Torchlight was not a promising business, and it is a concerning fact that Meta Materials was happy to go public via merging with Torchlight.Īll in all, it’s not hard to see why market participants are saying this deal looks more like a failed short squeeze than the launch of a promising new tech company on the Nasdaq. Torchlight had numerous issues as a public company, and short-sellers dogged it repeatedly. The very unusual merger of Meta Materials and Torchlight should instead give investors pause. There’s nothing wrong with that, of course, but Nova Scotia is not generally considered a hotbed for promising tech companies. One other interesting point: Meta Materials hails out of Nova Scotia, Canada. If Meta Materials has solid technology that will make advances in this arena, you’d think SPACs would have been lining up to buy up Meta Materials. These include uses in the health care industry, solar panels, automobiles and 5G technology among others. Meta Materials, the company, is seeking to develop a wide range of applications for its next-generation compounds. The metamaterial market is virtually non-existent now, but backers hope it can become a multi-billion dollar industry in the coming years. The company’s mission is to “go beyond” traditional compounds by developing new structures that don’t exist naturally in nature. Meta Materials intends to popularize so-called metamaterials into the mainstream. And where you have short-sellers, you often find meme traders.Īll told, it was a perfect set-up for a Reddit-induced trading squeeze. This, not surprisingly, attracted a bunch of short-sellers, given Torchlight’s uneven track record as an oil and gas company. In a short period of time, Torchlight was looking to sell its oil and gas properties, offer a dividend to shareholders, reverse split the stock and merge with a different company. But what explained the tremendous trader interest in TRCH stock and now Meta Materials? For one, it was a complicated transaction. The company merged with Meta Materials (NASDAQ: MMAT) and it now trades as MMAT stock. READ MORE: Raven (RAVN) pops 49% in pre-market on CNH’s $2.However, Hazel didn’t end up striking it rich, and Torchlight looked to exit the oil and gas business. In addition, Torchlight also announced a US$100 million share sale on June 16.ĭuring the first quarter ended March 31, Torchlight recorded a net loss of US$2 million. With the latest extension of the merger completion date, Torchlight will get enough time to pay the dividend on June 25. Also, the dividend is to be paid just before the transaction closes. In connection with the merger, Torchlight shareholders are entitled to a preferred stock dividend, which the company has declared on June 14. The combined company, which will operate under a new name, will align its operations with Metamaterial’s current business. Torchlight shareholders have approved the merger. Torchlight shareholders will keep the remaining stake. In December 2020, Torchlight announced its plans to merge with Canada-based Metamaterial, which makes functional materials and nanocomposite products.Īs per the merger agreement, Metamaterial shareholders will hold a 75 percent stake in the combined company. ![]() The company had interests in the Orogrande Project and the Hazel Project in Texas as of the end of 2020. Torchlight acquires, explores, and develops oil and natural gas projects in the U.S. READ MORE: Torchlight & Alfi: two trending stocks Both the companies have agreed to extender the completion date. Meanwhile, Torchlight said it would extend the completion of its merger with Canada-based Metamaterial Inc. The stock is up 1385 percent year to date, while it skyrocketed 2636 percent in the one-year period. Torchlight currently has a market cap of US$1.37 billion. The stock gained 16 percent on Friday while it doubled its value during the last week. Torchlight’s recent rally started last week. The Texas-based oil and gas company topped the trending list on the social media platform StockTwits, where investors and traders share their ideas.Īs of 9:52 am ET, Torchlight shares were trading at US$10.40, up 65.87 percent. (NASDAQ: TRCH) stock jumped over 65 percent when the markets opened on Monday, June 21, amid the meme-stock frenzy.
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