Terra Tech Reverse-Split Ahead

Terra Tech (OTC: TRTC) traded sharply lower today after initial strength following news that the company is conducting a 1:15 reverse-split on March 13th, a move that was revealed on FINRA’s website:

Shareholders approved a potential reverse-split last year, with the Board of Directors authorized to do so by September 25, 2018, as reported in an SEC 8-K filing in late September. In the proxy, the Board justified it by suggesting that it would help meet quantitative standards to become listed on a higher tier exchange, to encourage greater investor interest and promote greater liquidity and to maintain capital-raising ability.

CEO Derek Peterson has repeatedly suggested that the company wouldn’t do a reverse-split without a good reason, suggesting that it would take place in conjunction with either a move to a higher exchange or as part of an acquisition. The company, which has scheduled a conference call for Thursday afternoon to discuss its Q4 financials, currently has 990 million shares authorized and 975 million shares outstanding.

Breaking News by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

Get Our Sunday Newsletter