Terra Tech Corporation (OTCBB: TRTC) has signed an agreement with New Jersey-based Edible Farms to jointly construct and operate up to 10 acres of commercial hydroponic greenhouse specializing in production of locally grown, hydroponic produce.
Edible Farms cultivates and sells its line of living basil and other fresh hydroponically grown produce to major retailers throughout the Northeast such as Shoprite, Fairway, D’Agostino, Kings, and The Food Emporium. With current annual revenue in excess of $2,000,000, Edible Farms is looking to Terra Tech to expand its production capacity.
Based upon current gross revenue per square foot, the first 2.5-acre facility should produce close to $7 million in additional annual revenue. Several current retail customers have indicated a desire to purchase a greater degree of product as their production increases. This project will be 51% owned by Terra Tech, which is responsible for securing capital for the expansion plan.
“With over 12,000 grocery retailers within a six-hour drive of our farm, we are uniquely positioned to deliver produce that is extremely fresh and sustainable,“ said Ken Vande Vrede, director of marketing for Edible Farms. “We have estimated the local market opportunity to be in excess of $500 million and the appetite for locally grown sustainable produce to be enormous. This relationship with Terra Tech gives us a technological advantage over our competition and allows us to expand quicker and become more environmentally friendly in our cultivation.”
The agreement between Edible Farms and Terra Tech is to identify opportunities in the production of locally grown produce as well as brand expansion throughout the Northeast. Together the firms will work to develop marketing collateral, invest in increased automation, develop a marketing and branding strategy, design and source LED lighting technologies, secure additional contracts with retail chains, brand a specialized nutrient line, and plan construction of another 2.5 acres of hydroponic greenhouse to complement the operation on a 116-acre family farm in Belvidere NJ. The agreement is effective for 100 days, after which the entities will assess their continued joint efforts.