Terra Tech Archives - Green Market Report

William SumnerWilliam SumnerMay 9, 2019
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6min4350

It’s time for your Daily Hit of cannabis financial news for May 9, 2019.

On the Site

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the first quarter ending March 31, 2019, with net revenue rising 129% to $6.5 million from $2.9 million for the same time period in 2018. The rise in revenue was due to the addition of adult use sales in Canada. Net revenue increased 15% sequentially from $5.6 million in the fourth quarter of 2018.

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Arcadia Biosciences

Just two months after announcing the launch of Arcadia Specialty Genomics™, a new cannabis-dedicated division of agricultural crop improvement, the company has released images of its first crop of sun-grown, Hawaiian hemp. Arcadia’s new cannabis unit, cultivates six Hawaiian hemp strains on its 10-acre Hawaiian facility.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF) announced the pricing of its previously announced underwritten public offering 7 million common shares at C$20 per share. The offering should raise approximately C$140 million. As the shares are being sold by current shareholders, the company will not receive the proceeds from the offering. The selling shareholders have additionally granted underwriters a 30-day option to purchase another 15% of the common shares offered in the proposed public offering. Canaccord Genuity Corp. will act as the sole bookrunner for the offering.

Alternate Health

Alternate Health Corp., (CSE: AHG) (OTCQB: AHGIF) is looking to expand into Latin America. Today the company announced that it has entered into a joint venture agreement with Oltecate Enterprises, a COFEPRIS-licensed Mexican CBD distributor. Under the agreement the parties will establish a Mexican corporation with the name of Alternate Health Latin America S. de. R. L. de. C.V. (“AHLA”). Alternate Health will own 55% of the company and Oltecate will own 45%. Upon closing, Federico Cabo, owner of Oltecate Enterprises, will receive 1,500,000 common shares of Alternate Health.

Terra Tech

Terra Tech Corp. (OTCQX: TRTC) announced its financial results for the third quarter ending on March 31, 2019. Year-over-year, revenue for the quarter declined from $8.6 million in 2018 to $7.4 million. Management credited the decline in revenue to higher tax levels in the state of California, which depressed sales figures. Nevertheless, the company’s net loss for the quarter also declined, falling from $12.2 million in the first quarter of 2018 to $5.1 million. Likewise, the gross margin grew from 36.2% to 54.4%.

Neptune Wellness Solutions

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) has signed a definitive agreement to acquire all of the assets of SugarLeaf Labs, LLC and Forest Remedies LLC, a registered North Carolina-based commercial hemp company providing extraction services and formulated products, for $150 million. Included in the acquisition is a 24,000 square foot hemp production facility capable of producing 1.5 million kilograms of hemp annually. Under the agreement, Neptune will pay $12 million in cash and $6 million in common shares upon closing. Depending on the fulfillment of certain milestones, Neptune will pay an additional $132 million over the next three years in a combination of cash and common shares. The transaction is expected to close on or around July 31, 2019.


Debra BorchardtDebra BorchardtMarch 15, 2019
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4min15770

Terra Tech Corp. (OTCQX: TRTC) reported that its revenues for the year ending in December dropped to approximately $31.33 million versus last year’s approximately $35.80 million. The company blamed the drop on “the significant level of taxes that the State of California placed on cannabis sales which depressed the overall legal cannabis market.” Terra Tech did not break out its fourth-quarter earnings in the press release.

The company also delivered a 2018 net loss of approximately $39.8 million or $0.56 per share compared to a loss of approximately $32.7 million or $0.71 per share for 2017. Expenses also rose as SG&A for 2018 was approximately $43.30 million versus 2017’s $30.80 million.

“We faced several headwinds in 2018 that slowed our progress and impacted top-line results,” commented Derek Peterson, Chief Executive Officer of Terra Tech. “These challenges included navigating the changing regulations in the State of California, which affected sales from our retail businesses in the state, Blüm Oakland and Blüm Santa Ana. Our capacity to generate wholesale revenues in California was also impacted by the regulations which required us to relocate and upgrade our IVXX™ cannabis production to a new facility, effectively halting production in some months.”

“While these factors created challenges for us in 2018, they also drove us to make investments in cultivation and manufacturing infrastructure that will enable us to scale production and achieve greater IVXX™ distribution in California in 2019. The upgraded facility in Oakland, California is nearly complete and will support a ramp in production starting in Q2 2019. Other initiatives to drive revenue growth in the state include the anticipated launch of a branded delivery system in California, and our plans to establish a pop-up retail experience,” continued Mr. Peterson.

“In conjunction with these growth initiatives, we are also implementing strategies to improve fiscal responsibility and improve our bottom line in 2019. This includes streamlining our operations and headcount to mitigate operational burn and completing an assessment of all our assets to explore opportunities to sell certain lower performing assets and redirect resources into accretive opportunities. This strategy will also allow us to avoid accessing the capital markets for funding in the second half of 2019.

The company had $7.19 million in cash as of December 31, 2018, compared with $5.45 million as of December 31, 2017. The company said it had no short-term debt as of December 31, 2018, and that its long term debt was $18.3 million as of December 31, 2018, compared with $6.6 million as of December 31, 2017.

Following the end of the year, Terra Tech agreed to acquire the remainder of the interest in the Blüm Reno dispensary and the building where the facility is located from Forever Green NV and Forever Young Investments, LLC, affiliates of Heidi Loeb Hegerich. The transfer of those interests is subject to the approval of the Nevada Department of Taxation, which the Company expects to receive in approximately 60-90 days. The company also entered into a settlement agreement with Forever Green, Forever Young Investments and Ms. Hegerich to settle the lawsuit between them and the company.


Debra BorchardtDebra BorchardtDecember 18, 2018
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6min10810

The war between Terra Tech Corp. (OTC: TRTC) and its investor Heidi Loeb Hegerich is heating up. The first attack began with a lawsuit filed last week by the Reno, Nevada woman claiming fraud. Loeb Hegerich entered into a partnership with Terra Tech and became a co-owner of a Blum dispensary in midtown Reno. Loeb made some 50 different claims in the case and ultimately is unhappy that she hasn’t received any money back from her investment.

Among the claims, she says she contributed $633,156, and Terra Tech has only contributed $513,706, which was not as much as they had originally agreed to invest. Loeb also claims that Terra Tech’s financials weren’t audited properly as the company claimed and that funds were commingled with other joint ventures. The lawsuit notes that in March 2018, Terra Tech’s accounting firm Macias Gini & O’Connell issued an Adverse Opinion on Terra Tech’s internal financial controls.

The 80-page lawsuit goes on to describes various financial mishaps by CEO Derek Peterson and claims that the CFO Michael James has been involved in three companies that resulted in total shareholder wipeouts.

The lawsuit also details numerous bankruptcies by Terra Tech executives, which Loeb claims wasn’t disclosed to her prior to becoming partners. Loeb also claims that Terra Tech has tried to oust her from the company.

Terra  Tech issued a statement on Tuesday after the market closed refuting her claims.

Terra Tech said it will defend itself vigorously against the meritless claims filed in the State of Nevada. The company strongly denies these allegations and would like to highlight that these are only allegations by a business partner which have not been proven. Terra Tech also intends to pursue numerous counter-claims against Ms. Hegerich.

Terra Tech Chairman and CEO, Derek Peterson said, “Far from the image portrayed in recent interviews, Heidi Loeb Hegerich is, in fact, a wealthy, sophisticated investor with a history of disputes with business partners. We reaffirm our commitment to our shareholders to correct any misleading and inaccurate reports and remain committed to providing accurate information to our investors.”

The statement went on to say, “Ms. Hegerich’s lawsuit and recent interviews are an attempt to manipulate Terra Tech into paying money she is not owed. As Ms. Hegerich is well-aware, her allegations ignore the significant investment and expertise required to obtain a license and build out a retail facility. In fact, Terra Tech actually funded over 2.9 times the amount invested by Ms. Hegerich, including buying all of the product inventory to open the location and carrying operating losses until the opening of recreational sales.”

Ms. Hegerich believes the company tried to push her out of the company, but Terra Tech’s point of view is that it offered to purchase her share of the business at a greater than eight times return on her investment within two years.

With regards to the auditing of the company’s financials, Terra Tech said it “Is a publicly traded company audited by one of the largest accounting firms in the US. Additionally, MediFarm I has engaged an independent third-party accounting firm to review the books and records for the Reno business. Any allegations against the Company’s accounting practices are completely baseless in fact or evidence.” Terra Tech also claims that the accounting firm didn’t actually file an Adverse Opinion.

Golden Leaf 

In the middle of this battle of words, Golden Leaf decided against pursuing a potential transaction with Terra Tech as it announced on November 5. Lucky for them it was a nonbinding agreement.

Terra Tech reported that for the last nine months ending September 30, the company reported a net loss of $34 million. The company had revenues of $24 million, but expenses of $25 million.

The company is currently involved in a lawsuit with regards to its subsidiary Edible Gardens and former partners. No doubt expenses will rise for Terra Tech as it fights multiple lawsuits.

 

 


Debra BorchardtDebra BorchardtDecember 18, 2018
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5min3830

It’s time for your Daily Hit of cannabis financial news for December 18, 2018.

On The Site

Tilray Inc.

Tilray Canada Ltd., a subsidiary of Tilray Inc. (NASDAQ: TLRY) entered into an agreement with Sandoz AG, which is a part of the Novartis group, to increase the availability of high-quality medical cannabis products across the world. In the agreement, Sandoz AG will support the global commercialization of Tilray’s non-smokable/non-combustible medical cannabis products. Tilray and Sandoz AG may co-brand certain non-smokable/non-combustible products. Tilray may supply non-smokable/ non-combustible medical cannabis products and license rights to and from Sandoz AG in relation to such products. Both companies may also partner to leverage best-in-class knowledge to educate pharmacists and physicians about medical cannabis products.

Italy

Competition in Italy is heating up following a slew of major investments from Canadian firms seeking to expand their European cannabis footprint in a burgeoning market.

On December 6, Toronto cannabis investment vehicle Canopy Rivers pumped $17m into CanapaR Italy, an Italy-based organic hemp production and processing platform, taking its total shareholding to 49.9 percent as part of a $25m investment.

TriGrow Systems

MJ is switching its existing, vertically-integrated Denver facilities, as well as enabling its new ones in Las Vegas, to a method powered by TriGrow Systems that will standardize and automate the cultivation process. A combination of custom software and specialized hardware is resulting in consistent results from plants. This customization even extends to proprietary nutrients that are blended for specific strains as well as to optimize plant growth.

In Other News

Terra Tech Corp.

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF)  said that it has decided not to pursue a potential transaction with Terra Tech Corp. (OTCQX: TRTC). Golden Leaf and Terra had previously announced the signing of their nonbinding letter of intent on November 5, 2018.

This follows the explosive lawsuit filed last week by a  Reno, Nevada woman who is suing Terra Tech (TRTC) and claiming fraud. Loeb Hegerich became a co-owner of a Blum dispensary in midtown Reno. Loeb claims that Terra Tech’s financials weren’t audited as claimed and that funds were commingled with other joint ventures. In addition, there were numerous other claims about financial misdeeds. Loeb said she hasn’t received any money from the investment.

The lawsuit describes various financial mishaps by CEO Derek Peterson and claims that the CFO Michael James has been involved in three companies that resulted in total shareholder wipeouts.

Terra Tech issued a statement that strongly denies these allegations and said it would like to highlight that these are only allegations by a business partner which have not been proven. The company maintains that, after a full vetting of relevant facts, Terra Tech will be fully vindicated.

MJardin Group, Inc.

MJardin Group, Inc. (CSE: MJAR) announced its first medical cannabis research investment to fund two studies on the benefits of cannabinoids on epilepsy and schizophrenia. Beginning in the first quarter of 2019, the studies will be conducted in Salamanca, Spain for a period of one year, in collaboration with Salamanca University and the Institute of Neuroscience of Castilla y León – two of the leading institutions globally for the scientific research of the nervous system and its diseases.

Weekend Unlimited Inc.

Weekend Unlimited Inc. (CSE: YOLO) announced the appointment of Mr. Paul Chu to the role of President and CEO. As an Executive and Entrepreneur, Mr. Chu brings over 25 years of success across a variety of industries including CBD cannabis, technology, hardware/software, food and beverage, energy, telecommunications, hospitality, and real estate.


Debra BorchardtDebra BorchardtDecember 17, 2018
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4min4030

It’s time for your Daily Hit of cannabis financial news for December 17, 2018.

On The Site

New York Legalization

New York State Governor Andrew Cuomo presented his 2019 agenda on Monday morning to the New York Bar Association and it included his plan to legalize adult use cannabis. “Let’s legalize the adult use of recreational marijuana once and for all,” said Governor Cuomo.

During the midterm elections, the New York State government shifted to a Democratic control and it was expected that the new lawmakers would fully legalize cannabis. There have been estimates that legalizing cannabis could bring in an additional $1.3 billion in annual tax revenues with $336 million for New York City alone.

Tilray

Tilray, Inc. (NASDAQ: TLRY  )  has signed a binding letter of intent (LOI) to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE: LVWL), which will be sourced from the United States and Canada.  Hemp CBD is estimated to be a $22 billion market in the U.S. The product will be used for distribution of Tilray-owned wellness and medical products across North America.

LiveWell will supply Tilray with a minimum of 150 kilograms per month of wholesale CBD isolate cultivated and processed from hemp commencing in February 2019, through to July 2019. The amount then increases to a minimum of 300 kg/month for the remainder of the contract, until December 2019. Tilray has the option to increase the amount of CBD supply purchased to 500 kg/month, and there is an additional 12-month renewable option.

In Other News

Terra Tech

A Reno, Nevada woman is suing Terra Tech (TRTC) and claiming fraud. Loeb Hegerich became a co-owner of a Blum dispensary in midtown Reno. Loeb claims to have contributed $633,156, and Terra Tech has only contributed $513,706, which was as much as they had originally agreed to invest. Loeb also claims that Terra Tech’s financials weren’t audited as claimed and that funds were commingled with other joint ventures. In addition, there were numerous other claims about financial misdeeds. Loeb said she hasn’t received any money from the investment.

The lawsuit describes various financial mishaps by CEO Derek Peterson and claims that the CFO Michael James has been involved in three companies that resulted in total shareholder wipeouts. The lawsuit also detail numerous bankruptcies by Terra Tech executives. Loeb also claims that Terra Tech has tried to oust her from the company.

Terra  Tech issued a statement to News 4 in Reno saying, “We are aware of the allegations made by Ms. Loeb-Hegerich. Terra Tech strongly denies these allegations. We remind the public that the allegations in her complaint are just that – allegations by a business partner which have not been proven. We maintain that, after a full vetting of relevant facts, Terra Tech will by fully vindicated.

New Jersey

The New Jersey Department of Health have selected six businesses to apply for new medical marijuana permits. Two were chosen for three portions of the state to make sure patients had access.


Debra BorchardtDebra BorchardtNovember 5, 2018
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5min9140

Golden Leaf Holdings (OTCQB:GLDFF) announced it was merging with Terra Tech Corp. (TRTC) after the company reported rising losses in the third quarter. The Canadian-based cannabis company with operations in Oregon, Nevada and Canada delivered quarterly revenues of $5.1 million for Q3 2018, compared to $3.1 million for Q3 2017.

The net loss for Q3 2018 was $5.5 million or $0.01 per share loss, compared with a net loss of $3.2 million or $0.01 per share loss, for Q3 2017. The losses for the quarter increased primarily due to the changes in fair value of biological assets and warrant liability. Adjusted EBITDA for the third quarter of 2018 was a loss of US$2.9 million primarily driven by production costs and operating expenses.

Mr. William Simpson, Chief Executive Officer of Golden Leaf Holdings, commented, “Our third quarter revenue reached yet another record, achieving US$5.1 million, primarily driven by sale of flower in Canada after we received our Canadian Sales license from Health Canada, and seasonal improvements in our Oregon Retail revenue and the addition of two new Retail stores in Oregon when compared to the third quarter 2017. Adjusted EBITDA for the third quarter of 2018 was a loss of US$2.9 million primarily driven by production costs and operating expenses.

Gross profits also fell and were only $0.4 million or 9% of net revenue for Q3 2018, compared with US$0.7 million or 23% of net revenue for Q3 2017. Q3 2018 gross margins decreased primarily due to non-cash valuation of biological assets.

Terra Tech Corp. signed a non-binding letter of intent to merge with Golden Leaf Holdings Ltd.  saying that a wholly owned subsidiary of Terra Tech will amalgamate with Golden Leaf, with the resulting amalgamated corporation being a wholly owned subsidiary of Terra Tech.

Derek Peterson, CEO of Terra Tech, commented, “We are planning to merge with Golden Leaf’s operations because its seed-to-sale business model is complementary to ours, encompassing both the Oregon and Canadian market which represent new markets for us, and touching Nevada where we are focused on gaining market share. Its ‘Chalice Farms’ retail dispensaries are well known and have an excellent reputation in Oregon, and the wholesale side of the business offers diverse, high quality cannabis products for all demographics, which are complementary to our existing wholesale product lines. This transaction, if completed, will create a combined company that will control 41 permits across cultivation, manufacturing, distribution and retail spanning Oregon, California and Nevada, in addition to 21 pending permit applications in multiple jurisdictions throughout the U.S.”

The LOI stated that Golden Leaf shareholders would receive 0.1203 common shares of Terra Tech for each common share of Golden Leaf held.  Terra Tech currently has 79.2 million shares outstanding. As a condition of closing, Terra Tech will be required to list its shares on the CSE.  Listing will be subject to satisfying all of the CSE’s requirements. Upon closing, Derek Peterson will remain in his position as CEO, with William Simpson to become President of the combined company.

As of September 30, 2018, Golden Leaf had approximately $20.1 million in current assets, compared with $11.6 million in current assets at December 31, 2017. The increase is largely because of the bought deal financing which was completed on January 31, 2018,


William SumnerWilliam SumnerAugust 9, 2018
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5min5330

It’s time for your Daily Hit of cannabis financial news for August 9, 2018.

On the Site

High Times

The longest-running marijuana media company High Times is launching an unfiltered “over-the-top” online streaming-video product called High Times TV. The channel is live now on tv.hightimes.com and available as an app for iOS, Apple TV, Android, and Roku. HTTV  was created in order to give a home to the best cannabis-related videos across the internet. In turn, creators and fans will get a much-needed resource to find entertainment and information that continues to come under fire from traditional outlets that have tried to restrict content featuring marijuana. You may recall that recently, YouTube began deleting Spanish language cannabis related channels.

Canopy Growth Corporation

Canopy Growth Corporation  (CGC) has acquired all of the remaining outstanding shares of its Chilean in-market entity, Spectrum Cannabis Chile SpA . According to the statement, in exchange for Cannagrow SpA’s 15 percent interest in Spectrum Cannabis Chile SpA, Canopy Growth paid cash of US$750,000. Prior to the acquisition, the Company controlled 85 percent of the issued and outstanding shares of Spectrum Cannabis Chile SpA.

In Other News

Terra Tech Corp.

Today, Terra Tech Corp. (TRTC) reported its financial results for the second quarter, ending on June 30, 2018. Revenue for the quarter rose 11% from $7.8 million during the same period in the previous year to $8.7 million. The company’s net loss also rose from approximately $500,000 to $11.4 million. Cash on hand slightly declined, falling from $5.4 million as of December 31, 2017, to $5.2 million. “During the second quarter of fiscal 2018 we focused on both growing topline revenues, which reached $8.7 million for the quarter, and investing in building out infrastructure to support our longer-term growth strategy,” commented Terra Tech CEO Derek Peterson.

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TGOD) announced that is has chosen Shopify to build its e-commerce platform for medical cannabis and future recreational cannabis sales. Shopify is slowly becoming one of the leading sources in the cannabis industry for e-commerce solutions. The company has already entered into agreements to build e-commerce platforms for Aurora Cannabis, The Hydropothecary Corporation, and the provincial government of Ontario. “We are pleased to announce this agreement with e-commerce giant Shopify,” said Csaba Reider, President of TGOD. “We see tremendous value in this relationship and Shopify will play an instrumental role in our ability to rapidly scale and provide our premium organic cannabis to global markets.”

Cronos Group Inc.

Cronos Group Inc. announced that it has entered into a supply agreement with Cura Select Canada, Ltd. In terms of revenue, Cura is one of the largest cannabis companies and is best known for its Select Oil and Select CBD brands. Cronos has signed a five year take-or-pay supply agreement in which Cura will purchase a minimum of 20,000 kilograms of cannabis per year from Cronos Growing Company Inc., which Cura will use to develop and manufacture cannabis extracts and products. “We are thrilled to be partnering with one of the cannabis industry leaders in extraction technology and value-added products,” said Mike Gorenstein, CEO of Cronos Group. “This supply agreement is the start to a synergistic collaboration for our newly created entity Cronos GrowCo and through the structure with Cura, is the type of creative and forward-thinking partnership that is at the core of industry-leading infrastructure that Cronos seeks to establish.”

 


Video StaffVideo StaffMarch 23, 2018

4min11410

It is definitely earnings season as companies begin to report their numbers.

Terra Tech (TRTCD) delayed its earnings announcement from Thursday to Friday following the market close. On Friday the stock closed $3.77, but then on Monday after the investors digested the news, the stock fell to a close of $3.24 and was down to $3.11.

Full-year revenues for 2017  increased 41% to $35.80 million over 2016’s $25.33 million. But Terra Tech delivered a net loss of $32.68 for 2017, which was an increase over last year’s loss of $26.72 million.

CanniMed Therapeutics (CMMDF) reported that its sales rose 41% to $4.8 million from last year’s $3.4 million for the same time period. The company said that rising demand for dried medical cannabis caused those sales to jump 33% to 455kg with an average selling price of $10.56. as you know Aurora Cannabis is acquiring CanniMed.

AXIM Biotechnologies (AXIM) reported fiscal 2017 full-year results, with CEO Dr. George Anastassov highlighting “solid progress” the company is making on its clinical pipeline, including it getting a mass-market chewing gum to help cancer patients with nausea and vomiting.The company lost 8 cents a share, compared to a loss of 17 cents in fiscal 2016. In addition to the chewing gum.

Two of the largest cannabis companies in the world are joining forces to form a first of its kind venture. On March 19, 2018, Cronos Group Inc. and MedMen announced that they have entered into an agreement to form a cross-border joint venture.

MedMen has 18 production facilities operating in 3 states and owns the largest dispensary chain in California, Most recently, Cronos became the first pure-play cannabis company to become listed on the NASDAQ Exchange (NDAQ).

Cronos also announced $100 million bought deal selling 10,420,000 shares at a price of $9.60 each. The money will be used for expansion, general working purposes, and new investment opportunities.

Online vaporizer site Greenlane formerly known as VapeWorld, acquired its competitor, VaporNation. Greenlane is now one of the world’s largest vaporizer distributors. With this recent acquisition, the company will expand its footprint to include eight US Cites, six automated distribution centers, and approximately 200 hundred employees.

Gene Simmons, best known for being the bassist and co-lead singer of the rock band Kiss and a reality TV star, is finally getting his own marijuana company – albeit with a catch. Invictus Md Strategies announced on Tuesday that Simmons will be the company’s Chief Evangelist Officer. And  the new ticker symbol is now GENE. The company’s previous ticker symbol was IMH.

Simmons owns a significant percentage of the company and will also make appearances for the company, specifically at the annual general meeting, investor meetings, trade shows, as well as serving as the company’s spokesperson.

 

 


Debra BorchardtDebra BorchardtNovember 10, 2017
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Terra Tech Corp. (TRTC) reported third-quarter earnings after the market closed on Thursday with revenues rising as a result of the addition of Nevada dispensaries. Total revenues for the quarter ending September 30 were $10.1 million, which topped last year’s $7 million for the same time period.

Cannabis sales jumped by 81.8% as a result of higher sales from the four Blum Dispensaries in Nevada. This was offset by declining sales from the floral business Edible Gardens, which the company has discontinued. Gross profits for the quarter were roughly $2.3 million versus last year’s $1.3 million. Gross margins rose to 23% from last year’s 18% as the company shifts away from the lower margin floral business.

Operating losses are falling as Terra tech delivered a $3.9 million loss, which was an improvement over last year’s $4.7 million loss. Net losses rose to $7.8 million or one cent per share from last year’s net loss of $5.6 million or two cents per share.

“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.”

The company is now preparing for its California expansion. Terra Tech acquired the assets of Tech Center Drive Management, which operated The Reserve OC medical dispensary and will be rebranded as a Blum Dispensary. The company also signed its second Craft Cultivator agreement to grow the proprietary high grade “IVXX” cannabis flower and oils. That farm called Cultivar is located in Salinas, California and is approved for up to six acres of cannabis cultivation, to be grown in high tech, climate-controlled greenhouses.

“We expect the favorable market conditions to continue to accelerate our growth, with California adult-use sales expected to come online in 2018,” said Peterson. “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.”

Terra Tech has no short-term debt, but its long-term debt grew from $1.4 million last year to the current level of $2.1 million. The stock was lately trading at 21 cents, down from its 52-week high of 51 cents.

 

 



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