Last week, Terra Tech Corp (OTCMKTS:TRTC) was trading down close to its 52 week low. However, this week it started strong with gains of more than 14% on Monday’s trading session. The upside momentum continued on Tuesday as the share posted gains of more than 6% to close the trading session at $0.200, after 1.07 million shares changed hands.
Edible garden subsidiary
The news that helped Terra Tech to reverse its decline from 52-week low was not connected with its marijuana operations. It in fact was related with its Edible Garden subsidiary, the products of which are sold in Wal-Mart Stores, Inc. (NYSE:WMT). As per the contract finalized in 2014, the products were to be sold in total 75 Walmart stores. Now the deal has been expanded and four more centers are included in the list.
The expansion and extension of the deal was due to the consistent high-quality of products delivered by Terra Tech’s subsidiary. The recent news came at a right time and provided the support to declining stock. The first orders will be delivered next month. The new order and addition of new centers will help Terra Tech to turn its subsidiary cash flow positive in 2Q.
In addition to the extension of contract with Wal-Mart Stores, Inc. (NYSE:WMT), Terra Tech has been working to expand its reach for IVXX brand products. The company issued a new press release stating that its brand is now made available in another dispensary situated in downtown Los Angeles. The news of the Walmart contract extension and expansion was significant, particularly when Edible Garden has been company’s only substantial revenue source. The company has released numerous press releases in past few weeks updating on every single new dispensary where its IVXX brands will be available. Prior to this, it confirmed that the products will be available at Sherman Oaks dispensary.