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Looking good.
Edible Gardens being sold in Florida Walmart's could be a result of the distribution deal they signed in February with Sunshine Growers. They (Sunshine Growers) have supplied Walmart for 22 years via Walmart's "Locally Grown Program".
See articles below:
"“We’ve supplied to Walmart for 22 years and over those two decades we’ve seen nothing but a positive impact on our business,” said Shane Weaver, Sunshine Growers, a poinsettia supplier. “In fact, nearly 16 weeks per year Walmart business supports 65 of our full time employees.”
Walmart’s locally grown program continues to highlight local farmers and their products in stores through signage that makes it easy for customers to recognize. Signage includes official state-grown marks, indicating approval by the state’s agriculture department."
http://news.walmart.com/news-archive/2008/11/25/walmart-gives-consumers-opportunity-to-support-local-economies-through-locally-grown-program
----------
"Lakeland, Feb. 24, 2014 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC) subsidiary Edible Garden, a locally grown herb and produce cultivator, signed a distribution deal with Sunshine Growers out of Lakeland, Florida."
http://globenewswire.com/news-release/2014/02/24/612785/10069692/en/Terra-Tech-Subsidiary-Edible-Garden-Signs-Distribution-Deal-with-10-Acre-Florida-Based-Farm.html
----------
"From its initial service of a handful of Wal-Mart stores, Sunshine Growers now distributes plants to approximately 250 of its garden centers and SuperCenters in Florida and Georgia as well as to 250 Publix stores on a weekly basis.
This hefty figure is due in large part, says Roth, to the fact that Sunshine Growers is allowed to use Wal-Mart’s own distribution centers. This gives the company the ability to supply a number of stores while only traveling a fraction of the distance. Also, as Wal-Mart has developed into the most prominent retailer in the nation, Sunshine Growers has been able to acquire additional distribution points, including the Wal-Mart-affiliated Sam’s Club.
That growth has benefited Roth’s company. “As a result of increased sales, we have expanded our facilities and our management team,” he says.
What's more, by traveling to the various Wal-Mart stores, Sunshine Growers has secured other clients in proximity to its Wal-Mart customers. What we're trying to do is go to fewer stores and deliver more products at one time," Roth explains.
In this way, Sunshine Growers has grown remarkably. For example, just five years ago, the company was serving 40 Wal-Mart SuperCenters, and now it supplies 120 of them. In its first year of business, the company managed to earn a respectable $352,000 in sales, even with a small staff of eight. Now, Sunshine Growers has about 60 employees, has delivered over 1.5-million plants in the past year and has added Home Depot to its impressive client roster. In 2005, the company's revenues were $5 million, with up to 95 percent of its business coming from its high-profile customers."
http://www.sunshinegrowersinc.com/news.php
Which states?
You forgot about Category 2 Symptoms. There at the bottom.
From Health Canada's Web Site:
"To be authorized to possess marihuana for medical purposes under the Marihuana Medical Access Program, your symptoms and conditions must fall within either Category 1 OR Category 2 symptoms, as determined by your licensed medical practitioner (medical doctor):
Category 1 Symptoms
Any symptom treated within the context of compassionate end-of-life care,
OR
Symptoms related to specific medical conditions, namely:
Severe pain and/or persistent muscle spasms from multiple sclerosis
Severe pain and/or persistent muscle spasms from a spinal cord injury
Severe pain and/or persistent muscle spasms from a spinal cord disease
Severe pain, cachexia, anorexia, weight loss, and/or severe nausea from cancer
Severe pain, cachexia, anorexia, weight loss, and/or severe nausea from HIV/AIDS infection
Severe pain from severe forms of arthritis
Seizures from epilepsy
Category 2 Symptoms
A debilitating symptom that is associated with a medical condition or with the medical treatment of that condition, other than those described in Category 1."
http://www.hc-sc.gc.ca/dhp-mps/marihuana/how-comment/eligible-admissible-eng.php#a1
Excellent post!!!
Nice find.
"No applications have been submitted yet in Clark County or the City of Las Vegas, but that's expected to change soon. The last day to apply for a license in Clark County is April 22."
Entrepreneurs scramble to fill out medical marijuana applications
CREATED Apr. 4, 2014
Las Vegas, NV (KTNV) -- As medical marijuana sales move closer to becoming a reality in Southern Nevada, more questions keep coming up, and those trying to get into the industry are finding it's no easy task.
Financial data, background checks, secure locations and business plans are just a few of the things entrepreneurs need to jump into the seedling pot industry in Clark County, but most importantly, they need cold hard cash.
"We're looking at probably over $100,000 just to get through the licensure process and that doesn't guarantee we'll be successful in getting the application," said Patrice Sowers, a grow house applicant.
Only a handful of licenses will be awarded to potentially hundreds of applicants. They gathered at Main Street Station Friday to put their heads together and navigate the process with the help of some elected officials who made it possible in the first place.
"A lot of people are wanting to apply and I just want to encourage them and tell them that the end is in sight," Senator Tick Segerblom told Action News. "They're starting to realize you have to get a building, you have to get security, you have to figure out how you're going to transport money, if you're going to grow, how you'll grow. It's a good step but there's a lot of work ahead."
City Councilman Bob Coffin said even if people don't get picked the first time, there's a chance they'll have a shot in the future, and there are plenty of onlookers watching the guinea pigs of the first round to map out their road ahead.
"They want to see how it's started, and in the end, they'll be there for the second go around, because there will probably be one," Coffin said. "I think there will be a lot of demand."
No applications have been submitted yet in Clark County or the City of Las Vegas, but that's expected to change soon. The last day to apply for a license in Clark County is April 22.
http://www.jrn.com/ktnv/news/Entrepreneurs-scramble-to-fill-out-medical-marijuana-applications-254002341.html?lc=Tablet
Very good, very good indeed! Highbrow, Unaffected, & Cogent... Always! Bravo....
----New video interview at one of Terra Tech's green houses in New Jersey, with Evan Nison----
Terra Tech Hopes to Corner Marijuana Market
4-2-14
---New Press Release---
Terra Tech Forms New Wholly Owned Subsidiary MediPharm LLC To Compete For Nevada Medical Cannabis Permit
Las Vegas, April 2, 2014 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC) is pleased to announce the formation of MediPharm LLC. a wholly owned Nevada LLC which has been formed for the sole purpose of competing for medical cannabis permits in the state of Nevada. In addition to the formation of the subsidiary the company is currently building out all the necessary components to apply for medical cannabis cultivation, retail and production permits as well as forming their advisory board and selecting appropriate real estate within the counties parameters.
The business licensing and special use permit process for Unincorporated Clark County will be opening in the 3rd week of April. In addition if MediPharm is selected at a county level, applications will be presented to the state of Nevada for further review and approval. The Company anticipates that process to be concluded by early June and state level selections to be made in the fourth quarter 2014. While Unincorporated Clark County is first in establishing and implementing their process other counties within the state will be opening up in the near future. Terra Tech intends on applying in multiple jurisdictions.
"This is another step forward in developing our application to obtain a permit in Nevada. We are assembling a well rounded and experienced team to assist us in the process," explains Derek Peterson CEO of Terra Tech.
The company will continue to give updates throughout the application process.
http://finance.yahoo.com/news/terra-tech-forms-wholly-owned-211124175.html
Very interesting comment from Derek Peterson about his MMJ dispensary (Blum), in the new Benzinga article out today (04/02/14):
“[Blum] gives us an umbrella to do a lot of things privately in California, while sheltering the company, but positioning it to participate at arms length… While it [the medical marijuana permit] is not in the public company, it can be and will be in the future.”
---The full article is below---
From Wall Street To Green Street: Terra Tech CEO Derek Peterson
April 2, 2014
Terra Tech (OTC: TRTC), and its subsidiary GrowOp, were started with the intention to develop and manufacture growth tools for in-home cannabis cultivation for medical marijuana users, but has quickly grown into big-time player in the hydroponic growth space.
Terra Tech is currently only growing produce for retail sales, but CEO Derek Peterson told Benzinga that he is “happy to slow down growing thyme and oregano,” if the policy world tilts towards marijuana legalization.
TRTC has strategically placed Dutch System Hydroponic Farm infrastructure in key marijuana legalization battleground states.
Marijuana legalization is a big "if" in states like New Jersey, Florida and Indiana (where TRTC has investment millions in grow center development), but that does not bother Peterson. He reassured the company’s commitment to innovative agriculture, affirming that he “loves the produce side of the business. An acre of produce yields up $1.5 to $2 million with 18 percent EBITDA margin.”
Though Peterson is content with the produce side of the business, he added that he is ready for states like New Jersey to go from “0 to 100 MPH” in regards to marijuana legalization. Peterson called New Jersey a “sleeping giant,” noting that Jersey’s legislative bodies are “extremely, extremely supportive” of marijuana bills, but while Governor Chris Christie is in office, there is not much hope for progress.
Even though Christie has spoken out against the War on Drugs, he has done everything in his power to restrict New Jersey’s current medical marijuana law, and has vetoed all marijuana legislation that has come across his desk. Though this is currently a setback for the cannabis industry, Peterson recognizes that “eventually [Christie] will be gone, and [New Jersey] will still have a supportive legislative body.”
Blum
Peterson, formerly a Senior Vice President at Morgan Stanley, left Wall Street for the marijuana industry, seeing a huge financial opportunity in medical marijuana. When asked why, he spoke on the financial upside to legal cannabis, stating “the average Starbucks is doing $200 to $300 profit per square foot, while medical marijuana dispensaries are doing anywhere from $1,000 to $4,000 per square foot.”
In 2010, Peterson privately opened Blum, a medical marijuana dispensary in Oakland, California. It was opened privately because Peterson did not feel that opening it within the company was worth the risk exposure to shareholders, but it has proven to be quite the beneficial tool in helping to grow TRTC.
“[Blum] gives us an umbrella to do a lot of things privately in California, while sheltering the company, but positioning it to participate at arms length… While it [the medical marijuana permit] is not in the public company, it can be and will be in the future.”
Raising Capital
Since the emergence of the cannabis industry, an obstacle many “green” companies have faced is funding. Due to the fact that any marijuana-oriented businesses are illegal on a federal level, institutional investors were initially hesitant to fund ambitious 'cannabusiness'-people.
Peterson says that he has seen a large paradigm shift in the last year, and that capital pools have opened up to marijuana businesses.
“Groups like Arcview (a venture capital firm) are looking for seed stage or development stage companies,” which is large step forward from just two or three years ago.
Peterson mentioned that coming from Wall Street, it was not as difficult for him to do a private round of fundraising to get the $1.2 million TRTC needed to get off the ground, but that was due to his established contacts.
When it comes to fundraising in the cannabis space, "it has gotten a lot easier."
*This is part one of a two-part interview with Terra Tech Corp CEO Derek Peterson. Check back soon to learn about TRTC's new research facility and the company's future.*
http://m.benzinga.com/article/4437468?utm_referrer=https%3A%2F%2Fwww.google.com%2F
Here's a fun little game.
---Let's play "Six Degrees of Separation"---
From Derek Peterson, the CEO of Terra Tech to Steven Wynn, CEO of Wynn Las Vegas and probably one of the most powerful figures in the State of Nevada.
Ready, here we go....
Derek Peterson, CEO of Terra Tech:
http://www.terratechcorp.com/management.html
Michael Nahass, Director at Terra Tech:
http://www.terratechcorp.com/bod.html
&
http://www.corporationwiki.com/Nevada/Las-Vegas/michael-nahass/136909779.aspx
Gary Abraham, worked at Morgan Stanley (Las Vegas, NV) with Michael Nahass. He then worked directly for Nevada's Secretary of State Ross Miller as Securities Administrator from 2007 - 2009:
http://www.corporationwiki.com/Nevada/Las-Vegas/gary-abraham/57145312.aspx
&
http://www.reviewjournal.com/business/former-top-performing-broker-becomes-head-cop-state-stock-beat
Ross Miller, Nevada's Secretary of State:
http://nvsos.gov/index.aspx?page=39
&
http://en.wikipedia.org/wiki/Ross_Miller
Bob Miller, Nevada's longest-serving governor (1989 - 1999) and father of Ross Miller, the current and youngest Secretary of State in the history of Nevada. Bob Miller presently serves on the board of directors of Wynn Resorts:
http://en.wikipedia.org/wiki/Bob_Miller_(Nevada_governor))
&
http://phx.corporate-ir.net/phoenix.zhtml?c=132059&p=irol-govBio&ID=85499
Steven Wynn, Chairman and CEO of Wynn Resorts, the third largest employer in the state of Nevada:
http://en.wikipedia.org/wiki/Steve_Wynn_(developer)
&
http://www.nevadaworkforce.com/admin/uploadedPublications/2545_State_of_Nevada.xls
..................
I wonder why Michael Nahass was awarded (according to Derek Peterson) 2,500,000 common shares of TRTC on 3/13/14? Coincidentally, the day before the Administrator of the Nevada State Health Division, Richard Whitley, adopted the proposed medical marijuana regulations (3/14/14). Also, Terra Tech incorporated its third subsidiary (MediPharm) the following week (3/19/14), in Nevada.
Link to Form 4 for Michael Nahass gifted shares of 2,500,000 on 3/13/14:
http://www.secform4.com/filings/1451512/000147793214001088.htm
Link to article "Nevada Administrator OKs Medical Pot Regulations":
http://www.8newsnow.com/story/24979188/nevada-administrator-oks-medical-marijuana-regulations
Link to most recent 10-K (on page 11) where it states a new subsidiary called "MediPharm" was formed in Nevada on March 19, 2014:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9892196
Link verifying the formation of MediPharm:
http://www.bizapedia.com/nv/MEDIPHARM-LLC.html
..................
The full article:
Planning on pot: California company Terra Tech setting up infrastructure in anticipation of legalization
By Andrew George,
March 31, 2014 at 3:00 AM
Derek Peterson may be the CEO of a California-based urban agriculture business, but he's betting big on New Jersey.
His company, Terra Tech, currently operates greenhouses in both Belvidere and Lincoln Park and focuses on local farming through innovative practices.
At the moment, produce is king for Peterson and his company. In two to three years, however, he's hoping that focus shifts — to cannabis.
Go ahead and cue the "Garden State" pun now.
For Terra Tech, the infrastructure is already in place at his New Jersey facilities to begin cultivating marijuana. Entering the New Jersey market last April, Peterson invested in the facilities believing that at some point, the state's attitudes toward marijuana legalization would warm — and his company would be prepared to deliver.
"Our national business model is that we need to build out an infrastructure based on the assumption that at some point … we're going to be able to grow this stuff on an industrial scale," Peterson said.
Terra Tech is either exploring its options or has already set up shop in other states, such as Indiana, Nevada and Florida. Add New Jersey to that mix and there's a common theme: none have legalized pot for recreational usage.
So why not head to Colorado or Washington?
"We tend to look at markets that are developing rather than in a developed market," Peterson says.
Peterson believes that New Jersey is headed toward marijuana legalization. It might not be overnight, but eventually the state will get there.
And if one lawmaker in Trenton has anything to say about it, Peterson might not have to wait that long.
As was anticipated, state Sen. Nicholas Scutari (D-Union) announced last week that he had introduced a bill that would look to legalize, regulate and subsequently tax marijuana in New Jersey.
Besides saving more than $100 million in enforcing marijuana laws, which Scutari is sensitive to with his background as a Union County prosecutor, he claims the move would create jobs and provide much-needed tax revenue.
"Colorado has successfully implemented its law, creating jobs and generating tax revenue far beyond the state's expectations," Scutari said. "Regulating the sale and consumption of marijuana in New Jersey will not only benefit the state financially but will mean a safer and more responsible way of treating this drug and a more humane way of treating our residents."
Unfortunately for Terra Tech, Gov. Chris Christie is also taking an interest in Colorado, in a very different way.
"We're not going to have recreational pot in New Jersey, not at least as long as I'm governor," Christie said last August following U.S. Attorney General Eric Holder's announcement that he would not challenge Colorado and Washington's voter-approved legalizations, a move Christie called a "mistake."
It's a position Christie has stood by, even as recently as last week on his monthly "Ask the Governor" radio program on Townsquare Media, when he reiterated that legalization wouldn't happen under his watch.
But Peterson wasn't naïve about coming to New Jersey. He knows it won't happen under Christie, but that's why he's in it for the long haul. The rest of the Legislature, he says, is "very, very supportive."
Evan Nison, director for Terra Tech's Northeast cannabis division, says he has been working closely with legislators in Trenton and is confident that a change in the governor's office will result in statewide legalization.
In the meantime, one way legalization proponents might be able to appeal to Christie is through the potential for competition with New York.
Nison says it's "hard to say" right now which state will make the first move forward when it comes to legalizing pot, but New Jersey is the only one of the two with any medical marijuana laws on the books.
The infrastructure and the jobs that Scutari touts in his bill could be lost if New York were to beat New Jersey to the punch, Peterson says.
Right now, Terra Tech is committed to New Jersey, but if the industry were to open up on the other side of the Hudson, Peterson says he'd consider setting up shop there.
"The real importance for New Jersey is first-mover advantage over New York," Peterson said. "You've got to get a head start over New York."
http://www.njbiz.com/apps/pbcs.dll/article?AID=/20140331/NJBIZ01/303289998/Planning-on-pot:-California-company-Terra-Tech-setting-up-infrastructure-in-anticipation-of-legalization&template=mobileart
In class, I'll post in a little.
Terra Tech is finally off the Reg SHO Threshold List:
http://www.nasdaqtrader.com/trader.aspx?id=regshothreshold
Terra Tech now has 3 subsidiaries:
GrowOp, Edible Garden, & MediPharm (formed on March 19, 2014)
I guess we'll be hearing news about this new company soon.
"MediPharm, LLC, a Nevada limited liability company, formed on March 19, 2014"
From page 11 of most recent 10-K (03/31/13)
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9892196
Another link for MEDIPHARM, LLC:
https://www.nvsilverflume.gov/businessSearch
Type in company name (MEDIPHARM, LLC) and select the only active one.
New article:
Planning on pot: California company Terra Tech setting up infrastructure in anticipation of legalization
Steve Vande Vrede, a director of Terra Tech and Edible Garden, talks inside a hydroponic basil greenhouse at Edible Garden in Belvidere. - (PHOTO BY AARON HOUSTON)
By Andrew George
March 31, 2014 at 3:00 AM
Derek Peterson may be the CEO of a California-based urban agriculture business, but he's betting big on New Jersey.
His company, Terra Tech, currently operates greenhouses in both Belvidere and Lincoln Park and focuses on local farming through innovative practices.
At the moment, produce is king for Peterson and his company. In two to three years, however, he's hoping that focus shifts — to cannabis.
--Requires a membership to have access to full article--
http://www.njbiz.com/article/20140331/NJBIZ01/303289998/Planning-on-pot:-California-company-Terra-Tech-setting-up-infrastructure-in-anticipation-of-legalization
This is all I could find on MediPharm:
Company Name: Medipharm, LLC
Status: Active
Filing Date: 03/19/2014
Entity Type: Domestic Limited-Liability Company
File Number: E0147362014-8
Filing State: Nevada (NV)
Registered Agent: State Agent And Transfer Syndicate, Inc.
Registered Agent Address: 112 North Curry Street, Carson City, NV 89703-4934
My ipad won't let me post on 420I.
"Having completed the majority of our new facility in 2013, we expect produce sales to increase significantly in 2014 as compared with 2013"
Quote from most recent 10-K, on page 19 (03/31/14)
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9892196
Terra Tech now has 3 subsidiaries:
GrowOp, Edible Garden, & MediPharm (formed on March 19, 2014)
I guess we'll be hearing news about this new company soon.
"MediPharm, LLC, a Nevada limited liability company, formed on March 19, 2014"
From page 11 of most recent 10-K (03/31/13)
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9892196
Great find!!!
New letter to the Editor by Derek Peterson.
POT PITCH
Mar 30, 2014 12:01 am
The state Assembly should be commended for adding the Compassionate Care Act to its proposed budget ("Medical marijuana puffing into Assembly budget," CrainsNewYork.com). There are many seriously ill patients, including children with epilepsy, multiple sclerosis and other physically debilitating conditions, in grave need of medical marijuana.
Running a food-grade agricultural company with significant interest in the regulated marijuana industry, we have already begun creating the framework for a responsible New York market. We currently grow pesticide-free produce and would love to help provide safe access to medical-quality cannabis. We hope the Legislature includes medical marijuana in the final budget to bring this much-needed change, and industry, to New York.
—Derek Peterson
CEO, Terra Tech
Irvine, Calif.
http://www.crainsnewyork.com/article/20140330/OPINION/303309993/tear-down-this-law
Nevada gives final OK to medical marijuana dispensary rules
March 28, 2014 - 11:19am
CARSON CITY — State Sen. Tick Segerblom said his goal is to have one medical marijuana dispensary operating in Nevada by the end of the year following the final adoption Friday of regulations establishing the state rules for the facilities to operate.
Now that the state regulations mapping out how the program will be implemented have been approved by the Legislative Commission, it is time for local governments to “get off their butts” and adopt their own rules for the dispensaries to operate, he said.
The regulations were adopted without any comments or questions from lawmakers serving on the commission or the public.
“A lot of local jurisdictions said they wanted to wait until the state regulations were adopted,” Segerblom said. “Well, now they are adopted. We’ve waited 14 years. It’s time to get moving.”
Segerblom, D-Las Vegas, who authored the bill in the 2013 session to establish the medical marijuana dispensary program, said Clark County is the only entity so far that is moving forward quickly to establish local rules for the businesses to operate.
Now that the state regulations are adopted, the business of accepting applications from those interested in participating in the program will move forward.
At the state Board of Health hearing earlier this month where the regulations saw initial approval, attendees were told there will be a 45-day notice announcing the date that applications will be accepted.
Once the application period opens, there will only be a 10-day window for accepting them. After the application period closes, the state must make a decision on each application within 90 days of receiving it.
But even before a dispensary can open, a state lab needs to be ready to test the marijuana.
Before that, the plant needs to be cultivated.
And to avoid having to import seeds from other states to begin the growing process, dispensary owners may buy specific strains from current patients in the state, the law stipulates.
The adopted regulations were drafted by the state Division of Public and Behavioral Health and will take effect April 1.
The regulations were modified at least 70 times since the bill’s approval — from security systems to setbacks from neighborhoods to ranking and processing applications.
Marla McDade Williams, deputy administrator of the division, said the agency is still in the process of hiring the staff needed to move forward with the application process.
The goal is to start accepting applications in May or June, but no firm date has been set yet, she said.
“Training is very important,” Williams said. “We have to make sure staff is using very systematic tools in ranking the applications. We don’t want to get caught up in subjective decision-making.”
The agency has estimated that about 425 applications for all of the types of services to be provided under the law, including growing facilities and dispensaries, will be received for processing.
The Legislature in 2013 overwhelmingly approved Assembly Bill 374 authorizing 66 dispensaries to operate in the Silver State, 40 of them in Clark County.
Voters approved a constitutional amendment providing for medical marijuana in 2000, and much of the legislative support for the bill came from lawmakers who said it was their legal responsibility to make the product available to patients.
The current system requires patients to grow their own or get it from caregivers who grow it and donate it to patients. The reality is many buy the drug from illegal suppliers.
Segerblom commended Williams and the division staff for the getting the regulation process completed so efficiently.
http://www.reviewjournal.com/news/nevada-gives-final-ok-medical-marijuana-dispensary-rules
---------Terra Tech Open House, Official Invite---------
https://www.facebook.com/terratechcorp/photos/a.284915881559731.90316.284907041560615/714987998552515/?type=1&theater
The Mayor and various State Officials, sounds like a pretty big deal!!!
-----Terra Tech Open House, Official Invite-----
https://www.facebook.com/terratechcorp/photos/a.284915881559731.90316.284907041560615/714987998552515/?type=1&theater
LmAo!!!
$TRTC$
Great new Seeking Alpha article:
Mar. 26, 2014 5:14 PM ET
Why Terra Tech Is Well-Positioned For Coming Explosive Demand
For those investors willing to deploy a few percentage points of a total portfolio to an industry that Minyanville CEO Todd Harrison recently speculated will be "the single best investment idea for the next ten years", should seriously consider taking a stake in a few of the top-tier stocks in the cannabis sector.
Though Harrison, the former-Morgan Stanley executive and Emmy Award winner, isn't quite going out on the proverbial limb with his Yahoo interview prediction of Feb. 27, he does, however, reflect the rabidly euphoric sentiment of many investors who've recently bid-up some cannabis stocks to outlandish valuations, predicated on the notion of around-the-corner and supporting revenue streams.
But, unfortunately, of the 25-plus, or so, cannabis stocks listed, Terra Tech Corporation (OTCQB:TRTC) stands out as one of the handful of credible plays in an industry riddled with bogus business models to compliment an infestation of unprofessional, inexperienced and opportunistic characters.
Though TRTC's recent IPO does not include profitability, it is, however, a play that appears to come with competent management, a textbook business plan and a starved market in which to expand rapidly for some years before cannabis becomes truly commoditized.
Why TRTC's Business Model is So Compelling
TRTC develops and manufactures state-of-the-art growhouse equipment to amateur and professional growers. In alliance with hydroponic farmers and its own grow facility, the company's Edible Garden produce is sold to supermarket chains Shoprite (OTC:SRHGF), Food Emporium, Demoulas and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, and Pennsylvania.
Though the company's initial and strategic focus is to promote and sell its Edible Garden produce, along with supplying equipment, grow technologies and know-how to a retail market of private growers, it will be TRTC's forged partnerships with commercial produce farmers (who presently supply much of the company's Edible Garden brand) that will ultimately provide the unrealized and potentially explosive value underlying this enterprise.
Outside of its flagship farm in the Northeast, TRTC's is meticulously building-out a readiness of the company's infrastructure of Dutch System, hydroponic farms throughout the United States, which will then ultimately serve a much more lucrative $100 billion per annum (estimated) American market for cannabis products: the real goal of TRTC's business model.
Today, the company has secured agreements with hydroponically-grown produce farmers strategically-located in New Jersey, Indiana and Florida. Terra Tech CEO, Derek Peterson, told Bloomberg's Pimm Fox:
We feel the future of farming, especially in cannabis, is going to be done inside of commercial-scale, Dutch hydroponic-style greenhouses, using energy from Mother Nature, or the sun, in combination with other technologies.
We're taking the opportunity to build the infrastructure now, [then], ultimately down the line, we'll compliment that with, hopefully, cannabis and industrial hemp.
Since its inception of 2010, TRTC's fingers can now be found in many pies (now to include the production of botanical extracts), but for illustrative purposes, the recent partnership with Florida-based Sunshine Growers will give investor a sense of the potential revenue explosion from the U.S. future super cash crop, cannabis.
On Feb. 24, TRTC issued a news release of its distribution agreement with Sunshine Growers of Lakeland, Florida. Under the agreement, Sunshine will cultivate the full line of hydroponically-grown Edible Garden produce for distribution to Tampla, Orlando and South Florida. Craig Roth, President of Sunshine Growers, stated in the release:
Sunshine has managed to remain competitive in the marketplace over the years due to our willingness to adapt to consumers demand. We feel uniquely qualified to fulfill that demand [via our 10-acre facility] based on our sustainable and eco-friendly cultivation methods.
Prepare For Florida Supreme Court Ruling of Apr. 1
With Sunshine's 10-acre grow facility and the company's president willingness "to adapt" to consumer demand, the upcoming Florida state supreme court ruling on whether a state-wide ballot will be issued in November to amend the Florida Constitution and allow the cultivation of cannabis for medicinal use is of utmost importance to investors of TRTC.
The Florida Supreme Court is scheduled to announce its decision on April 1. The Florida Division of Elections has confirmed that proponents of physician-supervised prescriptions of cannabis have submitted enough signatures to qualify for the November ballot.
A favorable decision on April 1 will most likely result in a landslide of support in November for an amendment to the Florida Constitution to legalize cannabis use for medicinal purposes. According to nationwide, pro-cannabis organization, Norml, Quinnipiac University survey data show that:
82% of Florida voters support reforming state law to allow for the medicinal use of marijuana, only 16% were opposed.
TRTC's Potential Revenue From Sunshine Growers
A favorable ruling by the Florida Supreme Court suggests that Sunshine's grow facility now has a capacity to yield approximately 70,515 lbs. (35.52 tons) of cannabis, instead of tons of low-priced produce.
That estimate of 35.52 tons of production is derived from calculations published in a white paper authored by Jonathan Caulkins of Carnegie Mellon University, entitled, "Estimating Adequate Licensed Square Footage for Production," in which Caulkins surmises that professional growers can expect a yield of 500 grams per square meter of plant space, per crop, of cannabis from a grow facility.
Using Caulkins' parameters, calculating the production capability of cannabis from the 10-acre Sunshine facility is, as follows:
500 grams per sq./meter / 453 grams per lb. = 1.1 lbs. per sq./meter
1.1 lbs / ~9 sq. ft. = 0.1126 lbs. per sq./ft.
10 acres = 435,000 sq./ft.
435,000 sq./ft. x 0.1126 lbs./ft. = 53,421 lbs.
53,421 lbs. x 0.66 (net plant space) = 35,257 lbs.
35,257 lbs. x 2 (crops per year) = 70,515 lbs. (35.25 tons)
And at "50% wholesale" price from the market price of "$5,000 to "$8,000 per pound, retail," according to Terra Tech's Derek Peterson, the Sunshine facility could approach $229.1 million of potential revenue during the first year of production, which is quite bizarre.
Even at California's price of "20% less," than prices quoted elsewhere in the U.S., according to Peterson, the Sunshine facility could still generate more than $183.3 million of annual revenue.
TRTC's cut would be in the form of a marketing and distribution percentage, which, in the case of the Gro-Rite deal, is 10% of total sales. Using that marketing percentage estimate for the Sunshine deal, TRTC's cut from a full-facility production of cannabis at Sunshine equates to approximately $18.3 to $23 million of revenue per annum.
TRTC's Revenue Potential From Its N. J. and Indiana Facilities
To include the TRTC's other facilities in New Jersey and Indiana, which contain five acres and 30 acres, respectively, the total revenue potential from the three facilities equates to $92.9 million per annum for the company.
Mitigating factors of this calculation are numerous and speculative, such as, for example, the effect on revenue from competition, ultimate level of wholesale prices, actual percentages earned from the three facilities, contracted quantities agreed upon by the the parties involved, et cetera.
As far as wholesale price levels in the near future, Peterson told Bloomberg that he didn't;
feel the industry and the environment is geared-up to handle the type of volume that could exist on full, mass legalization across the country.
Therefore, demand would remain high relative to supply. But for how long? Maybe long enough to illicit a buyout at a capitalization level much, much higher than today's $100 million?
Conclusion
Wild estimations of potential revenue and valuations have turned the cannabis market into quite a circus.
In the case of TRTC, an estimate of $92.9 million of revenue, on top of assumed sky-high gross margins appears to be a reasonable assumption at first glance, but the risks endemic to the cannabis industry and TRTC are still are quite volatile. News about the industry comes out nearly weekly, with a weigh-in by big tobacco sure to be on the horizon at some point.
But, in support of a positive thesis of this stock, TRTC has made quite a few correct moves to position itself as a player in the trend to legalize cannabis throughout the U.S., as more states jump on the wagon to lift prohibition in some form of this magical substance. That's obviously apparent to many investors, already.
Therefore, the purpose of this article is to offer a sense of the possibilities of a company like TRTC, which has real facilities and skilled management in place to make some money in an industry poised to become the nation's fastest growing.
We believe investors should perform due diligence work on TRTC, as it could well be worth the effort for a long-term stake in the cannabis industry.
We will be following up on TRTC after the scheduled April 1 Florida Supreme Court decision regarding the referendum initiative scheduled to be included on the November ballot.
Editor's Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
http://seekingalpha.com/article/2111323-why-terra-tech-is-well-positioned-for-coming-explosive-demand
Fantastic!!! Great read...
Not sure if posted yet.
Bank of America Announces Settlements With Federal Housing Finance Agency (FHFA) and New York Attorney General
CHARLOTTE, N.C., Mar 26, 2014 (BUSINESS WIRE) -- Bank of America today announced it reached a settlement with the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae and Freddie Mac to resolve all of FHFA’s residential mortgage-backed securities (RMBS) litigation with Bank of America, as well as other legacy contract claims.
The FHFA settlement resolves four lawsuits FHFA filed against Bank of America, Countrywide, and Merrill Lynch entities beginning in September 2011, alleging they falsely represented that the underlying mortgage loans complied with certain standards. Approximately $57.5 billion (in purchase cost) of private-label RMBS purchased by Fannie Mae and Freddie Mac are covered by the settlement.
Under terms of the settlement, Bank of America will make cash payments totaling approximately $6.3 billion to Fannie Mae and Freddie Mac. In addition, Bank of America will purchase certain RMBS at fair market value (approximately $3.2 billion). In return, FHFA’s pending lawsuits will be dismissed with prejudice and Bank of America and its affiliates will be released from all securities law and fraud claims, as well as certain other claims related to the private-label RMBS in dispute.
http://www.marketwatch.com/story/bank-of-america-announces-settlements-with-federal-housing-finance-agency-fhfa-and-new-york-attorney-general-2014-03-26?reflink=MW_news_stmp
"Even though there are hangups with opening a pot-farming greenhouse in Nevada, the end goal for Terra Tech is eventually to end up with all of its facilities as sustainable greenhouses. Peterson explained that at the moment they are working on getting two retail permits and two cultivation permits from the state."
http://www.alternet.org/drugs/meet-company-can-start-growing-marijuana-greenhouses-across-us-48-hours-notice?page=0%2C0
Full article below:
Meet the Company That Can Start Growing Marijuana in Greenhouses Across the US on 48 Hours Notice
March 25, 2014
State by state, the nation is beginning to chip away at marijuana prohibition. Especially since Colorado and Washington legalized the herb for recreational purposes last year, whispers of legalization and decriminalization are spreading like wildfire. But cultivation of the plant is still federally illegal, and often as states legalize either medically or recreationally, they find themselves in short supply.
A former Wall Street banker named Derek Peterson is now CEO of a company that could eventually turn the legal medicinal and recreational marijuana shortage into a myth. The company is called Terra Tech Corp, and since its inception in 2010, Peterson has made it his goal to set up farming facilities in various states to grow legal leafy greens like basil and thyme, and gearing up to switch over to cannabis. As soon as each state legalizes, Terra Tech plans to switch to cannabis production, coming out ahead of the curve.
A sustainable, hydroponic farming company, Terra Tech became the first publicly traded company to apply for a license to grow cannabis. Everyone on staff is fully trained to cultivate weed so that as soon as states legalize they can easily shift their facilities over, staff and greenhouses intact. In an effort to stay environmentally sustainable, the company plans to implement far more outdoor greenhouses that rely on natural sunlight than indoor farming facilities that rely on elecricity. Terra Tech’s subsidiary, Edible Garden, has already started using Terra Tech’s LED lighting to cultivate produce while reducing its carbon footprint.
Based in both New Jersey and California, Terra Tech is working in tandem with Edible Garden and GrowOp Technology, which Peterson founded to provide equipment for medical marijuana growers. What started as a company that manufactured mobile growing facilities in Northern California has now expanded to facilities around the country, including Florida, New Jersey and Indiana.
"We have about 7 acres that we’re working with in New Jersey, we’ve got 10 acres in Florida, we’ve got 30 acres available to us in Indianapolis that we’re growing out of as well,” Peterson said. “We’re looking for facilities right now in California. We’re currently looking at Central California, it’s one of our focuses just because of the climate there."
Peterson said expanding on the marijuana market was always part of the plan for Terra Tech, but he did not want to jump into it immediately in 2010. So instead, he started out developing and selling hydroponic equipment like filtration, nutrients and HID and LED light systems.
“I didn’t want to get involved directly with the plant at the time because essentially I don’t think I could have sold that to my wife,” Peterson said, laughing. “I thought, 'Why don’t we start making and manufacturing some of the equipment that cannabis cultivators use to grow?'”
Peterson owns a dispensary in Oakland, Calif. called Blüm, and prides himself on making sure patients are getting high-quality pot from a reliable place. This alone was a major reason for the development of Terra Tech.
“Who do you want growing your cannabis?” Peterson said. He says knowing and trusting the source is essential.
When it comes to growing marijuana, even if your intentions are good, it is still a bit of a challenge warming people up to the idea, he explained. That was when the farming of other crops came into play.
“We didn’t want to do it right away, so we started to think of a way that we could position ourselves to cultivate cannabis from a nationwide standpoint,” Peterson said. “Well, how can we do that without doing it immediately? And how can we justify spending the money to build the infrastructure around the country?”
Terra Tech joined forces with the wholesale fruits and vegetables company East Coast Farms and eventually merged with Edible Garden. Peterson said this allowd them to expand in terms of growing other crops, and work toward cannabis cultivation in places where recreational marijuana is already on the path to legalization.
“It allowed us to build a footprint of these high-tech, hydroponic, fully automated greenhouses around the country,” Peterson said. “And positioning ourselves for down the line when we feel comfortable enough to cultivate cannabis. We’ve got the infrastructure already there.”
The latest project for Terra Tech is in Nevada. Now that the state recently altered its medical cannabis laws, dispensaries are now legal and under Bill 374, Nevada will now allow 66 dispensaries and an unspecified amount of facilities, labs and kitchens. Terra Tech is a candidate to build a large-scale pot growing facility in the state. After putting together a report and arguing their case, they have a few more months of waiting before any decisions are made.
“We recently announced that the public company is going to compete for medical cannabis cultivation and retail permits in Nevada, as well as look for other direct opportunities in and around the country.”
Peterson said one of the trickiest parts of establishing greenhouses is waiting for permits. Depending on state, county and city input, permitting can take weeks to months to go through. Peterson said that while Clark County, Nevada—where Las Vegas is located— is relatively cooperative thus far, people in other parts of Nevada are trying to keep marijuana-growing facilities out of their communities through moratoriums and zoning laws.
Peterson said that Clark County is their number-one priority in Nevada at the moment because it is home to 2 million residents and 40 to 44 million people come through Vegas every year. Although, even if they are allowed to build, they will not be able to put any facilities too close to the Las Vegas strip.
“We’re competing, we’re putting together our plan,” Peterson said. “We’re forming a corporation, we’re looking at real estate, we’re close to locking down some real estate and put together the whole business model and business plan around it.”
While Terra Tech prides itself on its push for environmental sustainability, the company will not be able to set up a greenhouse in Nevada right away even if it gets the permits it needs.
“[Nevada is not] allowing for greenhouses right now because they don’t like the fact that they’re clear and you can see through them, and they feel like there’s safety issues associated with that," he said. "And it’s a little frustrating for us because it’s the most environmentally sustainable way to cultivate. But right now we have to grow indoors if we earn the permits, so that means utilizing supplemental lighting, high-intensity lighting, artificial lighting, air conditioning.”
Even though there are hangups with opening a pot-farming greenhouse in Nevada, the end goal for Terra Tech is eventually to end up with all of its facilities as sustainable greenhouses. Peterson explained that at the moment they are working on getting two retail permits and two cultivation permits from the state.
Terra Tech is also looking for existing opportunities in Denver, Colorado, and has its eye on New York. Peterson thinks it won’t be long before they start growing there as well.
Peterson is optimistic about the future of his company and the slow but steady legalization of marijuana across the country. Terra Tech is already expanding more rapidly than expected, growing from 300 retailers last year to about 600 this year. Cultivators and other team members are trained and ready to get to work.
“We have it already, it’s just planting a different seed,” Peterson said. “We could have cannabis growing anywhere in these facilities within 48 hours.”
Can't reply to PM, have a free account. I'm not big into OTC stocks but I think Terra Tech is a special case.
$TRTC$
---Here's a thought---
Terra Tech has been on the "Reg Sho List" since March 4, 2014:
http://www.otcmarkets.com/stock/TRTC/short-sales
http://www.nasdaqtrader.com/dynamic/symdir/regsho/nasdaqth20140324.txt
"III. Regulation SHO
Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:
Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
- Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security. This "locate" must be made and documented prior to effecting the short sale.
- "Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days. Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker) may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
- Temporarily suspending Commission and SRO short sale price tests in a group of securities to evaluate the overall effectiveness and necessity of such restrictions. The Commission will study the impact of relaxing the price tests for a period of one year.
- Creating uniform order marking requirements for sales of all equity securities. This means that orders you place with your broker-dealer must be marked "long," "short," or "shortexempt."
IV. Threshold Securities
1. What is a Threshold Security?
Threshold securities are equity securities that have an aggregate fail to deliver position for:
- five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));
- totaling 10,000 shares or more; and
- equal to at least 0.5% of the issuer's total shares outstanding.
Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies"). Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets, cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine."
For more info go to: https://www.sec.gov/spotlight/keyregshoissues.htm
&
http://en.wikipedia.org/wiki/Naked_short_selling
The following are very instructive:
Demand for pot may lead to even more dispensaries in Vegas
KSNV
LAS VEGAS (KSNV & MyNews3) -- Dozens of medical marijuana businesses will soon set up shop in Clark County, all vying for a share of the potential marijuana profits.
We could see more dispensaries than expected if the state struggles to keep up with the demand for cannabis.
Last Wednesday, both the county and city moved forward with plans to make pot shops legal. Advocates say Nevada’s medical marijuana market is expected to explode along with the number of dispensaries.
“Even though we just have 5,000 cards right now, that's going to escalate,” said Senator Tick Segerblom.
Segerblom says the number of people with cards in Colorado and Washington increased tenfold once medical marijuana became legal. In Nevada, the number of residents with cards could reach 50,000 within a year, says Segerblom.
That demand could lead to more dispensaries popping up around the valley.
"I just talked to someone and they said in Denver, the metropolitan area, they have 212 right now, and of course we are not that much smaller than Denver," Segerblom said.
http://www.nbcnews.com/id/54770518/
TRTC Has A Large Opportunity In Las Vegas
Mar 20, 2014 3:32 PM
According to this Las Vegas Sun article, Clark county (the county where Las Vegas is) just approved land use and licensing rules for commercial marijuana growing in there county. While this is interesting news for a number of players in the industry (OTCQB:PHO*, OTCQB:CAN*, OTCPK:ATTB*, FUL*, etc.) it is key for OTCQB:TRTC. Establishment of the regulations allows TRTC to move forward with a commercial cannabis growing facility in the area. As a matter of fact, since TRTC formed a Nevada team headed by connected Rebecca Gasca, I would be surprised if they didn't have some influence in writing them.
For those who may not be aware, Nevada dispensaries will be able to accept medical marijuana cards from other states and they are limiting how many suppliers will be approved. Furthermore, there are three potential licenses: one to grow, one to process and one to distribute with rules and hoops to jump through to get each one. It's basically set up to limit the market to a few large, well controlled facilities. So those like TRTC with ins are set up to succeed in what you got to think is going to be the largest medical marijuana market in the country, Las Vegas.
http://seekingalpha.com/instablog/379412-darren-mccammon/2772083-trtc-has-a-large-opportunity-in-las-vegas?source=kizur_seekingalpha
Primary sources folks.
Go $TRTC$