Terra Tech Corp (OTCMKTS:TRTC) has expanded its retail businesses into Southern California via the purchase of entire assets of Tech Center Drive Management LLC, the firm which manages the Reserve OC medicinal cannabis dispensary.
Under the terms of deal, Terra Tech possess the right to run the dispensary, and to consolidate Tech Center Drive’s financial report into the firm’s financial results. Additionally, upon getting regulatory nod from the city of Santa Ana, the company has the alternative to buy the cannabis retail permit related with the dispensary for no extra consideration.
Derek Peterson, the CEO of Terra Tech, expressed that the Reserve has a status for first-rate, patient-focused consumer service and is anticipated to record steady cash flow to the firm. This represents another achievement in their M&A plan to rapidly expand their retail businesses without needing to invest considerable funds or time into building dispensaries. They intend to use the blueprint from the Blüm Oakland dispensary to cultivate sales at the Reserve and, at the same time, will re-brand the dispensary.
Peterson added that California has advanced as one of the United States’ major approved cannabis markets, with adult-use intended to come online in 2018. Legal sales in California are anticipated to hit $5.8 billion by 2021 as per ArcView Market Research, up from a projected $1.8 billion last year. Terra Tech will identify opportunities to expand its retail as well as cultivation capabilities in these key markets to drive forward their growth plan and enhance value for shareholders.
Terra Tech runs multiple dispensaries as well as extraction and cultivation facilities in Nevada and California. In Oakland, it has one Blüm dispensary running and a cultivation and extraction center under construction. The company has an extraction facility and Blüm dispensary, both of which are under construction, in San Leandro, California.