Last Friday, the stock price of Terra Tech Corp (OTCMKTS:TRTC) closed trading session up in double digits for a second consecutive day. The share price surged 17% to close the trading session at $0.247 per share. The company filed its annual report for FY2014 after the markets hours.
The financial performance
As per the latest financial report, Terra Tech reported cash of $846,000. The current liabilities stood at $6.4 million. The annual revenue was $7million and the annual net loss came at $22 million. It is evident that the figures are not what investors were anticipating. However, there were no initial indications that the report is going to outpace the expectations. By December 2014, Terra Tech cash balance had shrunk from the $3.47 million the company reported in September 2014. The lower cash balance is justified in light of the heavy expenses linked with the development activities and launch of the company’s IVXX brand and the ongoing efforts to start numerous dispensaries, growing and cultivation facilities in Nevada.
The cash injections
With the given cash situation and the dire need for more capital going forward, it becomes evident why Terra Tech had to opt for two cash injections in 2015. It finalized an equity line agreement with Magna Equities in late December and disclosed in January. It even issued a series of convertible notes amounting to $3 million, finalized in late February.
The other details
Terra Tech’s deal with Magna Equities was finalized under relatively favorable terms. However, it was not the case with issuance of convertible notes. The convertibles issued in February included heavy discount provision and conversion at a 25% discount from Terra Tech lowest VWAP twenty days before conversion.
In last trading session, the share price of Terra Tech surged 2.24% to close at $0.197 with share volume of 884,074.