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Terra Tech upgrades facility to boost cannabis output, but its 3Q revenue takes a hit

The cannabis company recently entered into a non-binding letter of intent to merge with Golden Leaf Holdings
IVXX brand cannabis products
Terra Tech’s IVXX brand production is being relocated to an upgraded facility

Terra Tech Corp’s (OTCQX:TRTC) facility upgrades cut into revenue in its third-quarter results, but the cannabis-focused agriculture company sees budding production ahead.

The company reported a net loss of US$0.19 per share on revenue of US$7.1 million compared with a net loss of US$0.16 per share on revenue of US$10.1 million in the previous year’s third quarter.

Terra Tech credits the decrease to lower revenues from its IVXX brand as its production is being relocated to a new facility.

“We invested in our organic growth by working toward upgrading our IVXX production facilities to optimize efficiency and output at our wholesale business,” said CEO Derek Peterson in the company’s press release.

READ: Terra Tech invests $5 million in Hydrofarm Holdings Group

While the relocation will cut into revenue in the short-term, Terra Tech expects to see an increase in production at the upgraded facility, bolstering its distribution throughout the state of California.

The company operates through multiple subsidiary businesses, including IVXX Inc, Blüm, Edible Garden, and MediFarm. 

Terra Tech has entered into a non-binding letter of intent to merge with cannabis company Golden Leaf Holdings, paving its way into the Canadian market.

The California-based company recently made a US$5 million investment in hydroponics product manufacturer Hydrofarm Holdings Group Inc, taking an ownership stake in the company.

Its also making its way into the cannabis-infused beverage space via its recent partnership with beverage production company Valiente Group.

Shares of Terra Tech were down a little more than 1% to US$1.67 by Thursday’s closing 

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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