Terra Tech Corp (OTCMKTS:TRTC) has announced that it has acquired the Black Oak Gallery, retail medical cannabis dispensary in Oakland. The dispensary is well established and has over 42,000 patients registered, with an estimated 1000 patients being served each day. The acquisition also includes on-site cultivation facilities, the dispensary’s own supply chain and proprietary strains. It is estimated that the dispensary generates yearly revenue of $14 million.
The CEO of Terra Tech, Derek Peterson, stated that integrating Blum Oakland into the company would allow them to touch every stage of the cannabis industry, including retail. He also revealed that TRTC’s IVXX brand will also be featured in the dispensary. The CEO further stated that the combination would allow TRTC to deliver consistent quality and value to its patients. The acquisition also strengthens the position of Terra Tech as a leader in the medical cannabis industry.
Peterson further highlighted that Blum was located in Oakland; a strategic location to capitalize from the medical cannabis market, once the Cannabis Regulation and Safety Act is passed in 2016. He concluded by highlighting the importance of the acquisition to stockholders and how it is a continuation of TRTC’s vision to transform through innovation and brand development. The Executive director of Blum, Salwa Ibrahim, stated that the two companies share a common ideology of having leverages as the first to make an entry in a new and rapidly expanding market. She concluded by stating that the partnership would further enhance the competitiveness of the two leaders.
Terra Tech believes that it would be able to generate $9 million in incremental revenues, starting from April 2016. As such it is estimated that full year revenues for TRTC would reach to $20-$22 million. It should be noted here that TRTC reported revenues of $9.98 million for its FY2015, 40.6% up from that in FY2014.
Terra Tech Corp (OTCMKTS:TRTC) closed at a share price of $0.31, after gaining 18.32% and having a trade volume of 10.95 million, during the April 4 trading session.