A Breakout Coming In Terra Tech Corp (OTCMKTS:TRTC)

Terra Tech Corp (OTCMKTS:TRTC) has been moving up the charts after selling off in August. We are seeing a similar pattern with TRTC that we saw in June and July. The stock established support at the $.30 level, hit resistance at $.40, and then broke through that resistance and ran to $.50. With the November ballot initiatives around the corner and an upcoming Q3 earnings report, TRTC looks to be heating up again.Shares of Terra Tech perked up at the end of September after the company put to rest any uncertainty shareholders may have had about the B Preferred shares being exempt from a potential reverse-split. Terra Tech filed an 8-K last week that removed any doubts.

On September 27, 2016, Terra Tech Corp. (the “Company”) filed a Certificate of Amendment to the Certificate of Designation of the Company’s Series B Preferred Stock (the “Amendment”) with the Secretary of State of the State of Nevada to provide for mandatory, automatic conversion of all of the shares of the Series B Preferred Stock into shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), upon the earlier to occur of (a) the Common Stock being listed by the affirmative action of the Company on any domestic or foreign stock exchange, or (b) (i) the consummation of a fully-underwritten public offering of the Common Stock with net proceeds therefrom to the Company of $15,000,000 or more, or (ii) the first closing of a private placement of securities of the Company with aggregate, scheduled net proceeds therefrom to the Company of $15,000,000 or more, whether in one closing or a series of closings thereunder.

Previously, investors were concerned over a Proposal Five, which had been intentionally omitted from the latest proxy statement ahead of the annual meeting to take place on September 26. It said:

Proposal Five, as set forth in our proxy statement, provided for an amendment to our Articles of Incorporation to implement one or more reverse stock splits of our common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of our Board of Directors, at any time or from time-to-time prior to September 26, 2017. Subsequent to the date of the Proxy Statement, our Board of Directors decided to withdraw Proposal Five from consideration at the Annual Meeting. Based on the recent trading history of our common stock and on meetings that our executive management team has had with representatives of various investment banks, investment funds, and other potential financing sources for our business, our Board concluded, at this time, that it would withdraw its earlier recommendation that our stockholders be afforded the opportunity to approve a reverse split of our common stock. In making its decision, our Board took the trading history and the results of those meetings into account when it concluded that the market for our common stock (per-share market pricing and liquidity), investor interest, and our financing and capital-raising abilities were satisfactory at this time and might not be materially enhanced if our stockholders were to provide the reverse split authority initially sought by Proposal Five. Accordingly, Proposal Five has been withdrawn from consideration at the Annual Meeting. Our Board, however, reserves the right to request the holders of our capital stock to approve a subsequent reverse split proposal at any point in the future.

With these issues put to rest, investors can now turn their attention to TRTC's business. Last month, the company announced that Edible Garden had started shipping its line of 4 inch potted living herbs to Wegmans Food Markets, Inc. in New Jersey. Wegmans, a privately held American regional supermarket chain headquartered in New York, operates 89 stores in the mid-Atlantic and New England regions.Edible Garden's living potted herbs are USDA-certified organic, allowing consumers to experience superior-quality, mineral rich produce, free of contaminants, pesticides and GMOs. Living Salads are Edible Garden's answer to bagged salad mixes, which often go limp within a few days of purchase. These "living salads", sold in clamshell packaging, long outlast competitor's products while maintaining maximum flavor, freshness, and nutrient content.Edible Garden produces local and sustainably grown hydroponic produce, including the following potted living herbs: chives, basil, parsley, oregano, dill, cilantro, mint, rosemary, sage and thyme. In addition to Edible Garden's organic range of lettuces and herbs, the Company also features the following vitamin and supplement brands; Vitamin Way®, Vitamin Whey Protein®, SlimTrim®, Surgex Sports Nutrition®, OmEssentials® and Bikini Ready®. CEO Derek Peterson said:

"We have more than tripled our organic 4 inch herb line production since the second quarter of 2016 due to supermarket demand and are delighted to announce that Wegmans, a nationwide supermarket chain, is one of our latest customers. As a result of the popularity of this product line, we are currently installing more automation table systems in our facility in Belvidere, NJ to increase production of this herb line as well as our SUPERLEAF™ salads. Our Edible Garden subsidiary continues to go from strength to strength as our products gain traction in new locations, including at major supermarket chains such as Wegmans. Our organic produce is becoming more and more popular as consumers become increasingly health conscious and concerned not just with the types of food they eat, but also the production methods used to grow these foods. We are delighted to be shipping to Wegmans in New Jersey so that even more people can experience our freshly farmed produce."

Currently trading with a market cap of $130 million, TRTC has been a big winner for pot stock investors this year. We think the bull run is just getting started ahead of Green Rush 2.0, which come November, voters in at least nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota. TRTC also has third quarter earnings coming out. We will be previewing our expectations and providing close-up analysis once they hit the tape and the subsequent earnings call. To stay on top of the latest developments on TRTC, sign up below!Disclosure: We have no position in TRTC and have not been compensated for this article.