Terra Tech Corp (OTCMKTS:TRTC)’s Recovery Continues
Just several days ago, on July 21, the stock of Terra Tech Crop (OTCMKTS:TRTC) hit an almost all-time low of $0.0795. The ticker not only managed to bounce on the very next day but for the past six sessions it hasn’t registered a single one ending in the red. The recovery has been nothing short of impressive and it seems that more and more investors are returning to the stock.
Yesterday TRTC gained another 24.4% and closed at $0.1779. The daily volume surpassed 5.2 million shares, the biggest volume seen by the stock for close to four months. apart from the technical bounce off of the record lows TRTC has also been publishing some encouraging PRs. Before the start of yesterday’s trading the company announced that its subsidiary Edible Garden, which offers hydroponic produce, has expanded its reach to 182 Stop & Shop grocery stores. In addition multiple PRs have detailed the expansion of the IVXX subsidiary – on July 21 4 new retail locations were added, on July 25 another 5 locations were announced while early in the morning today 7 new Los Angeles area based retailers were revealed.
Investors are indeed showing renewed enthusiasm towards the stock but caution should still be used. The latest financial report showed that TRTC is still in an alarming state with:
• $274 thousand cash
• $1.56 million total current assets
• $5.46 million total current liabilities
• $763 thousand total revenues
• $2.1 million net loss
Terra Tech have a working capital deficit of $3.9 million and an accumulated deficit of $38.8 million. So far the company has been funding its operations primarily through the sale of equity with the latest private placement taking place at the start of June. Back then TRTC sold 14,946,119 units priced at $0.1375 for proceeds of a little over $2 million. Each unit consisted of 1 common share and 1 warrant for the purchase of an additional share with an exercise price of $0.20625. A lot of shares were also issued to the directors and officers of the company as bonuses evidenced by the numerous Form 4s filed on July 25.
The next financial report should be submitted by mid-August and it will show if the financial state of the company has improved. It will also reveal the current number of outstanding shares. Investors should also take into account that, if the date doesn’t get pushed back once more, the MediFarm medical cannabis dispensary in Las Vegas should become operational in early-October.
