Irvine, Oct. 15, 2013 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC), a hydroponic company focused on sustainably grown produce and medical cannabis cultivation technology releases corporate update and revenue guidance of $2,000,000 for the full year 2013.
Sales through Edible Garden and its line of locally grown hydroponic produce, which is distributed throughout the Northeast, have been strong for Terra Tech since the close of the merger in April. Management expects to realize approximately $2 million in revenue for the full year 2013.
Terra Tech recently announced a financing of convertible debentures. Aegis Capital Corp. acted as placement agent for the offering. To date the company has raised approximately $1,500,000 through the convertible debentures. The majority of the proceeds were used for the construction of the company's new 5-acre hydroponic cultivation facility. In addition the companies recent S1 filing with the SEC has become effective and they have begun to draw down on the Equity Enhancement Program with Magna Group. The company currently estimates needing an additional $1.2 million to finish the construction. The company expects to draw this additional funding from the existing Equity Enhancement Program as well as the issuance of additional convertible debentures.
"We're pleased we were able to acquire the necessary funding to get this project off the ground," said Terra Tech CEO, Derek Peterson. "Management is focused on utilizing our capital in accretive ways. We want to build and grow the company and it takes funding to execute on our plan. We are excited to enter 2014 with a facility that is capable of producing $10 million in sales annually at full capacity and at current prices. It gives us the ability to expand our product breadth as well as brand penetration."
To date the facility is approximately 85% complete. Venlo, who was contracted to construct the greenhouse, is currently installing heating, filtration and energy curtains. The company
The reason you won't see a huge jump in the stock price is that their cost of revenue is high. So even if revenue is way up from last year, if they are not turning profit it won't matter. It doesn't matter if they made 1 billion, if it cost them $999,999,999 to get it. Hopefully they will stay afloat for a number of years without too much dilution. I really hope they can start growing canabis and or hemp in the next few years, that will make this really start to move, otherwise we'll be under 25cents for a while.