Derek Peterson, the Chief executive of Terra Tech Corp (OTCMKTS:TRTC), stated that in 2014 the company made a promise to its shareholders to expand gross margins. The company confirmed that they have achieved significant progress in the first quarter of year with the launch of cannabis concentrates. The product has substantial margins which will boost the performance of company in coming quarters. Also, the management took several measures in the quarter to reduce operating costs at EG.
The reinvestment of funds
The CEO of Terra Tech further said that IVXX must operate as a not for profit unit in California. It is the prime reason the funds generated from respective brand is reinvested back. It is done in order to meet compliance and regulations as applicable in California. The reinvestment of funds helps the company to reduce cash burn and support the development plans of infrastructure. Also, there is no need to raise additional capital, avoiding massive dilution of shareholders.
The management of Terra Tech is working in association with the California legislation to create a for-profit platform. It will work to expand company’s brand across the largest medical cannabis market in the country. One of the other target areas is Nevada State, which again is for-profit environment. Terra Tech has been working hard to achieve longevity in brand development.
The company reported that IVXX manufactured and transported cannabis concentrates in 1Q2015. The premium product was dispatched to numerous medical marijuana dispensaries in the State of California. The subsidiary Edible Garden firm also achieved success in expanding its footprint in Walmart stores.
In last trading session, the stock price of Terra Tech declined more than 3% to close the trading session at $0.1416. The decline came at a share volume of 2.25 million compared to average share volume of 1.08 million.