Terra Tech Corp (OTCMKTS:TRTC) Drops, Volume Dries Up
In yesterday’s session Terra Tech Corp (OTCMKTS:TRTC) took another blow and slipped 5% further down the chart. Daily volume was also down by almost a half. By the bell the stock found itself at $0.114 per share, red for the third time in a row.
Terra Tech last closed green a week ago, when it announced that its subsidiary, MediFarm, secured two additional permits for the operation of dispensaries in Nevada. The cheering was short lived as the 7% green close on the day of the news release has since been wiped in full.
The familiar mantra that pot stock supporters always seem to chant as their favorite ticker is struggling – “it’s a long-term investment” – can be heard from TRTC supporters as well. If only we had not heard this little comforting phrase multiple times over the last few years, often applied to stocks that crashed and burned so hard, investors are still dizzy from the concussion.
It’s true that what TRTC is doing at the moment is a longer-term commitment, with the company’s push to open multiple dispensaries in Q4 of 2015, then follow this up with the opening of cultivation and production facilities. The permits for those were secured back in the summer of 2014 but TRTC has been a little stingy with details surrounding the progress and buildup of all the locations. The last official word from the company was that the first locations should open their doors in October 2015.
If this does happen, TRTC will indeed become the first OTC company to operate its own medical marijuana dispensary but the simple fact of the matter is that there is no 100% guarantee that the dispensaries will open their doors and start generating revenue exactly as planned.
It’s also worth noting that TRTC signed a number of financing deals to secure the money needed for the buildout of its locations and one of those deals included convertibles carrying a fixed discount.
TRTC ended Q2 with a net loss of $2.7 million, despite selling its IVXX line of products in an increasing number of dispensaries over the quarter. Insider Amy Almeister, secretary and treasurer of the company, selling over 850,000 of the TRTC common stock she held within just a few weeks in late August and early September also did little to bolster investor confidence.
