The much anticipated commencement of the legal sale and use of recreational marijuana in the State of Nevada finally took place on Saturday, July 1, 2017. For Terra Tech Corp (OTCMKTS:TRTC), the event did not disappoint. All four of the Company’s Blüm cannabis dispensaries in Nevada made huge sales of cannabis for adult recreational use on the inaugural day. The Company’s dispensary in Reno was featured in a full-fledged TV news story by Reno’s local News 4 news station. The story shows how people waited in line up to 24 hours to be part of this “historic event” and be some the first customers to purchased recreational marijuana legally.
For the benefit of those readers that are not familiar with the Company, Terra Tech Corp. 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. 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, Winn-Dixie, Raley’s, Meijer, Kroger, and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, Pennsylvania and the Midwest. Terra Tech’s MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada.
The first two weeks of legal marijuana sales in Nevada have gone so well that the 47 retailers licensed to sell marijuana are running out of supply. This circumstance may be the result of a “fluke” in the new Nevada law. Under Nevada’s new marijuana law, alcohol distributors were given sole rights to transport recreational marijuana, at least for the first 18 months of sales. Consequently, the dispensaries are not able to immediately replenish their supply. The Nevada Tax Commission, a subsidiary of the state Department of Taxation, passed a new regulation to address the shortage in a unanimous vote. The commission found that the current pool of dispensaries licensed to distribute marijuana is insufficient to support the market. It therefore reopened the application process to allow dispensaries previously operating in the medical marijuana program to vie for a spot in the recreational market. The regulation come as a response to a “statement of emergency” issued by the department and endorsed by Governor Brian Sandoval. The statement of emergency allows for swift changes in regulations to solve the logistics problem.
TRTC stock is currently trading on a strong upward move very likely resulting from the events in Nevada. On July 3, 2017, the first trading day after the commencement of legal marijuana sales in Nevada, the stock gapped up at the open from $.1877 to $.2145, to then make an intraday high of $.2560. Since then the stock has continued to make new highs and has most recently closed at $.2749. Financial reporting remains unchanged from our last review of Terra Tech Corp. Current market capitalization stands at $164.05 million, on 596.76 million shares outstanding as of July 14, 2017.
The events that transpired as a result of the implementation of the recreational marijuana laws in Nevada are a clear indication of the untapped demand that exist for marijuana. As more and more states, and countries implement policies that legalize marijuana, the market for marijuana will continue to grow, as will opportunities for marijuana companies like Terra Tech Corp to capitalize on. We will be updating our subscribers as soon as we know more. For the latest updates on TRTC, sign up below!
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Disclosure: We have no position in TRTC and have not been compensated for this article.