Terra Tech Corp (OTCMKTS:TRTC) shares dipped 1.26% on Friday to $0.275 and were unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.22 to $0.75. The company has a market cap of $163.27 million at 568.22 million shares outstanding.
Terra Tech Corp is a cannabis-focused agriculture company that operates through two segments: Hydroponic Produce and Cannabis Products. Through its subsidiary, GrowOp Technology Ltd., the company is engaged in the design, marketing and sale of hydroponic equipment. It is also a retail seller of locally grown hydroponic produce, herbs, and floral products through its subsidiary, Edible Garden Corp. (Edible Garden).
The company intends to operate medical marijuana cultivation, production and dispensary facilities in Nevada through its subsidiaries, MediFarm, LLC (MediFarm), MediFarm I, LLC (MediFarm I) and MediFarm II, LLC (MediFarm II). Through its subsidiary, IVXX, Inc. (IVXX), it produces and sells a line of cannabis flowers and cigarettes, among others. The hydroponic produce segment consists of Edible Garden’s business and operations. Its cannabis products segment consists of IVXX’s business, as well as the proposed business operations of MediFarm, MediFarm I and MediFarm II.
Terra Tech Corp recently announced its financial results for the year ending December 31, 2016. It reported total revenues for the full year 2016 of $25.33 million, an increase of 154% from $9.98 million in the year ended December 31, 2015. For the quarter ending in December 31, 2016, it generated revenues of $7.13 million, an increase of 229% from $2.17 million in the same period in 2015.
However, the company still reported a net loss for the year ended December 31, 2016 of approximately $26.92 million due to an increase in sales, general and administrative expenses, an increase in other income, as well as the net loss associated with the issuance of convertible debt and warrants during the year ended December 31, 2016 compared to the prior year. Still, it had $9.75 million in cash as of December 31, 2016.
2016 was a watershed year for both Terra Tech and the U.S. cannabis industry,” said Derek Peterson, Chief Executive Officer of Terra Tech Corp. “We made significant progress establishing a strong retail presence in our key target markets by acquiring Blum, Oakland in California and opening of a total of four medical cannabis dispensaries in Nevada.”
He added that 2016 marked the first full year selling proprietary IVXX-branded premium medical cannabis products and that they are pleased to see IVXX sales have ramped up throughout the year as the marketing campaign gained momentum and new IVXX-branded products were launched.
“We reached these milestones at a time when the cannabis industry was undergoing a significant shift toward legalization, which resulted in more than half of the states in the U.S. now having comprehensive medical cannabis laws and eight states and the District of Columbia having legalized recreational cannabis in some form. The passing of recreational cannabis ballots in Nevada and California opened significant markets to us and we are confident that our 2016 progress has positioned Terra Tech as a market-leading cannabis company, paving the way for strong growth in the business in 2017 and beyond,” Peterson added.
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