Terra Tech Corp (OTCMKTS:TRTC) has continued to struggle to find new momentum despite a tremendous amount of rejuvenated momentum in the larger cannabis-related investment space over the past month. Simply put, TRTC has been searching for a new catalyst. Time will tell if the company’s latest financial release may play that role.
The company just announced its third quarter 2017 financial results for the period ended September 30, 2017. Among other points, total revs for the quarter came in at $10.1 million, compared to $7.0 million in the same period in 2016. According to the company, that increase was mainly driven by sales in the cannabis segment which boomed 81.8% higher, driven by the company’s Blüm segment.
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, the company just reported a steep top-line increase driven by the Nevada dispensary segment. This appears to have been partially offset by some factors involved in its non-cannabis segment. Shares of the stock haven’t really reacted much to results and remain in a relatively narrow consolidation pattern.
“The third quarter marked the expansion of Blüm’s cannabis sales into Nevada’s adult-use market for the first time,” said Derek Peterson, Chief Executive Officer of Terra Tech Corp., “This was a turning point for the Company, as it opened up our total addressable market significantly. We are pleased with our early-stage traction in the adult-use market, which drove 82% revenue growth in the cannabis segment compared with the same period in the prior year. To support the increased demand for cannabis products throughout Nevada we are expanding our cultivation and production facilities through an arrangement with NuLeaf, and expect to start ramping production at the new facilities in Sparks, NV and Reno, NV by the end of the year.”
Mr. Peterson continued, “We expect the favorable market conditions to continue to accelerate our growth, with California adult-use sales expected to come online in 2018. We have taken several steps to position the Company to leverage this major opportunity, including expanding our Blüm brand in California by operating a new dispensary in Santa Ana (previously known as The Reserve) and constructing a new Blüm dispensary in San Leandro, which is expected to open in early 2018. We are investing in our California production facilities so that we can rapidly pivot to meet demand from the adult-use market as legal sales commence in 2018. During the third quarter, we signed our second craft cultivator agreement to enable us to expand our production, and our new cultivation facility in Oakland, California is expected to be fully operational in early 2018.”
Now commanding a market cap of $177.1M, TRTC has a significant war chest ($9.1M) of cash on the books, which stands against 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%. You can bet we will update this one again as new information comes into view. 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.