Terra Tech Corp (OTCMKTS:TRTC) looks to finally be out from under the dark cloud that has been hanging over the company for the past few months. A nasty lawsuit from a former partner has been resolved and finally, things are looking up for TRTC and its shareholders. We said back in December that it was time to buy the dip when the stock was trading at $.56 a share. After yesterday’s explosive move higher, our subscribers are now sitting on 160% plus gains. This is the best start to a New Year for TRTC in a long, long time.
First up, a little background info for those that are not familiar with TRTC. Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including Blüm, IVXX Inc., Edible Garden, and MediFarm LLC.
Blüm’s retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada and California. Blüm offers a broad selection of 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 cannabis-extracted products for regulated medical cannabis dispensaries throughout California and medical and adult-use dispensaries in Nevada.
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, Ahold, Aldi, Meijer, Kroger, Stop & Shop and others nationwide.
Terra Tech’s MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada.
Resolving Old Business
TRTC started picking up after the company acquired the portion of the Blum Reno dispensary from its partner, Heidi Loeb Hegerich. She was also suing TRTC and had accused the company of numerous sins, including stock manipulation and false accounting. With this suit now settled, TRTC no longer had to deal with those allegations and falsehoods.
As a result of the agreement, Terra Tech Corp.’s ownership in the Blüm dispensary, including its cannabis licenses, will increase from 50% to 100%, and Terra Tech Corp.’s ownership in the building which houses the dispensary will increase from 50% to 100%. TRTC CEO Derek Peterson said:
“This purchase allows us to have complete ownership and control of the Reno Blüm dispensary, which provides much-needed cannabis products to the local medical and adult-use markets, at a price that we believe accurately represents a fair value. It also settles the lawsuit with Heidi Loeb Hegerich and we are pleased to put this matter behind us and look to the future. We continue to execute against our growth strategy in Nevada, and have recently shipped our first products from our new Sparks, Nevada cultivation facility to our retail Blüm dispensaries across the state. These will be marketed to our customers and patients under our premium IVXX™ brand.”
Renovation of Oakland Facility
Earlier this month, TRTC completed the renovation of its cultivation facility located on West Grand Avenue, Oakland, in California. The newly renovated facility features an upgraded power capacity to allow for more output and a larger vegetation room to support the cultivation of a greater variety of cannabis strains. The rooms are redesigned to incorporate better environmental controls, therefore improving the Company’s ability to cool and dehumidify the rooms and minimize the risk of mold growth. The facility is equipped with a total of 112 high-pressure sodium light bulbs (28 bulbs per room) capable of flowering 1,120 pounds of cannabis a year. It also has 18 LED flowering lights that allow for more efficient and environmentally sustainable cultivation. After perfecting the LED lights growing style, Terra Tech aims to convert the facility to 100% LED flowering lights.
While it is still too early to say TRTC is out of the woods yet, things are certainly looking better than last year. We here at Insider Financial have been critical of CEO Derek Peterson, but we do commend him for resolving the Reno issue in a timely manner. With earnings coming out on March 14th, we will get a better picture of whether this bounce is for real or not. We are hoping that 2019 is a banner year for TRTC and one which we will be watching closely.
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Disclosure: We have no position in TRTC and have not been compensated for this article.
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