Terra Tech Corp (OTCMKTS:TRTC) Surges Up The Chart
At the start of November 2014 the stock of Terra Tech Corp (OTCMKTS:TRTC) spiked above 50 cents per share. Since then, however, the ticker has been sliding lower and lower down the chart incurring massive losses. In fact, just a little over a week ago, on July 21, TRTC dropped to $0.0795, price that is near the all-time lows registered by the company.
After hitting such record lows the stock managed to bounce and for the last five sessions it has reclaimed some of the ground it lost. During yesterday’s trading TRTC enjoyed one of their best sessions in a while gaining nearly 29% and closing at $0.143. Is the positive momentum going to last though?
Compared to most of the other pennystock ventures and especially the ones operating in the medical cannabis industry TRTC seems to be a step ahead. The company is generating respectable revenues that were significantly boosted through their IVXX subsidiary that produces medical cannabis extracted products. The majority of the latest PRs issued by TRTC have been announcing more and more retail locations offering IVXX’s products – on July 21 4 locations were added while yesterday 5 more were announced.
Unfortunately the rest of Terra Tech’s financials remain quite disappointing. The company finished the first quarter of 2015 with:
• $274 thousand cash
• $1.56 million total current assets
• $5.46 million total current liabilities
• $763 thousand total revenues
• $2.1 million net loss
Not only is TRTC still far away from becoming a profitable entity but it also has a massive working capital deficit of $3.9 million and an accumulated deficit of $38.8 million.
In order to fund its operations the company has been relying primarily on external sources of capital and as a result quite more shares are being sold. On June 10 through a private placement TRTC raised over $2 million by selling 14,946,119 units. Each unit was priced at $0.1375 and consisted of one common share and one warrant for the purchase of 1 share with a exercise price of $0.20625. Investors should also note that the last wave of Form 4s filed on July 25 revealed that the directors and officers of the company have received a significant amount of shares as bonuses.
With the reach of the IVXX subsidiary being constantly expanded and the first MediFarm medical cannabis dispensary in Las Vegas expected to become operational in early October investors could once again get excited about TRTC. However, the red flags around the company should not be underestimated and any trades should be preceded by doing your own due diligence.
