Terra Tech Corp. (OTCMKTS:TRTC) Picks Up More Speed
After a solid Thursday close that saw Terra Tech Corp. (OTCMKTS:TRTC) climb 13% after a streak of single-digit moves in both directions, the ticker gained more momentum and swung to a 24% green close on Friday, at $0.697 per share.
TRTC moved a dollar volume of $6.7 million, landing a spot among the top 10 most heavily traded OTC stocks for the day. The company was likely buoyed by the media coverage it received on the same day. TRTC‘s president and CEO, Mr. Peterson, was interviewed by Bloomberg TV and spoke about the company’s plans and vision for the growing marijuana industry.
TRTC is currently working on expanding its installed base of growing facilities, with a recently launched 5-acre facility in Belvidere, New Jersey, but those are currently being used for growing market produce, with the company contemplating planting ‘a different seed’ at some point in the future.
One of the slides used in the interview highlighted that TRTC expects more than $2 million in revenue for 2013. While this estimation is entirely possible, it does not really paint the full picture. Here is what TRTC had to show as of its last 10-Q for the period ended September 2013:
- $40 thousand in cash
- $1.9 million in accounts payable
- $1.5 million in revenue for Jan-Sep 2013
- $2.6 million in net loss for Jan-Sep 2013
The company’s revenue is almost completely wiped out by a $1.49 million in costs of goods sold. Adding $1.7 million in selling, general and administrative expenses leaves the company with sizable net loss on its hands. The company’s annual report is still due and that will show how 2013 panned out as a whole.
In mid-February TRTC informed of a financing deal with Dominion Capital LLC through convertibles and warrants that landed the company $800,000 in cash. The notes can be converted at any time and convert at a 10% discount from an averaged price the company estimated to be $0.30 cents. Given that TRTC has climbed to nearly $0.70 per share, this could spell potential trouble down the road, as there’s the possibility that large portions may be converted and dropped on the market.
TRTC is among the companies that managed to latch onto the marijuna excitement train that’s been parading across the OTC markets for over two months now, climbing sharply from under $0.10 in December 2013 to the current price levels, thanks to its involvement in hydroponics and growing facilities, even if at present they are not used for producing weed. Other marijuana tickers that landed among the top 10 most heavily traded OTC include Creative Edge Nutrition, Inc. (OTCMKTS:FITX) who closed nearly 2% up. Hemp, Inc. (OTCMKTS:HEMP) moved 4% down to a close of $0.10.
