Terra Tech Corp. (OTCMKTS:TRTC) On The Decline
Terra Tech Corp. (OTCMKTS:TRTC) had a successful trading session on Feb. 4, closing 35.40% up. Its upward surge didn’t last long, however – the company’s last two trading sessions ended in the red, closing 7.09% and 9.00% down, respectively.
News of the partnership between TRTC and Inergetics Inc. (OTCMKTS:NRTI) certainly made a splash. TRTC stated that it aims to combine Inergetics’s expertise in successfully developing and marketing nutritional supplements with TRTC‘s own agricultural expertise and established distribution network. TRTC investors saw that as their cue to start buying aggressively and the ticker soared for a session. That happened a week ago.
As expected, the hype died out quickly as the news went cold. Two days later TRTC made another attempt to re-ignite it by announcing the launch of their GrowMass program. The release was perfectly timed to push the ticker upwards, but failed to do so. Evidently the news that TRTC is going to give qualified permit winners access “to high quality, commercial grade cultivation equipment” was not as impressive to potential investors as company officials might have hoped.
Offering free consultations on the manufacture and use of its facilities didn’t seem to do the company’s market standing any good either, as the news proved largely irrelevant next to the other announcement made by the company on the very same date.
Said announcement turned out to be the first relevant news to come out of the company for some time now. It was issued in the form of a press release by TRTC, that was published on Feb. 6 and informed investors of the company’s purchase agreement with Dominion Capital LLC.
Under the terms of the Purchase Agreement, Dominion is to purchase up to $6,550,000 worth of TRTC common stock in 12 tranches over the period of one year, starting Aug. 5, 2014, at a price TRTC later estimated to be “approximately $0.30753 per share”.
It is obvious how such an agreement may eventually give the company some financial reach, however its effect on TRTC‘s market standing was immediate and negative to say the least.
The 8-K that made it official wasn’t filed until Feb. 10, but by then the news that stock will be sold at half its current price had already pushed the ticker down significantly. As it was, even the optimistic statements of Derek Peterson failed to halt its descent. Obviously investors didn’t find the news that TRTC‘s sustainable and locally-grown produce is now available at DeMoulas Market Basket throughout Massachusetts as “thrilling” as the company’s CEO did, especially in light of other recent news.
Another thing that investors might have found disconcerting is the fact that the company’s secretary and treasurer Amy Almsteier has sold 2.5 million shares of common stock since December. Under the circumstances, it is no wonder that TRTC stock fell nearly a dime and closed at $0.507 yesterday.
