Terra Tech Corp (OTCMKTS:TRTC) entered a pact with Picksy LLC to offload Blum Desert Inn Retail Dispensary based in Las Vegas, Nevada at 1130 East Desert Inn Road. The deal, which is valued at $10 million, will be completed in 90 days. Picksy will pay cash of $7.2 million and the balance in the form of a promissory note. The company will pay an interest of 5% for the balance $2.8 million. The sale is subject to the jurisdictional and state approvals.
Terra Tech opened the 5,220 Sq. ft. facility in October 2016 in Las Vegas Nevada to sell shatters, flowers, premium cannabis, oils and waxes sourced from reputed providers. The valuation of the dispensary has considerably increased since its purchase. The company believes sales of the dispensary increase the value for shareholders.
Chief Executive Officer of Terra Tech, Derek Peterson said the planned sale is to promote growth. He said the company would use the proceeds for California based productive assets. It plans to achieve the momentum with enhanced investments in sales, infrastructure and marketing.
Q1 2019 results
Terra Tech reported revenues of $7.4 million in Q1 2019, a marginal decline from $8.6 million for the same period last year. It is because of the imposition of higher taxes on cannabis sales in California by the tax authorities.
Derek said the company achieved significant progress in the restructuring and establishing the footprint in the California Market in Q1 2019. The company has successfully completed the construction of Oakland based Hegenberger cultivation facility. It is awaiting the state approval to begin operations and improve manufacture of IVXX wholesale premium cannabis brand in the state.
Terra Tech inaugurated Blum dispensary in California at San Leandro. The company has increased considerable medical foot print at this dispensary since its opening. It expects to maintain sales momentum at this facility throughout the year mainly because of the brand recognition and increased intake by adult users.
The team at Terra Tech is putting in considerable efforts to improve revenues through new sales initiatives. The company also plans to use the funds in strategic locations for enhanced returns.