Terra Tech Corp. (OTCMKTS:TRTC) Sinks on Heavy Volume
The marijuana sector has not been in a particularly flowery state lately. Terra Tech Corp. (OTCMKTS:TRTC) was not spared either, logging seven consecutive red days. Yesterday volume picked up dramatically and TRTC slipped 12% to a close of $0.53 per share.
The company’s share price lost a total of 30% in this latest red streak. It’s somewhat difficult to peg the exact reason for the last double-digit drop, though. TRTC posted a new press announcement yesterday, after the closing bell, informing investors that the produce of subsidiary Edible Garden is now available in 75 new locations.
The ticker has not had a chance to trade on the news yet so today’s session might bring a close to the red spell, if enough traders find enough to be excited about in another batch of vegetable news. The reason why TRTC got to such dizzying heights in mid-March was definitely not their excellent line of potherb produce. The company managed its impressive but obviously unsustainable climb on media exposure and news releases focused on TRTC‘s plans to move into the marijuana industry.
With no announcements connected to the company’s move into pot and with the recent suspension of Growlife, Inc. (OTCMKTS:PHOT) that sent a ripple throughout the sector, the slow decline in share price that is still plaguing TRTC is understandable. Similar to Tranzbyte Corp. (OTCMKTS:ERBB) in terms of chart movement, TRTC simply climbed too quickly and reached unsustainable levels, considering the current situation of the company.
TRTC‘s green produce business appears to be reasonably well developed, bringing in over $2 million in revenues for 2013. However, the last annual gross margin was rather thin, at under $100 thousand. Even when the Q1 2014 report comes through, it will not contain any numbers derived from marijuana as the company is still awaiting its Nevada license.
The last filing coming from TRTC was an S-3, detaining, in loose terms, the company’s intentions to seek funding of up to $50 million through the offering of common stock. The filing doesn’t list a price per share or an amount of shares to be registered and makes sure to emphasize that this information is tentative and subject to change, so no definite conclusion can be drawn from the document.
If the next quarterly that is due in a couple of weeks does show the ‘significant increase’ in produce sales, the company may recover some ground but until then TRTC‘s immediate future remains uncertain.
