Terra Tech Corp (OTCMKTS:TRTC) Down 25% Since Quarterly
Even though Terra Tech Corp (OTCMKTS:TRTC) published a rather optimistic press release to go alongside the company’s Q3 report, the market does not seem too enthusiastic about the stock. TRTC closed 10% down on Friday, marking a cumulative 25% drop since the quarterly report was put online.
Terra Tech have been going through some good times and some bad times in 2015, with a gradual shift from discounted convertible debt to more favorable sources of funds. IVXX – the company’s own premium cannabis product line – has also been expanding its market presence at an increasing pace, being carried by nearly 200 retail locations as of mid-November. The latest report also boasted significant YoY increases in both revenues and gross margin.
Despite all this, TRTC‘s year-to-date chart is not the prettiest sight in the world. This is in part due to the fact that for the better part of 2014 the stock’s volumes and price movement were primarily hype-driven, as the year of pot rocked the OTC. There’s also the matter with the company’s big long-team goal – TRTC‘s own dispensaries, cultivation and production facilities in the state of Nevada.
The early promise of those facilities during the Oct-Nov 2014 Clark County medical marijuana facility selection process sent TRTC to highs of over $0.50 per share. The multiple delays that the initial opening schedule for the facilities ran into were definitely another hurdle for the share price.
Here is the balance sheet contained in TRTC‘s latest quarterly:
- $1.3 million in cash
- $3.2 million in current liabilities
- $2.0 million in Q3 revenues
- $1.9 million in Q3 net loss
If people expected TRTC would suddenly turn into a profitable entity overnight just because of all the IVXX network expansion PR, it’s understandable that they will be disappointed with this sort of performance. TRTC still has a way to go before it opens the first of many anticipated marijuana locations in Nevada. The first dispensary is expected to open its doors within Q1 of 2016, provided there are no further delays, which the company can hardly afford without a blow to its reputation.
