Terra Tech Corp. (OTCMKTS:TRTC) Digs a Deeper Hole
After yet another red session yesterday, Terra Tech Corp. (OTCMKTS:TRTC) sank to a new 52-week low. Volume picked up significantly and over 2.2 million TRTC changed hands before the closing bell. TRTC dropped 9.4% to close at $0.123 per share.
Things have been tough for TRTC in 2015 so far. Despite posting admirable Q1 revenues, launching its IVXX (pronounced four-twenty) line of products in various California dispensaries and finally providing a status update regarding its pot facilities in Nevada, TRTC has been logging new 52-week lows each month, starting in March.
The company’s Nevada update was probably not in line with everyone’s expectations. The June 1 press release informed that MediFarm, the TRTC subsidiary which was granted permits to operate pot dispensaries in Nevada, was going to break ground on one of the locations within the following 30 days. The PR stated all “improvements” should be finished and the facility should open its doors by “early October 2015”.
Pushing the opening of one of the two proposed dispensaries back to Q4 of this year, when TRTC previously stated it intended to have the dispensaries open in the summer, with the production and cultivation facilities opening in Q4, is nothing to cheer about.
The Q1 revenues were reportedly booster by IVXX sales but the company’s report also stated that TRTC will need an extra $400,000 for IVXX-related “working capital, inventories, salaries for sales personnel, and software”.
Investor confidence in the company seems pretty shaken up and there’s no real trigger within the foreseeable future that could help TRTC climb back up the charts, as the next report is due by mid-August. With dispensary openings pushed back to Q4 and no updated estimate for when the rest of the Nevada facilities may open, TRTC may still have difficult stretch ahead of it.
