Terra Tech (OTCQX: TRTC), a vertically integrated, cannabis-focused, agriculture company based in Irvine, CA, announced it is expanding its retail cannabis presence in Southern CA by purchasing The Reserve, a medical cannabis dispensary in Santa Ana, CA. Terra Tech bought the Reserve from Tech Center Drive Management LLC. It will receive the retail sales license with the purchase.
Shares were unchanged in trading the day of the announcement, closing at $0.23.
Terra Tech operates dispensaries, as well as cultivation and extraction facilities, through three cannabis subsidiaries— Blum, IVXX LLC, and MediFarm—in CA and Nevada. They also operate Edible Garden, a non-cannabis business, which cultivates hydroponic produce sold through major grocery stores. Terra Tech plans to rebrand The Reserve into a Blum dispensary.
Terra Tech currently operates a Blum dispensary in Oakland and is building a cultivation/extraction facility there. They are also building both a Blum dispensary and an extraction facility in San Leandro. They operate four Blum dispensaries in Nevada and recently announced an LOI to buy cultivation and production facilities in Sparks and Reno NV.
According to Terra Tech CEO Derek Peterson, The Reserve will generate steady cash flow. Going forward, Terra Tech plans to rapidly expand retail cannabis operations in CA and Nevada by purchasing existing dispensaries, to avoid the time and cost of building.
California, a leading medical market, will become the largest recreational market when it becomes legal in mid-2018. “Legal sales in the market are expected to hit $5.8 billion by 2021”, said Peterson, up from $1.8 billion in 2016.
The company has a market cap of $142.11m, with 644 million shares outstanding. Over the past year, shares have traded in a range between $0.138 – $0.560.
Source: terra tech