Terra Tech Corp (OTCMKTS:TRTC) is always interesting from a strategic perspective. Terra Tech has been relatively rangebound of late, but recent events may offer the potential for a new spark. The company just announced that it has expanded its retail operations into Southern California through the acquisition of 100% of the assets of Tech Center Drive Management LLC. Tech Center Drive operates The Reserve OC medical cannabis dispensary in Santa Ana, CA.
According to the company’s most recent press release, under the terms of transaction, Terra Tech has the right to operate the dispensary, and to consolidate 100% of Tech Center Drive’s financial results into the Company’s financial results. In addition, upon receiving regulatory approval from the city of Santa Ana, Terra Tech has the option to acquire the cannabis retail permit associated with the dispensary for no additional consideration.
Terra Tech Corp (OTCMKTS:TRTC) has positioned itself in the cannabis space as a company that engages in the design, marketing, and sale of hydroponic equipment with proprietary technology to create sustainable solutions for the cultivation of indoor agriculture in Newport Beach and Irvine, California.
TRTC operates through two segments, Hydroponic Produce and Cannabis Products. The company offers environmental controllers and timers; ballasts; bulbs; reflectors; nutrients; and portable hydroponic trailers and The Big Bud and Little Bud, which are custom fabricated proprietary cultivation systems for horticulture enthusiasts, local urban farmers, and greenhouse growers
Additionally, TRTC operates as a retail seller of hydroponic produce, herbs, and floral products, which are distributed in the Midwest and the Northeast United States; and produces and sells a line of cannabis flowers and cigarettes, as well as a line of cannabis pure concentrates, including oils, waxes, shatters, and clears to dispensaries in California.
The company operates through multiple subsidiary businesses, including Blum, IVXX Inc., Edible Gardens, MediFarm LLC and GrowOp Technology.
Blum’s retail medical cannabis facilities focus on providing the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions. Blum offers a broad selection of medical cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations.
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As noted above, TRTC shareholders will likely be happy to know that the company is expanding yet again, this time by buying out a Santa Ana marijuana dispensary.
Derek Peterson, CEO of Terra Tech, commented, “The Reserve has a reputation for first-rate, patient-focused customer service and is expected to generate steady cash flow to the Company. This represents another milestone in our M&A strategy to rapidly expand our retail operations without needing to invest significant time or funds into building dispensaries. We plan to use the successful blueprint from the Blüm Oakland dispensary to grow sales at the Reserve and, in due course, will re-brand the dispensary to Blüm, which is our recognized cannabis retail brand in Northern California and Nevada.”
Mr. Peterson continued, “California has emerged as one of the United States’ leading legal cannabis markets, with adult-use planned to come online in 2018. Legal sales in the state are expected to hit $5.8 billion by 2021 according to Arcview Market Research, up from an estimated $1.8 billion last year. Terra Tech will continue to identify opportunities to expand both its retail and cultivation capabilities in these core markets to drive forward our growth strategy and build value for shareholders.”
Traders will note basically flat action in the name over the past week of action. Market participants may want to pay attention to this stock. TRTC has a history of dramatic rallies. What’s more, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 10% above the average volume levels in play in this stock over the longer term.
Earning a current market cap value of $145.3M, TRTC has a significant war chest ($9.1M) of cash on the books, which must be weighed relative to about $576K in total current liabilities. TRTC is pulling in trailing 12-month revenues of $28.7M. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -19.1%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $TRTC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $TRTC, either long or short, and we have not been compensated for this article.
