Terra Tech Corp. (OTCMKTS:TRTC) Races for the Bottom
Yesterday’s session brought more bad news for Terra Tech Corp. (OTCMKTS:TRTC) shareholders. The ticker dropped nearly 10% further down the charts, stopping at $0.11 per share. Volume was through the roof – almost doubling over the previous session, which was already heavy-volume. After 4 million TRTC shares changed hands – the most since late March – the company stopped 9.83% in the red.
It seems the problems TRTC is having with investor confidence may run deeper than it seemed. In previous articles we have covered the various financing deals TRTC signed in 2015, as well as the discounts the company provided to the parties providing the funds. There was the Magna Capital II, LLC deal, which allowed Magna to purchase shares 5% below market price. Then there was the convertible notes agreement for up to $3 million with an initial tranche of $750,000. The convertibles were issued to unnamed purchasers and can be turned into TRTC common stock at a 25% discount from the VWAP 20 days prior to conversion.
There’s also the matter with Nevada dispensary openings. After a previous estimation to open those in the summer of 2015, a recent company update pushed the date back to mid-October.
It seems no matter how many shares TRTC insider and director, Michael Nahass, buys on the open market, investor confidence is too shaken to really take this as a positive sign. Over the course of the last month, Mr. Nahass put up five separate Form 4 filings, showing him adding TRTC shares to his stake in the company.
With TRTC getting dangerously close to under a dime per share and failing to bounce yesterday, even though they were oversold already, there may be time for some more emergency PR to step on the brakes.