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You are most likely right.
I'm just thinking of EG's customer base. Lots of companies and most operate OTC drugstores inside. Seems like something to keep.
Hemp is federally legal. Eventually you should be able to grow hemp anywhere.
I don't know. I'd imagine TRTC missed the numbers this quarter, judging from the quick shift.
Damn shame. And I still believe it was primarily due to a F'd government response to a new industry at the federal and state levels.
The Senate will not pass anything to promote the 'general welfare' until their narrow agenda is forwarded or until the majority is tossed out.
Growing hemp/cannabis in a controlled environment is in their business model for engineered CBD products.
Since TRTC is the junior in this merger and since the ticker will change and since they will not be involved in the cannabis business - What is the value of a tick once the dog is dead?
Monday, October 28, 2019 9:00 AM
PHOENIX, AZ / ACCESSWIRE / October 28, 2019 / OneQor Pharmaceuticals, a fully integrated developer and supplier of proprietary, plant-derived products to the pharmaceutical, health, beauty, fitness, and wellness industries, today announced that an Open Label study of the impact of broad spectrum hemp (BSH), added to existing treatments for chronic pain, opioid cessation, premenstrual syndrome (PMS) and hot flashes has shown significant improvements in these conditions over several months of treatment. OneQor has filed patent applications with claims addressing each of these.
Dr. Vishal Khemlani, an anesthesiologist and pain medicine specialist, treated approximately 40 patients suffering from inadequate management of acute or chronic pain. Patients were treated with twice-daily BSH tincture added to their existing regimen. The quality, potency, and stability of the clinical supplies were assured by testing using validated analytical methods. The promising results from this study are statistically significant for the reduction of pain, stress, anxiety, improved sleep, and better overall quality of life. In addition, a number of patients were able to successfully withdraw from the use of opioids for pain management. Dose titration, selection of dose and dosing frequency were also part of the lead-in design for the clinical protocol.
"We are encouraged to swiftly move forward with additional studies to more fully define the best role of CBD and BSH in treating these conditions," commented Dr. Joseph Fortunak, Chair of the Science Committee at OneQor.
TRTC is going to merge as the junior. Why? because the pieces are worth more than the whole. Seems to me the new CEO builds one kind of company - a rocket ship and TRTC's assets is the fuel. I'd guess they might keep the CBD store and Edible Gardens. Maybe convert some locations to CBD.
Best of luck folks.
The stated plan's results will begin to be seen the 10q for the fourth quarter. That will be available in March 2020. Since I have answered this question before please write it down on a sticky note and put it on your monitor. Refer to it once a day.
May be why shorting has dropped off as of late.
We got lots of reporting happening soon. TRTC on the 7th, Aurora on the 11th, CGC on the 14th, Tilray and Cronos on the 12th. Should be interesting.
"...retail investors are slowly selling at a loss regardless of fundamentals."
And this is the case with most MJ stocks currently. The good news for TRTC is these things pass - unlike crippling debts CGC, Aurora and other are seeing. TRTC, Aurora, and CGC have never produced a profit.
TRTC recognized the problem 6 months ago and has begun a turn. The rest of the MJ companies, without major intervention, will see what Medmen just saw - massive drops and increased volatility. Even their patrons are getting nervous.
My choice is to let Derek's plan to increase revenues, increase margins, decrease reliance on financing expenses to the point of self financing and concentrate on smart growth that incorporates the previous three points.
Gee, TRTC down 3,34% on a bad day for the sector. I just checked Medmen and I don't see our dear friends over there as the stock drops 23.74%.
They are dropping because their net loss doubled. Sure glad TRTC is containing costs, getting rid of under performing people and locations, and focusing on revenues and margins.
Medmen down 23.74%
TGOD down 6.54%
Planet13 down 6.53%
Charlotte's web down 4.92%
CGC down 4.85%
Cron down 4.4%
Terrible management at the state and federal levels. My generation needs to step back from the plate and let the younger generations take a swing.
I hope you and your family are OK. Looks like the entire west coast is on fire. Has to be a worry.
Be Safe.
Who's screwing up the entire sector?
Who is failing to stop black marketing in pot?
Who is refusing to study the plant?
Who is taxing the industry at rates reserved for crime syndicates?
Who will not allow banking?
Who will not allow interstate commerce?
Who allows a hodgepodge of disjointed laws and regulations to strangle the infant industry?
No kiddo, the Governments at the state and federal levels are screwing up the industry and based on your posting on all MJ stocks that I can see you are obviously against MJ reform.
Who will now be ignored?
Just for laughs - Marijuana Found at North Dakota Nuclear Missile Facility
https://time.com/5708981/marijuana-north-dakota-nuclear-facility/
Senate Marijuana Hearing Highlights How Schedule I Status Blocks Research
https://www.marijuanamoment.net/watch-live-senate-committee-holds-hearing-on-marijuana-and-health/
Regulation and thriving black market burning up profits of California's legal weed business
Wonders of wonders - it's the government that is screwing up the MJ sector in the US -
https://www.cbsnews.com/news/marijuana-in-california-regulation-and-thriving-black-market-burning-up-profits-of-legal-weed-business-2019-10-23/
We just saw our largest gross profit. We are seeing COGS being reduced. By the end of the 4th quarter, which will be reported in March of 2020, we should see substantial SAG reductions, revenues at a 63 million run rate, further reduced COGS from our internal production. All of that is required if TRTC is to ever see profits.
Real profits will only come from legalization for marijuana companies and even then given the federal government's rollout of CBD it will be a while.
I'll be happy if COGS and SAGS are mostly covered by revenues and outside financing of expenses ends.
The third quarter and perhaps the fourth will still have costs associated with the build outs currently ongoing.
So if we get a 15 million quarter, COGS goes to 5 million and SAG to 10 - That would be fantastic. If they get within 2 million that would be great. If they keep it up we could see net profits next year.
So, we're getting great penetration with our flower there. We're getting great penetration with the oils that we're producing at the manufacturing facility and we're just starting to take down our first products out of our West Grand facility and we're having expanded footprint there as well.
Yes, across the board, we're getting great traction in the wholesale environment in California. We're getting great traction in the wholesale environment in the Nevada marketplace. Our partners NuLeaf, the cultivation facility, we're kicking out some unbelievable product there. There's a few great brands in the Nevada marketplace. There's a lot of mediocre cannabis at the end of the day, but our stuff coming out of the LED cultivation facilities is top notch.
So, not only are we launching that CBD Store in the Nevada marketplace, but the company is seeing a tremendous amount of opportunities, especially as they tie into our retail partnership on the Edible Garden division.
We just got two extra distribution facilities through Wal-Mart, for example. And so we've got a great relationship with a tremendous amount of retail doors, and we want to start showcasing some of the CBD products as well. And so we think there's an opportunity in the CBD around to get additional upside revenue and opportunities for the company as well.
we've got $10 million, $11 million in real estate equity on top of that. So the company again with the streamline operations, the EBITDA and cash flows been kicked off at retail level. The increased gross revenue that the company is going to be receiving by all these new assets coming online, plus the sale on non-core assets. So this is the leanest the company has ever been. And we've seen that by the increased gross margins and the reduction of the loss per share for this quarter.
But again, we're going to be in a position with the capital coming out of it. And so in addition to the cash we have on hand, the $21 million that we inked we think again we're going to be able to put $45 million to $55 million in cash in the bank. But that doesn't even count whatever we receive out of the hydro farm transaction.
Again, we put 5 into that and obviously that investment was made with the ideology and the intent of taking something far larger than 5 out of the back end of that. And so if that thing works in any way shape or form consistent with what the Greenlane IPO looks like, that should be a very accretive transaction for the company.
Yeah, that ties into what I just said. So we have one final tranche of the $40 million financing that we put together. Again, it was well over a year ago. Once that final tranche is done, we'll close that up and we don't see having to come back to the capital markets after that, unless there's some major acquisition that we think makes economic sense.
So we're going to be in a position regardless to have a tremendous amount of cash and liquidity at the company's disposal coming into the end of the year for future growth. And obviously, putting us in a position where we can kind of migrate out of the capital markets and not have to continue to issue shares, especially these depressed levels, where we think we're trading far below what our true book value is at the end of the day. And so we're looking at things both from a granular level, but also from a macro level as well.
The company anticipates out of the non-core assets that we hope to migrate out of getting somewhere between $45 million and $55 million, we’ve inked up about 21 million already.
Now, turning to the balance sheet, on June 30th, 2019, the cash balance was $1.92 million versus $7.19 million as of December 31st, 2018. The company had no short-term debt.
Our gross profit for the second quarter ended June 30, 2019 was approximately $4.9 million compared to gross profit of approximately $3.7 million for the second quarter ended June 30, 2018, an increase of approximately $1.2 million.
Dispensary year-over-year growth of $950,000 or 14% due to revenues from our new store in San Leandro as well as improvements of our store operational standards, enhanced product assortment, increase customer traffic and higher average sale amounts.
For the second quarter ended June 30, 2019, we generated revenues of $10.4 million compared to approximately $8.7 million for the second quarter ended June 30, 2018, an increase of approximately $1.6 million or 19%.
Terra Tech is a SOX Compliance company as of this year.
This is a very big deal.
For our pests, it does not mean they all wear the same socks.
And most importantly, this year, we passed SOX compliance, Sarbanes-Oxley, I don't know of any other MSO that's SOX compliance out there today.
So, in addition to that, streamlining operations and headcount to mitigate operational burn one of the reasons we've seen EBITDA performance is we've done a good job of mitigating a lot of our operational burn.
We've done a great job in streamlining operations internally as well and so we're very pleased with the progress that we've made in the first half of the year and we think the second half of the year, we're going to have a tremendous amount of more upside as far as that's concerned as well.
Achieving a $63.3 million revenue run rate sometime within Q4 2019, we’re run rating at well over $40 million at this juncture. So, we're on our way to that number and the onset of the additional cultivation plus Dyer and some of the other activities that we have coming online, plus increasing same-store sales, because we're putting a tremendous amount of effort into getting as much revenue and as much cash flow out of each one of our retail stores is absolutely possible. We're trending in the right direction on that number and we're excited about the progress that we've made year-to-date as far as revenue growth has been concerned as well.
Ceasing accessing the capital markets by the end of the first half of 2019 to fund CapEx and OpEx, we have one final tranche to take the $40 million financing we did well over a year ago. Once that tranche is done sometime in the next month or so, we have asset capital coming in $21 million coming in from the sale of two of the retail stores in the Nevada marketplace.
Management goal is somewhere between $45 million to $55 million and net proceeds coming from the sale of non-diluted asset -- non-dilutive assets or non-core assets, I should say.
We feel very comfortable with that target, not including whatever proceeds we receive out of the Hydrofarm sale depending on what kind of performance that has in the public marketplace.
So, coming into the end of the year, we should be in a phenomenal position as far as cash reserves are going because of the sale of non-core assets coupled with the liquidity coming out of that investment.
And that will really put us in a position to buy that revenue that we need to replace at the company's level, but have a tremendous amount of capital for growth, again, without having to go back and access those capital markets.
So, if I have something in the portfolio that's yielding are, let's say, $2 and I can sell it for $10, and I can go back and buy something for $7 that's yielding a $3 or $4. Those are the types of accretive transaction arbitrage opportunities that exist out there in the marketplace.
That's ultimately going to be one of the uses of that non-dilutive capital on top of maintaining a significant capital reserve, so that we can extend that ability to not have to continue to go back and forth to the capital markets to fund growth in operations.
Meaningfully EBITDA improvement, so we've made some significant EBITDA improvement already in the first half of the year, but with the cultivation coming online, extraction coming back online coupled with some additional retail presence with Dyer, et cetera and so forth. We think we're going to see even more significant EBITDA improvement.
So gross margins, we were trying to hit a number of 45%. We've made significant improvement in gross margins over the last couple of years. We were in very low double-digits, not too long ago, and now again we had a goal and objective to get to 45%. We blew that out of the water. We're already a little over 47%. So now we're pushing even harder to get north of 50%. So we're very happy with the progress that we've made there. We're achieved the goal that we promised our shareholder that we were intending to make already. And we're going to increase and hopefully improve that trend coming into Q3 and Q4 of 2019.
For those of you that don't know, Nevada, in general, issued another 60-plus retail permits. There's some litigation around those permits, but ultimately there's going to be a significant increase in retail stores over the next few years in the Nevada marketplace, which makes the wholesale activity out of the cultivation extraction even more attractive. So we're excited about the increased retail footprint opportunities that those would potentially afford to our manufacturing and cultivation arms in the Nevada marketplace as well.
Cultivation and extraction in the Reno, Washoe County area, full bore as well. We're now starting to see some upticks as we pull product down. We're getting better yields than expected out of our LED 30,000 square foot cultivation facility, and now we're starting to get some traction on the production of oils in the wholesale marketplace as well
Las Vegas, jumping over to Nevada for a little bit. We have that 4th Street building; we worked very diligently to get a cannabis permit at that location. The gaming corridor was pretty against it at the end of the day and so rather than fighting that behemoth, we decided to pivot a little bit, we're converting that retail location over to a CBD only store.
Blum San Leandro, that's the retail store, a little bit south of Oakland, a little bit north of San Jose. We opened that store, as most of you know, in January this year, selling only medical cannabis. The city was fast tracked adult use. They changed over, I want to say, it was in early May.
We began commencing adult use sales and we saw a nice hockey stick upwards in top line revenue, as well as store traffic, which was great. The city approved three retail facilities. However, our company is the first retail store open. We don't know when competition is coming to the marketplace there. But I don't think anybody is opening up anytime soon, which has given us a great first mover advantage in that vacuum just South of Oakland that we're able to occupy.
We've seen strong sales growth since the start of adult use and that revenue was a great driver to get where we were from increased revenue for this quarter. But again, we didn't even have a full quarter for San Leandro operations as adult use really kicked in the first part of May and it took a couple of weeks to ramp-up from there. Really excited about the addition for Q3, as sales continue to ramp-up, we also capture a full quarter of San Leandro's retail sales as well.
Let's jump down to Santa Ana for a moment. We have one operational dispensary down there. We have two additional retail permits, Dyer, obviously being the largest most focal footprint. This location is on a main frontage freeway. I think it's, personally, the best location in all of Southern California, a significant amount of parking. It's on a seven-acre parcel -- the building itself is 55,000 square feet; the retail facility is going to occupy about 5,000 square feet or so.
West Grand getting a little bit more granular, which is the cultivation we were just discussed. We're actually cultivating. And right now, that renovated facility, which we shut down for the majority of last year, featured an upgrade of power capacity, allows for more output and a larger vegetation room to support cultivation of a greater variety of cannabis strains.
all of Terra Tech operating California facilities except for the West Grand Avenue cultivation, which is the new cultivation that we're just opening up, which is still pending or issued provisional licenses for the state of California.
These licenses are valid for one year. They require a metric compliance. The issuances of these licenses ensure that operations are going to be able to continue in a lawful and uninterrupted manner for the next 12 months.