Dear Derek Peterson CEO of TRTC.
I really am impressed with your plans for growing the business of TRTC which is a publicly traded company on the OTC market. You as the CEO should know that you are employed by us shareholders of the company. You of course are an employee, but also the largest shareholder.
I have become aware of your recent filing regarding enacting one or more Reverse Splits, and noticed a part in the filing where Class B shares will not reverse split, and will still convert into the same amount of common shares as before. In all you, and your fellow insiders class b shares are convertible into 214 million common shares.
Many of us have supported TRTC through some pretty difficult times, even buying your shares at 6 cents per share. We have supported you through thick and thin.
Now as things begin to turn around YOU and the other Insiders decide not to reverse split your own shares, only ours!
Just a comparison for you. Let us say that here in Internet Land we also own the same 214 million shares as you and your friends own through the class B shares.
Before the Split both you, and our shares are today worth 74.9 million dollars. Now you decide to do a deal for financing as you need $88 million as you recently filed for. $75 million for Acquisitions and $13 million for building out Nevada. This after already needing $7 million last year, but let's just forget about that.
So now you want to enact your Reverse Split with the share price at .35. You will take our shares and for every 20 shares give us one share. So a 1 for 20 reverse split takes the Shareprice up to $7
So now after the 1 for 20 reverse split my friends have 10.7 million shares worth the same 74.9 million dollars. Now comes the fun part. You and other insiders still have 214 million shares, because they did not split. YOUR SHARES ARE NOW WORTH $1.49 BILLION after the split.
So do you really believe that TRTC is worth more after a reverse split, where your shares did not split? If you did the above reverse split tomorrow The fully diluted market cap would go from $249 million today, to $1.675 Billion.
In that case the market is not stupid. The $7 shares would need to be corrected by investors down to $1.04 per share. This would be with fully diluted common shares at 239 million, and the same market cap as before the reverse split of $249 million. These numbers are from your 10Q for Q1 2016.
So you can understand why you have been getting a lot of emails from investors, and we are upset about this. Clearly you do not seem to care about his as nobody has received an answer.
At least your shares went up in value by about 3 times. We lose more then 85% of our equity.
Strangely after the value drop from $7 to $1.04 caused by your 214 million shares not splitting. Taking away the effect of the split from our shares would make them worth .052 today. VERY CLOSE to the historic lows.
Thanks a lot!!!
