Torchlight Energy Resources Inc (TRCH) stock started Monday, April 26, 2021, gaining 14.60% to close the normal trading session at $2.08 per share. but it could not continue its streak and lost 2.88% in the extended trading session.
TRCH shares have surged 372.73% over the last 12 months, and they have moved up by 30.00% in the past week. Over the past three months, the stock has gained 4.00%, while over the past six months, it has added 673.52%.
Let’s discuss its recent news.
Updates about the merger with Metamaterial Inc
On April 15, 2021, Torchlight Energy Resources, Inc. provided the update about its previously announced business combination with Metamaterial Inc. The company said that it is working to fulfill the regulatory requirements for the merger.
Both companies also have extended the date by which they must give notice of and call its special meeting of stockholders to April 30th.
On December 14, 2020, Torchlight Energy Resources and Metamaterial Inc signed a definitive agreement for a business combination of Torchlight and Metamaterial. Torchlight shareholders will retain an approximate 25% equity whereas shareholders of Metamaterial will get 75% equity interest in a combined company.
Participation in the investor conference
Torchlight Energy Resources and Metamaterial Inc participated in the 33rd Annual ROTH Conference which held online March 15-17, 2021.
The Chief Executive Officers of both Torchlight and META provided updates about the announced merger and other developments
Conversion of remaining $1.5 million senior debt
On February 16, 2021, Torchlight Energy Resources, Inc. secured noteholder converted all $1.5 million of its remaining position into common stock at the conversion price of $1.50 per share, for a total of 1,000,000 shares. after this conversion, Torchlight has no term debt remaining.
Earlier on February 1, 2021, the McCabe Petroleum Corporationconverted the entire principal amount of its $1.5 million secured convertible promissory note issued by Torchlight in September of 2020 into common stock at its conversion price of $0.375 per share, totaling 4,000,000 shares.
Closing public offering of common stock
On February 10, 2021, Torchlight Energy Resources, Inc closed the public offering of 23,000,000 shares of its common stock at $1.20 per share.
Torchlight will get gross proceeds of $27.6 millionintends to use the net proceeds for general business purposes and to provide $5 million of additional bridge financing to Metamaterial Inc.
Investors are waiting for merger completion which is getting delayed due to not fulfilling the regulatory requirements. Both companies need to announce the final date of the merger to attract investors.
About the company
Torchlight Energy Resources, Inc. (TRCH) was founded in 2007 and is based in Plano, Texas. TRCH 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.