Cannabis-focused agriculture firm Terra Tech Corp. (OTCQX: TRTC) has unveiled plans to begin selling cannabis to recreational users in California.

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The City Council of San Leandro voted March 18 to approve an ordinance for adult-use cannabis sales in the city. The ordinance is subject to a second reading which is scheduled to occur on April 1 and will go into effect on May 1.

The ordinance would allow for existing medical dispensaries to sell cannabis to recreational users 21 years of age or older, starting May 1. Terra Tech currently operates the only licensed medical cannabis dispensary, located at 1915 Fairway Drive San Leandro.

What Next

The City Council’s decision is important for Terra Tech, which has seen consistent medical foot traffic at its Blüm San Leandro dispensary. According to the company, a significant number of adult users, over 200 a week on average, have been turned away since the medical facility opened its doors on January 11.

The company is reporting strong sales in San Leandro which is a suburb city of San Francisco and Oakland, centered in the dynamic San Francisco Bay Area, with a community of more than 89,000 residents.

Terra Tech CEO Derek Peterson states that the ruling “brings us a step closer to serving the adult use market in that region. The Blüm, San Leandro medical cannabis dispensary opened in January this year, to strong demand, and we are excited to prepare for a ramp in sales.” He expects

The company is currently developing cannabis strains and genetics at its West Grand Avenue cultivation facility. It plans to sell those products through its San Leandro dispensary under the IVXX premium brand. Peterson expects that “the store will have the potential to generate a $5 million run rate” following the start of adult-use sales in May.