Terra Tech Corp (OTCMKTS:TRTC) is a penny play that has started to garner attention as the stock continues to hold key support around a quarter per share. The next big catalyst for this Company will probably be one of two things: 1) Its CEO, Derek Peterson (aka, “The Public Spokesperson for Medical and Legalized Marijuana”), is presenting later this week at the 2016 Aegis Capital Growth Conference in Las Vegas, where he will no doubt make waves; or 2) a monstrous slate of catalysts just around the corner for the marijuana space as a whole.
We bring the second point up because of a new report out last Monday from Cowen & Co. updating the industry with new growth prospects: The legal cannabis industry in the U.S. may grow to $50 billion in the next decade, expanding to more than eight times its current size, as lawful pot purveyors gain new customers and win over users from the illicit market. More on this below.
Terra Tech Corp (OTCMKTS:TRTC) trumpets itself 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.
The Company is led by Derek Peterson, aka “The Public Spokesperson for Medical and Legalized Marijuana.”
It 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.
It also 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.
TRTC 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.
IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces medical cannabis-extracted products for regulated medical cannabis dispensaries throughout California. The Company’s wholly-owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite, Walmart, Winn-Dixie, Raley’s, Meijer, Krogers, and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, Pennsylvania and the Midwest.
Terra Tech’s MediFarm LLC subsidiaries are focused on medical cannabis cultivation and permitting businesses throughout Nevada. The Company’s wholly-owned subsidiary GrowOp Technology, specializes in controlled environment agricultural technologies.
In addition to the report out by Cowen last week raising overall guidance for the space, another major catalyst that may light the whole Cannabis space on fire is the legislative activity that may be coming down the pipe very soon. In short, we have a whole lot of legalization votes coming our way right now, including a vote on legalizing recreational use in California in November, which could launch the $6 billion legal industry into something closer to $20 bln.
In all, we will see votes in four states in November on the potential legalization of marijuana for medical use, and five other state votes on recreational use of the drug for all adults.
TRTC tends to roll with the industry, so this may be a catalyst-rich Fall for the Company.
Currently trading at a market capitalization of $18M, TRTC has a decent store ($1.67M) of cash on the books, alongside total assets of nearly $67M, which compares with an appreciable load ($2.19M) of total accumulated debt. The Company will live or die with the Cannabis legislative ride. We know growth here is likely to be big, but just how big remains to be seen. You can bet on one thing: The O-D will be following this story every step of the way. To get the full story on TRTC subscribe below to Oracle Dispatch right now.