Terra Tech Corp. (OTCMKTS:TRTC) Drops the Ball in Clark County
Last week ended with a fizzle for Terra Tech Corp. (OTCMKTS:TRTC). After expectations ran high over the course of the week, the stock ended Friday’s session 26% down on heavy volume of over 15 million shares traded. This all happened even before the final results of the Clark County hearings were out. To the disappointment of TRTC shareholders, the company got neither of two permits it had applied for.
Admittedly, there seems to have been one external factor that contributed to the drop ahead of the final results. A rather inflamed Seeking Alpha article on TRTC was published by an author who disclosed a short position in the stock. This no doubt contributed to the wave of panic selling that took place minutes later.
What’s more disturbing is that the worst may be yet to come. The drop effectively happened before the names of the final four approved entities to get a dispensary were known. This means TRTC hasn’t really traded on the news that they failed to get either of the two dispensary permits they had applied for.
Investor discussion boards are swarming with people deep in denial. Posters who were telling everyone what a big deal dispensaries were just a couple of days ago are now telling everyone dispensaries are chump change and cultivation is the real deal. No matter how hard people try to sugar-coat the situation, the fact of the matter is that a lot of hopes were riding on those two permits.
What makes the situation even more unpleasant for shareholders is that GrowBlox Sciences, Inc. (OTCMKTS:GBLX), another publicly traded OTC Markets company, did get a permit through GB Sciences Nevada LLC. Over the course of the hearings people seemed to think TRTC was the only publicly traded applicant but it turns out this is not exactly the case. GBLX even published a press release in the small hours on Saturday, eager to spread the word. The last reported financial situation of GBLX happens to be far worse than that of TRTC. GrowBlox also never generated any revenues but the facts are the facts.
TRTC long supporters are now turning their eyes to the production and cultivation licenses the company applied for in addition to the two dispensary applications, hoping for better luck there. Before there is any news on those separate licensing processes, however, it’s not unlikely that TRTC suffers a further blow from active trading on the news that the dispensary dream on the Las Vegas Strip is not happening.
