Terra Tech Corp (OTCMKTS:TRTC) has been an interesting underperformer on a chronic level over recent months. Investors are looking for something to shift this narrative – to spice the Terra Tech story up. Well, the company has started to get active on a strategic level and may be starting to give the market what it wants. For example, the company just announced that it has made a $5 million investment in Hydrofarm Holdings Group, Inc. Hydrofarm was founded in 1977 and is based in Petaluma, California with ~300 employees globally.
According to the release, “It is one of the leading independent providers of hydroponics products in North America and recorded over $250 million in revenues in 2017. This strategic investment provides Terra Tech with an ownership stake in the longest standing specialty indoor garden wholesaler in the U.S. The Company also expects to leverage this relationship to drive down its capital equipment and cultivation input costs. Hydrofarm offers a full spectrum of hydroponics products, including approximately 5,000+ SKUs, and 1,000+ proprietary SKUs (25+ proprietary brands). It serves 1,700+ customers through brick-and-mortar, eCommerce, and commercial wholesale channels via nine distributions centers across North America.”
Terra Tech Corp (OTCMKTS:TRTC) trumpets itself as a vertically integrated cannabis-focused agriculture company. The company operates in two segments, Herbs and Produce Products; and Cannabis Dispensary, Cultivation and Production.
The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!
The Herbs and Produce Products segment offers hydroponic herbs, produce, and floral products.
The Cannabis Dispensary, Cultivation and Production segment operates medical marijuana retail and adult use dispensaries under the name Blüm, which provides a selection of medical and adult use cannabis products, such as flowers, concentrates, and edibles; and produces and sells a line of medical and adult use cannabis flowers, as well as a line of medical and adult use cannabis-extracted products comprising concentrates, cartridges, vape pens, and wax products in California and Nevada.
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.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5.2M against $6M, respectively).
The Numbers are There
As noted above, TRTC just announced that it has made a $5 million investment in Hydrofarm Holdings Group, Inc. (“Hydrofarm”). Hydrofarm was founded in 1977 and is based in Petaluma, California with ~300 employees globally.
This announcement has popped the stock higher, which certainly isn’t surprising. TRTC shareholders are now sitting on about 12% in gains over the past week. Shares of the stock have powered higher over the past month, rallying roughly 7% in that time on strong overall action.
“This investment provides our shareholders with access to, what we believe, is the largest independent hydroponic growing equipment and supply distributor in the U.S.,” Derek Peterson, CEO of Terra Tech, stated. “Hydrofarm has a stable business model and generates significant revenues from its broad customer base, which covers 1,500+ retailers. The hydroponics equipment and supplies industry is growing rapidly and we believe that Hydrofarm holds significant upside potential. As a result of the capital injection, it is well-positioned to expand its leading position both in the U.S. and Canada through both organic growth initiatives and its M&A strategy. Moreover, this strategic investment in a leading provider of hydroponics equipment provides synergistic benefits to Terra Tech and is expected to enable us to improve our supply chain and bring down our capital equipment costs.”
Terra Tech Corp (OTCMKTS:TRTC) pulled in sales of $8.7M in its last reported quarterly financials, representing top line growth of 11.2%.
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
The Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Roller Coaster Ride Continues
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) just announced its financial and operational results for the third quarter of fiscal 2018,...
Puration Inc (OTCMKTS:PURA) Catches a Fresh Bid on New Numbers
Puration Inc (OTCMKTS:PURA) just announced its third quarter financial report for the period ending September 30, 2018. According to the...
Why Expectations May be Dropping for Tilray Inc (NASDAQ:TLRY)
Tilray Inc (NASDAQ:TLRY) just reported financial results for the third quarter and nine months ended September 30, 2018. The company...
Why OrganiGram Holdings Inc (OTCMKTS:OGRMF) Gets More and More Interesting on the Pullback
OrganiGram Holdings Inc (OTCMKTS:OGRMF) recently announced that the company has signed a supply agreement with the Province of British Columbia....
Namaste Technologies Inc (OTCMKTS:NXTTF) Looks for Some More Magic
Namaste Technologies Inc (OTCMKTS:NXTTF) recently announced that the company has acquired over 28,000 registered users through NamasteMD Inc, and that...
A Sober Look at Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF)
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has presented itself as somewhat of a mystery item in the space. The company...
Marimed Inc (OTCMKTS:MRMD) Taps Wall Street Talent for M&A Strategy
Marimed Inc (OTCMKTS:MRMD) recently announced it has named Charles Finnie as its Chief Strategy Officer, effective immediately. Finnie, who most...
Why the Latest Dip in New Age Beverages Corp (NASDAQ:NBEV) May Be a Major Gift
New Age Beverages Corp (NASDAQ:NBEV) is starting to drift down into very interesting territory from both a technical and a...
Pyxus International Inc (NYSE:PYX) Could be an Opportunity in the Making
Pyxus International Inc (NYSE:PYX) shares were hammered to close out the week after announcing relatively dreadful fiscal Q2 results, which...
Aurora Cannabis Inc (NYSE:ACB) Shares Rebound as Company Turns Focus to South American Market
Aurora Cannabis Inc (NYSE:ACB) just acquired ICC Labs, or so appears to be the case. As a point in fact,...