This is why TRTC's share price is declining in spite of supposedly great news. Everybody should read and understand. And remember, I have been right all along.
TRTC admitted in it's revenue forecast update that they are engaged in warrant conversions with Aegis capital a known toxic PIPE financier to penny stocks. TRTC has converted almost $2.5 million worth of warrants and has another $4 million they could draw on. This is bad news!!! let me tell you why.
Every time Aegis converts a warrant it pays TRTC 31 cents - the agreed upon strike price - collects the stock and then immediately sells the stock at the higher price prevailing in the market for a profit. But to protect their profit margin, Aegis simultaneously sells TRTC stock short, because they know their selling of the newly acquired stock will drop the price of TRTC. So if you check you will notice that shares short has gone up. It is Aegis who is shorting. Get it!! This is how PIPE financing works!! and why so many pennies die as pennies.
So yesterday all the media activity initiated by TRTC was planned in advance. Management wanted to pump up the stock - it went up 9 pennies in the morning - because they knew this would provide a cushion as Aegis converted and sold their newly acquired shares and simultaneously shorted TRTC stock.
The way I see it, this will continue for a while, as TRTC has another $4 million dollars worth of unsold warrants!!!
This is why I have repeated ad infinitum that the day TRTC announces it has acquired conventional financing it will soar!!!
This is why when you people go to the open house you have to corner the CEO and tell him to STOP relying on PIPE financing!!! if not TRTC is headed way down for a long time....and if revenues do not grow fast enough to cover soaring costs this will become a vicious cycle and TRTC will become a permanent stinky pinkie with 2 or 3 billion shares outstanding!!! Even if revenues get to $20 million. Remember: Pinkies can do well but shareholders can get screwed!!!
Live and Learn...read my previous posts...I predicted it all...I know these pennies....
P.S. I was surprised that the revenue projection update made NO reference to Florida, Indiana etc....Hmmmmmm...did anybody else notice that? I wonder if the deal with these growers will provide negligibly small revenues....maybe we are overstating these contracted grow facilities.
P.P.S. The meet and greet will do nothing to the pps as long as Aegis is converting warrants!!!
P.P.P.S. The forecast clearly pushed back the date when MJ becomes a reality...a major downer!!! 18 months!!! is a long time!~!!
AI
