Terra Tech Corp (OTCMKTS:TRTC)
Shares of Terra Tech Corp (OTCMKTS:TRTC) fell 10.8% as investors awaited the company’s third quarter financial results. The cannabis-focused company is to report the financial results on Thursday, November 9, after U.S market close. An earnings call will follow the earnings release, hosted by the CEO.
TRTC Stock Catalyst
The earnings call comes at a time when Terra Tech Corp (OTCMKTS:TRTC) is in dire need of a catalyst. The stock has shed more than 30% in market value since the start of the year. It faces immediate support at $0.18, below which it could drop to a 52-week low of $0.14 a share.
Terra Tech Corp (OTCMKTS:TRTC) has underperformed the overall cannabis industry even as analysts insist the industry is experiencing robust growth in sales. Forbes reports that the market is set to grow to $3 billion by 2021 thanks to the legalization drive in the U.S.
NuLeaf Joint Venture
In a bid to take advantage of the growing demand for cannabis products, Terra Tech has inked a number of deals in recent months as it moves to strengthen its production capacity. The company has made a convertible note loan to NuLeaf Sparks Cultivation LLC and NuLeaf Reno Production LLC. The loans can be converted into 50% ownership of the two entities.
The joint venture will fast track Terra Tech Corp (OTCMKTS:TRTC)’s cultivation and production facilities which should allow it to increase the supply of its IVXX brand. NuLeaf Sparks is in the process of constructing a 30,000 square foot production facility while NuLeaf Reno is constructing a 15,000 square foot production facility in Reno Nevada.
“Entering into this agreement is a meaningful accomplishment for Terra Tech. This strategy enables us to rapidly move forward with capitalizing on the Nevada opportunity by granting access to new distribution channels and allowing us to grow market share while maintaining financial discipline over our capital expenditure,” said Mr. Peterson.
Under the terms of the deal signed between the two companies, Terra Tech Corp (OTCMKTS:TRTC) will distribute cannabis products to NuLeaf’s Lake Tahoe and Las Vegas dispensaries. NuLeaf’s production facilities will also supply Terra Tech’s Blum dispensaries in Las Vegas as well as third-party dispensaries in Nevada.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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