplicative overhead. Further, on a combined basis, our second quarter revenues increased noticeably, partially based on the synergies this merger provided as well as better dispensary merchandising and operations management.
“With additional growth during the year expected to result in combined revenue in excess of $70 million, we expect the acquisition of Silver Streak Solutions and People’s (both are expected to close in the fourth quarter of 2021) to add considerably to our 2022 revenue. On a combined basis, we believe 2022 revenue will exceed $130 million, and we expect to be cash flow positive. While we have considerable work to do in opening our dispensaries in Los Angeles, Riverside and Santa Ana and our cultivation facility in Oakland, as well as expanding our distribution footprint with additive third party brands, we have a clear vision and path to demonstrable revenue growth and profitability.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any offer, solicitation or sale of the Company’s securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Unrivaled Brands
Unrivaled Brands is a multi-state vertically integrated company focused on the cannabis sector with operations in California, Oregon, and Nevada. In California, Unrivaled Brands operates three dispensaries, a state-wide distribution network, company-owned brands, and a cultivation facility, and has two additional cultivation facilities and a dispensary under development. In Oregon, we operate a state-wide distribution network and company-owned brands. In Nevada, by way of a joint venture, Unrivaled Brands operates a cultivation and manufacturing facility. Unrivaled Brands is home to Korova, the market leader in high potency products across multiple product categories, currently available in California, Oregon, Arizona, and Oklahoma, as well as Sticks and Cabana.
For more info, please visit: https://unrivaledbrands.com.
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Unrivaled undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for us to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as additional risks and uncertainties we face, are identified and more fully discussed in the “Risk Factors” section of Unrivaled’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to Unrivaled as of the date of this release. Unrivaled undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.
LR Advisors LLC.
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