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A Pot Stock Revival For Terra Tech Corp (OTCMKTS:TRTC)

A Pot Stock Revival For Terra Tech Corp (OTCMKTS:TRTC)
Written by
Alex Carlson
Published on
June 17, 2016
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Shares of Terra Tech Corp (OTCMKTS:TRTC) are making a comeback. TRTC sold off after earnings last month since the numbers from the Blum acquistion were not factored in. We expected this to occur and said that "We expect some profit taking in the short term as investors await the Q2 report with the Blum and Las Vegas numbers factored in. We believe these numbers will be better than analysts are anticipating and put TRTC on another bull run." With the second quarter not yet finished, it looks like the Terra Tech bull run is starting up again.

As we said, the numbers for the first quarter were solid, but did not include the Blum acquisition. Total revenues generated for the quarter ended March 31, 2016 were approximately $1.5 million, compared to $763k in the same period in 2015. This is an increase of 103% from the quarter ended March 31, 2015. The increase was driven largely by higher sales from the Edible Garden division. Short-term debt as of March 31, 2016 amounted to approximately $554,000, a decrease of approximately 40% compared to approximately $917,000 as of December 31, 2015.

Since Q1 numbers were released, the buzz surrounding TRTC has focused on its Edible Garden subsidiary. Terra Tech's Edible Garden shipped its first order of nutritionally-enhanced lettuce to ShopRite Supermarkets. The lettuce was developed in partnership with Nutrasorb LLC under the name SUPERLEAF, in conjunction with Rutgers University, and is the latest addition to Edible Garden's product line of non-GMO fruits and vegetables.

We like Edible Garden because it provides diversification for TRTC. Edible Garden cultivates local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite, Walmart, Winn-Dixie, Raley's, Meijer, Krogers, and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, Pennsylvania and the Midwest. Under the SUPERLEAF brand, Edible Garden sells two product lines, the Living Salad Mix and the fresh cut, ready-to-eat SUPERLEAF Spring Mix. The advantage for consumers is that these nutritionally-enhanced, proprietary Green and Red Lettuces were developed by scientists at Rutgers University following years of research and have high levels of fiber and chlorogenic acid. One serving of lettuce contains 2.5x as many antioxidants as blueberries, helping to maintain metabolic health and wellness. These lettuce super blends are grown 100% naturally and are non-GMO Project verified.

In addition to Edible Garden's organic range of lettuces and herbs, the company also features the following vitamin and supplement brands: Vitamin Way, Vitamin Whey Protein, SlimTrim, Surgex Sports Nutrition, OmEssentials and Bikini Ready. These vitamins and dietary supplements are already sold in over 5,000 major Food, Drug, Mass and Specialty stores across the U.S.

To help promote the Edible Garden brand, Terra Tech signed LPGA Professional, Katie Burnett, as a spokesperson. In her role, Ms. Burnett will promote Vitamin Way, a complete offering of whole-food-based vitamins, and Superfood protein mixes featuring Edible Garden's new SUPERLEAF brand of nutrient-dense ingredients derived from real SuperLeaf living lettuce. This partnership with Edible Garden is expected to drive brand awareness through the development of an integrated advertising campaign featuring Ms. Burnett with crafted messaging geared to appeal to consumers in retail partners' markets such H-E-B and Meijer. CEO Derek Peterson said:

"This partnership with Ms. Burnett is the beginning of our new advertising campaign to broaden brand awareness of Edible Garden's recently expanded product lines. Katie shares our mission to enhance the well-being of our bodies and the sustainability of our planet through high quality produce and will be an excellent spokesperson for our GFSI-certified and USDA-certified brands. We are very pleased with the ongoing developments at Edible Garden, as we continue to expand our offering, improve brand recognition and grow revenues. The organic and cleaner labeled food market is experiencing significant growth and we are well-positioned to take advantage of this opportunity. Moreover, Edible Garden provides steady cash flow for our business, supporting the overall development of Terra Tech."

Currently trading with a market cap of $115 million, there's been little news from TRTC regarding its Blum operations in California and Nevada. The market is eagerly awaiting second quarter numbers to see how strong the quarter was for Blum and TRTC. We believe TRTC will beat expectations and see the latest rebound as a sign other investors are thinking the same as us and jumping in ahead of time. While the Edible Garden is a great business and provides diversification, its Terra Tech's cannabis operations that get everyone excited. After all, Terra Tech is only pot stock that can proudly claim the title of being the only US-based, publicly-traded company that touches every aspect of the cannabis lifecycle. We will be updating Insider Financial as soon as we know more. For continuing coverage on TRTC, sign up for our free newsletter today and get our next hot stock pick!

Disclosure: We have no position in TRTC and have not been compensated for this article.

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