Therefore, the current value to TRCH shareholders is only 25% of that of Metamaterial's current market cap plus the value of TRCH's oil and gas assets. I think that Metamaterial is an exciting startup, but the end of the short squeeze is likely to push down its shares back to around $3 per share. Perform your own due diligence and consult a financial professional before trading. This Transaction provides our shareholders with access to the multi-billion-dollar markets that Metamaterial serves and new applications that are being revolutionized with their sustainable technologies, while still allowing our Shareholders at closing of the Transaction to participate in the proceeds of our oil and gas asset divestitures., METAs management, led by George Palikaras, has built an extraordinary award-winning cleantech company whose proprietary advanced technologies address multiple markets and improve their customers capabilities, saidGreg McCabe, Torchlights Chairman. Upon completion of the Transaction, shareholders of Metamaterial are expected to hold an approximate 75% equity interest in the combined company while Torchlight shareholders will retain an approximate 25% equity interest in the combined company, subject to the pre-closing financing described below. , this is what I like to see in a startup a rapidly growing market and great products and partnerships. (5) NanoWeb - A Revolutionary Transparent Conductive Film - YouTube. If you have an ad-blocker enabled you may be blocked from proceeding. Drilling rights in the Permian Basin of West Texas and New Mexico averaged about $24,000 an acre in recent deals, down 67% from 2018, according to Rystad Energy, an Oslo-based research firm. The Global Cleantech 100 is an annual guide to the leading companies and themes in sustainable innovation and features companies that are best positioned to solve tomorrow's clean technology challenges. The webcast link will be made available and announced shortly. Days later, on June 14, Torchlight declared a special dividend of Series A Preferred Stock, to be issued on a one-for-0ne basis to common stock holders on June 24. Torchlight is likely to end soon is because the company is taking advantage of the irrational share price increase and has launched a, Brooklyn ImmunoTherapeutics made a similar move. Need more information or have an interview request? The stock price of Torchlight Energy Resources Inc (NASDAQ: TRCH) is trading at over 10% pre-market as of 7:14 AM ET. The merger was analyzed by SA contributor Safety In Value back in March. Certain stockholders of each of Torchlight and Metamaterial have executed customary voting and support agreement pursuant to which persons representing approximately 16% of Torchlights and approximately 48% of Metamaterials outstanding voting power have agreed to vote in favor of the Transaction, subject to customary applicable terms. Please. I am not receiving compensation for it (other than from Seeking Alpha). As well as the conversion of the company's debt to equity. Torchlight has engaged Roth Capital Partners as financial advisor and Stikeman Elliott LLP and K&L Gates LLP as legal advisors, and Metamaterial has engaged Hamilton Clark and Cormark Securities as financial advisors and Fasken Martineau DuMoulin LLP andWilson Sonsini Goodrich& Rosati P.C. Torchlight Energy Resources, Inc. (TRCH), based inPlano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary objective of acquisition and development of domestic oil fields. CTO and Chairman Dr. Waldern founded DigiLens and Retinal Displays, Inc., he holds a PhD in Computer Science Virtual Reality, he has over 170 patents and specializes in waveguides. The company it's combining with, Metamaterial, has no interest in TRCH's business or assets. Please disable your ad-blocker and refresh. Article printed from InvestorPlace Media, https://investorplace.com/2021/06/mmat-stock-meta-materials-hits-nasdaq-as-trch-stock-merger-closes/. Please. The oil and gas exploration and production company based out of Plano, Texas, has become something of a regular on meme chats and threads, likeReddits r/WallStreetBets and other subreddits, in recent weeks. Electro Optical & Infrared Systems (EO/IR). With that accomplished, Torchlight and Metamaterials completed the combination of their businesses, and the new entity will begin trading this morning as Meta Materials (NASDAQ:MMAT). For TRCH stock investors, the new focus adds an unfamiliar dimension to what had been an oil and gas exploration and production company based out of Plano, Texas, with a total of four full-time employees. Torchlight will declare a dividend of preferred stock to its common shareholders on the record date, with such dividend being payable immediately prior to closing of the Transaction. Although the management of Metamaterial believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Colleran, who has previously served as CEO at ventures including Impinj and AnswerDash, said Lumotive is pursuing a step-by-step plan to catch the rising tide. Biosensors - they are in the development process of a non-puncture blood glucose monitoring system. Its assets are practically worthless, and the stock is worth a fraction of its current market cap that has runup on the merger agreement. This confirms to us that our analysis on TRCH is correct. I have been investing in stocks since 2007.I have no preference for sectors or countries - I'm as comfortable owning a part of a cement miner in Peru as holding shares in a wheat farming firm in Bulgaria. There is no share available for short selling at Torchlight. Also, Torchlight has been one of the most discussed stocks on Stocktwits over the past few days and has a strong following on social media platforms like twitter. In December 2020, Torchlight Energy Resources and Metamaterial had announced a definitive agreement was signed for a business combination. Metamaterial designs, develops, and manufactures advanced materials specializing in nanocomposites, nanofabrication, and machine learning to control light and electromagnetic waves. Merger Metals LLC has over 40 years of Industry Experience. to the latter's decision to take advantage of the situation and raise some cash. While Torchlight's refinement of strategy management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Housing Market Crash Alert: Mark Your Calendars for Feb. 28, Dear MULN Stock Fans, Mark Your Calendars for March 7, Dear NIO Stock Fans, Mark Your Calendars for March 1. I wrote this article myself, and it expresses my own opinions. The reason why investing in short squeezes is a bad idea is because they dont last long. Financials The finances of META do not, in my opinion, create an accurate picture. Once the two companies combine, it will just be Metamaterial. Torchlight available for borrowing. That gave it a market cap of only $48M. Like I explained in my article on KULR Technology Group (KULR), this is what I like to see in a startup a rapidly growing market and great products and partnerships. Like the other metamaterials . METAs unique Nanoweb films are 98% transparent, meaning that they can be placed on any glass. Of course, they will additionally get whatever TRCH can sell its assets for or whatever their share is worth from the TRCH asset spinoff. (you can quote me on this). Short squeezes rarely last long and Torchlight is selling shares, which is a very good scenario to take a short position. Torchlight Energy (TRCH) -5% post-market after announcing a one-for-two reverse stock split and confirming that its merger with Metamaterial will take effect on June 28. On 4/29/19, we published a report that stated we believe that Torchlight Energy (TRCH) assets are worthless and that "we do not believe Torchlight will be able to successfully complete the sale of the company or its asset(s).". After the merger and up-listing to the NASDAQ, I expect META to be trading no lower than $5. Meta Materials will be buying all issued and outstanding shares of Nanotech stock for a set price of $1.25 per share as a part of the merger. We believe its oil and gas assets are worthless, or worth very little, and that will be confirmed in time if the company won't be able to sell them, as we expect to happen. TRCH will sell its assets or spin them off before the business combination happens; the combined company will get none of TRCH's assets. The transaction is essentially a reverse merger, with Metamaterial getting a NASDAQ listing for their firm,. On that date, the company . Augmented Reality applications- META has been developing the necessary technology while also acquiring other companies and their patents. It sounds like the merger vote will occur sometime around mid-March. Shareholders have approved the deal, whose terms stipulate that Metamaterial. The company, which pushed back the closing of the deal to June 30, upsized its stock offering to $250 million last week from $100 million to take advantage of the share price rally. However, there are still some. In 2018 META was awarded "Best New Product in Commercial Aviation" by Aviation Week Network at the 63rd Annual Laureate Awards, for metaAIR, a Laser Strike Protection solution to protect pilots from harmful laser attacks without interfering with visibility. Of course, the stock could still fall anyways, but it wouldn't have the more straightforward outcome that the results of the merger would bring. You see, Metamaterial wants to list on a large US stock exchange, and to do this, its carrying out a reverse takeover with a small NASDAQ-listed US energy company named Torchlight. "When the business combination with Torchlight closes, obtaining a national exchange listing in the United States is anticipated to provide META with significant value and increased access to global capital markets. TRCH has risen as much as 400% since the beginning of the year, and has doubled over the last week. As a result, META has won a number of industry awards and federal government grants for its pioneering work, including being named among the "2019 Global Cleantech 100", by Cleantech Group. They just received a 10m loan from Torchlight to continue this expansion. The current price of West Texas Intermediate (WTI)is currently $61.50 barrel. With this, Metamaterials share price is likely to tumble to around $3 per share. 3rd party valuation of potential recoverable hydrocarbons, 2. On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. There can be no assurances that the Transaction will be consummated. Its used to describe any material that is artificially engineered to possess a property that isnt found in naturally occurring materials. "In order to unlock value potential from our national listing and access to the capital markets, we shifted some attention from the divestiture of our oil and gas assets to an acquisition strategy targeting proven disruptive technology companies with strong environmental, social and governance (ESG) priorities. META partnered with Airbus to develop and commercialize this technology. This will also trigger a special dividend to shareholders of Torchlight. 333-213390) containing a joint proxy statement/prospectus of SolarCity and Tesla. The preferred share will provide shareholders of record, the right of participation in the net proceeds of the sale of Torchlights oil and gas assets, subject to certain holdbacks and time constraints. Torchlights Shareholders will also be able to obtain a copy of such documents, without charge, by directing a request to:John A. Brda, President of Torchlight Energy Resources, Inc., 5700 W. Plano Parkway, Suite 3600,Plano, Texas75093; e-mail:[emailprotected]. Article printed from InvestorPlace Media, https://investorplace.com/2021/06/trch-stock-the-big-news-that-has-torchlight-energy-soaring-today/. Our Tesla Roadster expertise is particularly unparalleled and our electronics lab offers advanced services including PEM repair and rebuilds, ESS Battery Pack repair and recovery, firmware upgrades, and a variety of aftermarket products. All rights reserved. In a reverse takeover to list on the Nasdaq and access the U.S. capital markets, Metamaterial Inc, a smart materials and photonics company, last year agreed to merge with Torchlight, an oil and gas producer. It would probably fall on this news, as it has also appreciated significantly over the last few months likely due to the anticipated merger. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The dividend will be one preferred share on a pro rata basis of the holding company holding the net proceeds (or assets if they have not yet sold). Oil prices are expected to rise to $80-$100 a barrel in the next six months. $12M is about the value of a clean empty shell Nasdaq listing. Prior to closing, all debt of Torchlight is to be converted into common stock or repaid in full, excepting senior secured debt that may alternatively be modified such that the debtholders sole recourse in respect thereof will be against Torchlights pre-closing oil and gas assets. Torchlight has engaged Roth Capital Partners as financial advisor in connection with the transaction. On YouTube, the company is being covered and promoted by several channels including Moon Market, Alpha Status Stocks, DarrenJacksonTV, Trading With CJ, and Voorhees Trading. TRCH stock had more than doubled this month. 1125 N. Charles St, Baltimore, MD 21201. You can view it, Metamaterial shareholders get 75% of the new company. The story is narrative-driven and its not prudent to use traditional metrics such as P/S, P/E, or EV/EBITDA. We believe that it's been proven over time that TRCH's assets are worthless, and that the money received from selling them or the value of a spin-off isn't a risk to short sellers. Two of the project sites are under contract to be sold and the largest asset, the Orogrande site, is likely an extension of the Permian Basin and is being marketed to major and super major oil companies. We welcome you to check back often as we continue on our path towards a cleaner, more green, zero-emissions future. Additional Information and Where to Find It. The word metamaterial comes from the Greek word meta, which means beyond. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. Transformational Deal to Accelerate Growth, Scale and Commercialization of Metamaterials. Nasdaq The closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including approvals by NASDAQ and the Canadian Securities Exchange (CSE), Canadian court approval, and approval by the shareholders of both companies. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. It appears to only want the Nasdaq listing. I view it as likely since there are no shares available for short-selling as of the time of writing, according to data from. which is measured in Tesla (T). The assets of Torchlight energy include three project sites, an experienced management team, access to capital, and a NASDAQ listing. Opening a small short position on the CSE could be a good idea. There can be no assurances that a transaction will be consummated as a result of the LOI. I think the main risk for the bear case is a second short squeeze. Torchlight has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Holders of Exchangeable Shares will be entitled to cast votes on matters for which holders of Torchlight common stock are entitled to vote and will be entitled to receive dividends that are economically equivalent to the dividends declared by Torchlight with respect to its common stock. Is there a short squeeze? The original planned business combination PR, on 9/21/20, states: The Combined Company shall use its commercially reasonable efforts to cause the Torchlight oil and gas assets to be sold by June 30th, 2021. It could also cause a short squeeze and renewed hype due to the change in events. Metamaterial designs, develops, and manufactures advanced materials specializing in nanocomposites, nanofabrication, and machine learning to control light and electromagnetic waves. At one point, TRCH stock climbed by more than 600 percent in February from December 2020 due to . Cardano Dogecoin Algorand Bitcoin Litecoin Basic Attention Token Bitcoin Cash. Housing Market Crash Alert: Mark Your Calendars for Feb. 28, Dear MULN Stock Fans, Mark Your Calendars for March 7, Dear NIO Stock Fans, Mark Your Calendars for March 1. Whatever value TRCH's oil and gas projects end up being won't be significant in our opinion. for their shell and get to keep the energy business. as legal advisors. And it expresses my own opinions merger was analyzed by SA contributor Safety in value back in March getting NASDAQ... The webcast link will be consummated as a result of the company it 's combining with, Metamaterial, no. 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