On Wednesday’s trading session, the stock price of Terra Tech Corp (OTCMKTS:TRTC) declined almost 10% and closed the day at $0.11 per share. The volume was almost double of the previous trading session, with 4 million shares traded, the most since March. However, the stock recouped almost 50% of its losses and gained more than 5% in yesterday’s trading session. The gains came at a share volume of 2.22 million compared to average share volume of 1.06 million.
The concerns
The recent momentum of the stock indicates that the problems that Terra Tech is having with investor confidence is getting severe. The main issues are related with the various financing agreements that the company signed in 2015, and the discounts it provided to the entities offering the capital.
The first deal to be mentioned is the Magna Capital II, LLC deal, which enabled Magna to buy shares at 5% below market price. The second one was convertible notes deal for up to $3 million with a preliminary tranche of $750,000. The notes were issued to unnamed individuals and can be turned into company’s common stock at discounted prices.
The operational problems
Apart from the financing problems, Terra Tech Corp (OTCMKTS:TRTC) is also facing problems in its operations. The first severe matter is with Nevada dispensary openings. As per the previous released statements, the Nevada dispensary was expected to open in the summer of 2015. However, a recent company update clearly stated that the dispensary will now open sometime in mid-October.
It is evident that no matter how many shares Terra Tech director and investor, Michael Nahass, purchases from the open market, investor confidence will not come back anytime soon. In last one month, Mr. Nahass submitted five separate Form 4 filings, representing that he is adding TRTC shares to increase his stake in the company.
