Terra Tech Corp (OTCMKTS:TRTC) Recovery is Short-Lived
News of a new equity financing agreement pushed Terra Tech Corp (OTCMKTS:TRTC) up by nearly a quarter on Friday. Did investors start cheering a little too soon, though? Yesterday TRTC pulled back 7% to stop at $0.133 per share.
The company announced signing an equity financing agreement with three separate, unnamed accredited investors. The deal involved TRTC receiving $2.05 million in cash against the issuance of 14.94 million units, priced at $0.1375 each. The units consist of one share of TRTC common stock and one warrant to purchase an extra common share, with a warrant exercise price of $0.206.
The exercise price of the warrants attached to each unit seem to have rekindled investor hopes for the long-term success of TRTC but it seems the climb over the $0.206 warrant exercise price may take a while. The share price seems to have got ahead of itself and yesterday’s immediate correction may signal that the rough patch TRTC has been laboring through is not over yet.
As we stated, it’s commendable that the company managed to secure equity financing that is pretty much at market value as of the day of the signing and has no toxic discounts of the kind present in TRTC‘s previous financing agreement with its fixed 25% discount upon conversion.
However, it seems this alone was not enough to give the stock a lasting boost. It should be noted that the 23% jump on Friday came in the wake of a long, screeching series of ever newer 52-week lows and TRTC was also oversold by the time it reversed.
The company’s previous PR concerned the expected opening date of its first dispensary location in Nevada. The projected date has been pushed back from “summer of 2015” to “early October”.
