Irvine, April 14, 2014 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC), a hydroponic company focused on sustainably grown produce and medical cannabis cultivation technology releases corporate update and revenue guidance of $7,000,000 for the full year 2014.
Sales through Edible Garden and its line of locally grown hydroponic produce, which is distributed throughout the Northeast, have been strong for Terra Tech since the close of the merger in April 2013. Management expects to realize approximately $7 million in revenue for the full year 2014. Due to the seasonality associated with their business the company expects the majority of their revenue to be in the 2nd and 3rd quarters.
Financial Update:
Terra Tech recently announced a $6.5 million financing of convertible debentures, Aegis Capital Corp. acted as placement agent for the offering. The proceeds are primarily being used for ramping up production of the company's new 5-acre hydroponic cultivation facility, developing the GrowMass program, working capital and competing for medical cannabis permits in Nevada. The company is currently holding approximately $3 million in cash and has drawn roughly $2.3 million of the recent debentures leaving over $4 million available to the company to execute on their business plan.
"We were fortunate to be able to raise the necessary capital to grow our business," said Terra Tech CEO, Derek Peterson. "As always management is focused on utilizing our capital in accretive ways. It's always difficult for a small company that is in growth mode to accurately forecast revenue, however we decided to estimate based on what we currently see in the companies pipeline of existing business. This forecast doesn't include any potential acquisitions, success in Nevada or any significant unexpected growth in our business, all of which we hope we achieve. We wanted to give investors both and achievable and conservative estimate for the year."
Edible Garden Update:
To date the new facility is operating at approximately 80% capacity, meaning there are plants growing in roughly 4 of the 5 acres. The company has recently announced a handful of new retailers carrying the Edible Garden brand including Fairway Markets, DeMoulas Market Basket, Marsh Supermarkets as well as new specialty produce buyers at both the Hunts Point Market in New York and Philadelphia's Wholesale Produce Market. The company is working aggressively on expanding their brand to new retailers throughout the country. In addition the company will be hosting an open house and ribbon cutting ceremony to be held at their Belvidere Farm in New Jersey on Wednesday, April 16th, between the hours of 10 AM and 3 PM. Shareholders, brand enthusiast and the local community will have an opportunity to tour the facility, familiarize themselves with the Edible Garden brand, view the new 5-acre facility, and meet key executives, including CEO, Derek Peterson, and COO, Ken Vande Vrede.
Nevada Update:
Terra Tech recently announced the formation of MediPharm LLC., a wholly owned Nevada LLC which has been formed for the sole purpose of competing for medical cannabis permits in the state of Nevada. Due to previously unknown Nevada regulations related to companies using the term "Pharm" the company will be amending its name to MediFarm LLC. The business licensing and special use permit process for Unincorporated Clark County will be opening in the 3rd week of April. In addition if MediPharm is selected at a county level, applications will be presented to the state of Nevada for further review and approval. The Company anticipates that process to be concluded by early June and state level selections to be made in the fourth quarter 2014. While Unincorporated Clark County is first in establishing and implementing their process other counties within the state will be opening up in the near future. Terra Tech intends on applying in multiple jurisdictions and updating shareholders as they successfully submit applications. If successful Terra Tech will have 18 months to begin operations and intends to evaluate the current legal landscape regarding medical cannabis laws before engaging in any type of cultivation or dispensing.
"Nevada is a great opportunity for the company as it allows us to compete for permits to operate in a for profit state, however they give us a year and a half to begin operations which we hope is enough time for the legal landscape to continue to fall in our favor," explains Terra Tech CEO, Derek Peterson. "Permits may not come around more than once and we didn't want the company to miss the opportunity to obtain them as they could provide a great growth opportunity for the us, however we are paying close attention to the developing laws and regulations and adapting accordingly."
CBD Extraction Update:
In February 2014 Terra Tech, through their subsidiary GrowOp Technology, announced it has entered into a strategic partnership with Inergetics, Inc. (NRTI), a leading developer of nutritional supplements, to jointly develop a line of natural Cannibidiol based nutritional supplements. To date the companies have built an impressive advisory board of established and experienced doctors to aid in the development of a premier brand of products. Due to quality and safety concerns over CBD and Hemp Oil derivatives from outside sources Terra Tech is developing a research and industrial extraction facility focused on the medical cannabis market. The facility will be located in Oakland, CA and is being built in response to what the company views as an increase in demand for high grade CBD as well as other botanical extracts. As a first step the company has purchased a custom 20 liter 5,000 PSI supercritical CO2 extractor from Eden Labs. The extractor is designed for botanical and nutraceutical extractions and will be utilized to extract CBD in an effort to have complete control and consistency as they continue to work with Inergetics in the creation of a CBD-based nutritional supplement. The company expects to take delivery of the extractor in the next few weeks.
The company is committed to providing additional updates throughout the remainder of the year. In addition you can follow their progress by visiting the company's Facebook page at http://www.facebook.com/terratechcorp.
About Terra Tech
Terra Tech Corp. (TRTC) through its wholly-owned subsidiary GrowOp Technology, specializes in controlled environment agricultural technologies. The company integrates best-of-breed hydroponic equipment with proprietary software and hardware to provide sustainable solutions for indoor agriculture enterprises and home practitioners. Our complete product line is available at specialty retailers throughout the United States, and via our website. Through its wholly-owned subsidiary Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as Shoprite, Food Emporium and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, and Pennsylvania.
For more information about Terra Tech Corp visit: www.terratechcorp.com
Visit us on Facebook @ http://www.facebook.com/terratechcorp
Follow us on Twitter @terratechcorp
For more information about Edible Garden visit: http://www.ediblegarden.com
Visit Edible Garden on Facebook @ https://www.facebook.com/ediblefarms
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Terra Tech Corp.'s filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to Terra Tech Corp.'s (i) product demand, market and customer acceptance of its equipment and other goods, (ii) ability to obtain financing to expand its operations, (iii) ability to attract qualified sales representatives, (iv) competition, pricing and development difficulties, (v) ability to integrate GrowOp Technology Ltd. into its operations as a reporting issuer with the Securities and Exchange Commission, and (vi) general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on Terra Tech Corp.'s website does not constitute a part of this release.