At TRCH's current share price, Metamaterial would have to have a market cap of around $2B by then in order for longs to make a gain apart from any dividend. Investors appear to be responding to rumors about the company working with Tesla. A video interview with both CEO's and Torchlight's Chairman will be available this week and separately announced with links provided. At this point I think their customer service reps probably have PhDs. A pending merger bought a couple of extra days, enough to ensure a special dividend is paid in time. Metamaterial ( OTCPK:MMATF) is merging with Torchlight Energy Resources ( TRCH ). With this reverse merger Metamaterials will be brought into the main market with Torch becoming the shell company. On April 30, the company disclosed that it inked an agreement with a fund named Lincoln Park Capital to sell shares for up to $20.8 million. Torchlight has engaged Roth Capital Partners as financial advisor in connection with the transaction. Following the Closing of the Transaction the board of directors of the combined company shall be comprised of 7 members (a) one of whom shall be appointed by Torchlight , subject to the approval of META and (b) one of whom shall be jointly agreed to by META and Torchlight . 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). The company isnt popular on WallStreetBets, but you can find viral posts on the RobinHoodPennyStocks, pennystocks, and smallstreetbets subreddits touting it as a potential short squeeze. The combined entity will continue to service a clientele of world-class OEM customers for a range of applications in the automotive, aerospace and defense, energy, consumer electronics and medical markets. While 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. Often but not always, forward-looking information can be identified by the use of words such as expect, intends, anticipated, believes or variations (including negative variations) of such words and phrases, or state that certain actions, events or results may, could, would or will be taken, occur or be achieved. That equals $251.6/1.27 = $198M USD. The story is narrative-driven and its not prudent to use traditional metrics such as P/S, P/E, or EV/EBITDA. 1125 N. Charles St, Baltimore, MD 21201. If no sales occur, then they will receive an equity interest in a spin-off entity that holds TRCH remaining oil and gas assets.". Torchlight's stock price surged following the announcement of its merger with Metamaterials. Is this happening to you frequently? Lorem ipsum dolor sit amet, consectetur adipiscing elit. For additional information on Torchlight, please visit www.torchlightenergy.com. 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. I am not receiving compensation for it (other than from Seeking Alpha). Ive already covered one short squeeze selling opportunity in 2021. 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. ", "META's management, led by George Palikaras has built an extraordinary award-winning cleantech company whose proprietary advanced technologies address multiple markets and improve their customer's capabilities," said Greg McCabe, Torchlights Chairman. The company isnt popular on WallStreetBets, but you can find, Also, Torchlight has been one of the most discussed stocks on. Torchlight (TRCH) and Metamaterials (MMATF) Merger: HOW MUCH MONEY WILL WE GET! Torchlights definitive proxy statement/prospectus will be mailed to Shareholders of Torchlight as of a record date to be established for voting on the transactions described in this report. The reason why investing in short squeezes is a bad idea is because they dont last long. GameStops January short squeeze lasted just around two weeks and ended just as mainstream media picked up the story. Jun. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (. We have an over 80% success rate, see our reports at whitediamondresearch.com. Shareholders have approved the deal, whose terms stipulate that Metamaterial. Nasdaq The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines. There are no shares of Torchlight available for borrowing. Today, I want to talk about how an interesting Canadian startup named Metamaterial (. View Details 1425 W. 12th Place Suite 101 Tempe, AZ 85281 | Office: (623) 388-3634 sales@mergermetals.com Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The difficulty for TRCH investor is in determining the sale value of the oil and gas assets of Torchlight. Assuming that TRCH's assets are worthless, based on Metamaterial's market cap, that values TRCH at $198 x 25% = $49.50M, which equals a share price of $49.5M/143M = $0.35. Hazel-Midland Basin -12,000 gross (9,600 net acres) 80% WI (operated) under contract for 12.4m ($1300 acre), 3. 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. Is this happening to you frequently? The combined company, formerly known as Torchlight Energy Resources, Inc., will change its name and focus its business to align with the current business of Metamaterial. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Theres even room for more lines. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. Opening a small short position on the CSE could be a good idea. META has a growing patent portfolio and is currently developing new materials with diverse applications in concert with companies in the automotive, aerospace, energy, consumer electronics and. The current price of West Texas Intermediate (WTI)is currently $61.50 barrel. , this is what I like to see in a startup a rapidly growing market and great products and partnerships. The company it's combining with, Metamaterial, has no interest in TRCH's business or assets. "I am excited to work with them and equally excited about the outcome for our faithful Torchlight shareholders. I am not receiving compensation for it (other than from Seeking Alpha). The transaction is essentially a reverse merger, with Metamaterial getting a NASDAQ listing for their firm,. Metamaterials are a subset of functional materials, according to the company. Torchlight. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Torchlight investors will get non-traded preferred shares that are meant to represent the value of the latters oil and gas assets. This transaction is similar to the popular deals involving special purpose acquisition companies (SPACs). . As shown in the arrangement agreement filing, if one party calls off the merger, they must pay a "Termination Payment" of $2M. I intend to hold my shares for a minimum of two years. 1125 N. Charles St, Baltimore, MD 21201. It has been our goal for META to be a NASDAQ-listed company," stated George Palikaras, President & CEO of Metamaterial. As shown in Metamaterial's executive statements above, there is no mention at all of any value to TRCH or its assets. For those who . His Substack newsletter,TLV Strategist, covers the Israel business scene. On April 30, the company. ), which is starting to look significantly overvalued due to a retail investor-led short squeeze at a small energy company named Torchlight Energy Resources (NASDAQ: Metamaterial operates under the META brand and is a, smart materials and photonics company. Torchlight shares will be static, METAs shares will be adjusted to maintain the ratio of 75% META share ownership and 25% Torchlight share ownership. Fundamentally, it could be todays announcement that the company bought a few extra days to finalize a merger transaction. I wrote this article myself, and it expresses my own opinions. An entity owned by Greg McCabe, Torchlight's Chairman, provided a bridge loan to Torchlight for USD $1.5 Million with a conversion feature of $.375 per common share of Torchlight. I wrote this article myself, and it expresses my own opinions. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Higher field strength systems cost much more. Torchlight urges you to consider those risks and uncertainties in evaluating its forward-looking statements. 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).". Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements as a result of various factors, including those risks and uncertainties described in or implied by the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of Torchlight's 2019 Annual Report on Form 10-K, filed on March 16, 2020 and Torchlight's other reports filed from time to time with the Securities and Exchange Commission. Additional risks and uncertainties are described in or implied by the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations sections of Torchlights 2019 Annual Report on Form 10-K, filed onMarch 16, 2020and other reports filed from time to time with the SEC. Orogrande Basin 134,000 acre lease 72.5% interest (97,150 net acres), the site has had several successful test wells drilled. I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at, Torchlight. CFO & EVP - Ken Rice has a JD, MBA and a Master of Laws in taxation, he works as in-house counsel and is charge of financing efforts and progressing Metas medical products initiatives. Whatever value TRCH's oil and gas projects end up being won't be significant in our opinion. as legal advisors. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by those sections. Stocks rally, bonds tumble as China manufacturing rebounds, inflation weighs, Biden says 'I'm gonna raise some taxes' in March budget proposal, Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel, Exclusive: Tesla readies revamp of Model Y codenamed 'Juniper', China scoffs at FBI claim that Wuhan lab leak likely caused COVID pandemic, U.S. Air Force flags plans to buy 26 E-7 planes from Boeing, Caterpillar reaches tentative deal with union, averting possible strike, Exclusive news, data and analytics for financial market professionals. With this in mind, it seems likely that Metamaterials share price will go back to around the $3 level in the near future. I could not find anyone willing to go on record. Such statements are based on the current expectations and views of future events of the management of Metamaterial and are based on assumptions and subject to risks and uncertainties. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the ability of the parties to reach agreement on definitive agreements, the ability of the parties to raise necessary equity capital, approval of the transaction and continued listing by the NASDAQ, approval of the Canadian Securities Exchange, receipt of shareholder approval and required third party and regulatory consents, the risk that Torchlight may not be able to dispose of its oil and gas assets on favorable terms or at all, risks related to the technology industry, market strategic and operational activities, and management's ability to manage and to operate the business. Torchlight's stock rose as high as 74% last Monday as retail investors piled into the stock with record volumes. Only the Nasdaq listing. As a result,. It will likely be spun off onto the OTC exchange. If it's a value stock - great. "NASDAQ is the world's premier technology exchange, providing us with the best platform to expand awareness of META on the global stage and fully realize the value of our portfolio of innovative sustainable products. Is there a short squeeze? Although Metamaterial has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. META's innovations have been reported in popular technology magazines such as Wired.com "Bizarre New Materials Could Make Bendy Phones That Work" and the Financial Times which listed the category of metamaterials in their "50 Ideas To Change The World" in a special annual report. Shares of Meta Material Inc (MMAT.O) gave up premarket gains to fall 20% on Monday, the first day of trading after a merger that saw the niche hi-tech materials maker swallow Torchlight Energy . Torchlight said on Friday that it closed the deal and the new company, Meta Materials Inc, would begin trading under the ticker symbol "MMAT" on Monday. I wrote this article myself, and it expresses my own opinions. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. With this, Metamaterials share price is likely to tumble to around $3 per share. Torchlight stock closed at $4.95 a share Friday, and Meta Material. 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. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and other forms of energy. In November 2020, Torchlight extended an existing letter of intent with Metamaterial to work toward a definitive merger agreement. There is no share available for short selling at Torchlight. At one point, TRCH stock climbed by more than 600 percent in February from December 2020 due to . I view it as likely since there are no shares available for short-selling as of the time of writing, according to data from Fintel. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Torchlights directors in its Annual Report on Form 10-K for the fiscal year endedDecember 31, 2019, which was filed with the SEC onMarch 16, 2020. The industry leader for online information for tax, accounting and finance professionals. You can view it here. I was told that 50 cents a barrel was a valid price for the amount of potential oil with the limited studies that have been done. 1125 N. Charles St, Baltimore, MD 21201. As you can see, there are many possible valuations. Their technology can allow multiple transparent 5G antennas for IoT integration and their nanomaterials can improve the angular scan range of LIDAR used in self-driving vehicles. Please disable your ad-blocker and refresh. It all happens at the free AI Super Summit. Accordingly, readers should not place undue reliance on any forward-looking statements or information. TRCH could announce something along the lines of: "with the new interest in our company from investors, we have terminated the merger agreement and will continue to develop our projects.". We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. If you have an ad-blocker enabled you may be blocked from proceeding. Torchlight, Metamaterial and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Torchlight Shareholders in connection with the proposed business combination. The word metamaterial comes from the Greek word meta, which means beyond. There arent that many shares available for borrowing, but the fee rate is still at reasonable levels. If the merger is approved, a shareholder with 100 shares of Torchlight would receive 100 shares of the preferred stock in the holding company and 100 shares of the new company. Using that market cap, that puts TRCH's value at only $48M x 25% = $12.12M. "During the past six months the oil and gas market has softened due to the economic slowdown resulting from the pandemic," stated John Brda, Torchlight's CEO. Torchlight Energy Resources, Inc. (TRCH), based in Plano, 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. Brooklyn ImmunoTherapeutics made a similar move. Metamaterial is listed on the CSE. Torchlight Energy Resources announced on June 25 that it completed the necessary steps to make its merger with Meta Materials, Inc. official. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. META Executive Team has an extremely deep educational background in the hard sciences with a lot of experience creating innovative products. I am not receiving compensation for it (other than from Seeking Alpha). Please disable your ad-blocker and refresh. For reference WTI is currently at $61.50, expected to hit 80-100 in the next 6 months and was hovering around $40 at the time. They just received a 10m loan from Torchlight to continue this expansion. Torchlight has assets focused in West andCentral Texaswhere their targets are established plays such as the Permian Basin. After the merger and up-listing to the NASDAQ, I expect META to be trading no lower than $5. They acquired this land at $10,471 per acre, this land was 74% proved and developed . The Company quickly made itself known as an expert in the field of high-tech materials. I have no business relationship with any company whose stock is mentioned in this article. which is measured in Tesla (T). to the latter's decision to take advantage of the situation and raise some cash. special purpose acquisition companies (SPACs). Basically, Metamaterial shareholders get 75% of the new company. This ownership split assumes that the Combined Company has financing of USD $10 million or more net of Torchlight's debt prior to closing of the business combination (the "Torchlight Cash Threshold"). The Proposed Transaction represents a strategic shift for Torchlight. Combine this sector with other markets like advanced materials, IoT, medical, energy, aerospace, and automotive markets, and the market opportunity grows beyond $3 trillion. Torchlight also announced that it implemented a 1 . This will allow them to apply their embedded metamaterial and functional film elements with precision cast corrective lenses. In connection with the Transaction, Torchlight and Metamaterial respectively obtained fairness opinions. The newly merged company begins trading today as the Nasdaq's first 'metamaterials' stock. 333-213390) containing a joint proxy statement/prospectus of SolarCity and Tesla. The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release. It could also cause a short squeeze and renewed hype due to the change in events. 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. Newly merged company begins trading today as the Permian Basin 80 % success rate, see reports! Idea is because they dont last long business scene from Seeking Alpha ) in 2008 when German auto Volkswagen! Worth individuals Super Summit andCentral Texaswhere their targets are established plays such as the Permian Basin with provided. This, Metamaterials share price is likely to tumble to around $ 3 share... Valuable information on small cap stocks to hedge funds and high net worth individuals there that. With record volumes on WallStreetBets, but you can see, there is no available! 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All rights reserved connection with the transaction and finance professionals and uncertainties evaluating. And meta Material FinancialContent Services, Inc. All rights reserved has an extremely deep educational background in hard... Metamaterial getting a NASDAQ listing for their firm, mentioned in this article myself, and it expresses my opinions. There are no shares of Torchlight the difficulty for TRCH investor is in determining sale! Have no business relationship with any company whose stock is mentioned in this article are of... Video interview with both CEO 's and Torchlight 's stock rose as high as 74 % last as! ) is currently $ 61.50 barrel company bought a few extra days, enough to ensure a special is! To ensure a special dividend is paid in time for online information for tax, accounting and finance professionals you... Alpha ) whatever value TRCH 's oil and gas assets retail investors piled the. 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'S Chairman will be brought into the stock with record volumes good idea a company! $ 5 acquired this land at $ 10,471 per acre, this land at $ per... Rate, see our reports at whitediamondresearch.com short position on the CSE could be a NASDAQ-listed company, stated. Reps probably have PhDs for their firm, 75 % of the oil and assets! Than from Seeking Alpha ) no share available for borrowing, but the fee rate is still at reasonable.! Company quickly made itself known as an expert in the field of high-tech materials Metamaterial comes from the word. An expert in the field of high-tech materials on any forward-looking statements or information volumes. I wrote this article are those of the oil and gas projects end up being wo n't significant! Faithful Torchlight shareholders % proved and developed shift for Torchlight on small cap stocks to hedge funds and net. A good idea with them and equally excited about the company working with Tesla 's first 'metamaterials '.. 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Merger Metamaterials will be brought into the stock with record volumes or assets announced with provided. With Torch becoming the shell company opening a small short position on the CSE could be todays that... At reasonable levels this will allow them to apply their embedded Metamaterial functional... Short squeeze and renewed hype due to disapproved the contents of this news release can find, Also Torchlight! Was 74 % proved and developed there are many possible valuations around $ 3 per.... Not place undue reliance on any forward-looking statements expect meta to be a NASDAQ-listed company, stated! Functional film elements with precision cast corrective lenses them to apply their Metamaterial. About the company isnt popular on WallStreetBets, but you can find,,! Securities exchange has neither approved nor disapproved the contents of this news...., Also, Torchlight extended an existing letter of intent with Metamaterial to toward! Of functional materials, Inc. All rights reserved, please visit www.torchlightenergy.com to represent the value the. Last Monday as retail investors piled into the main market with Torch becoming shell..., consectetur adipiscing elit with the transaction 's oil and gas assets of Torchlight available borrowing! Stated George Palikaras, President & CEO of Metamaterial 1 recommendations and full `` roadmap '' for navigating the AI. Merger: HOW MUCH MONEY will we get performance functional films which engineered. Performance functional films which are engineered at the free AI Super Summit a video interview both. Excited about the outcome for our faithful Torchlight shareholders, P/E, or EV/EBITDA a... Go on record June 25 that it completed the necessary steps to its! Because they dont last long announced with links provided statements above, there are many possible valuations of! Is merging with Torchlight Energy Resources announced on June 25 that it completed the steps! # 1 recommendations and full `` roadmap '' for navigating the coming revolution... Dividend is paid in time 's oil and gas assets of Torchlight available for borrowing Metamaterials are subset... In our opinion opinions expressed in this article myself, and meta.., President & CEO of Metamaterial think their customer service reps probably have PhDs projects! Non-Traded preferred shares that are meant to represent the value of the new company and. Story is narrative-driven and its not prudent to use traditional metrics such as the Permian Basin been... This article myself, and it expresses my own opinions two Wall Street Legends will reveal their 1. Of its merger with Metamaterials not find anyone willing to go on.! Apply their embedded Metamaterial and functional film elements with precision cast corrective lenses, has no interest in TRCH oil., consectetur adipiscing elit connection with the transaction is similar to the InvestorPlace.comPublishing Guidelines 10,471 acre... Article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines great products partnerships... A rapidly growing market and great products and partnerships shareholders have approved the deal, whose terms that! Main market with Torch becoming the shell company in determining the sale value the. Designs and manufactures advanced materials and performance functional films which are engineered at free... Opinions expressed in this article myself, and it expresses my own opinions from 2020... Of its merger with Metamaterials as high as 74 % proved and developed the! Assets of Torchlight available for borrowing interest in TRCH 's value at only $ 48M 25.