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. Torchlight stock closed at $4.95 a share Friday, and Meta Material. Regarding valuation, I think its nearly impossible to come up with numbers for rapidly growing startups. At TRCH's current share price, it is trading at a whopping 1050% premium to its arbitrage value. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. However, there are still some Metamaterial shares available in Canada. Valuation The value oil drilling acreage is a moving target after the price of crude oil started collapsing in March of 2020. 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. Torchlight also announced that it implemented a 1-for-2 reverse split of TRCH stock. There has been a worldwide influx of retail investors and this has led to unusual developments involving meme stocks, short squeezes, and the rise of the infamous WallStreetBets subreddit. Aerospace and Defense- META has extensive experience providing laser protection, de-icing and de-fogging products to aviation companies. 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. Torchlight will loan to Metamaterial an additionalUS$500,000, in exchange for an unsecured promissory note in substantially the same form as the 8% unsecured convertible promissory note that evidences Torchlights loan to Metamaterial ofUS$500,000onSeptember 20, 2020. Torchlight urges you to consider those risks and uncertainties in evaluating its forward-looking statements. Google finance notes a 21.48% year over year revenue increase and META claims a $121m a year revenue potential over the next 18 months. I am long in TRCH at 36K shares and long in MMATF at 60K shares. There is no share available for short selling at Torchlight. Sign up below to get this incredible offer! It sounds like the merger vote will occur sometime around mid-March. design and manufacturing of complex films and other materials called metamaterials, which can manipulate and utilize light and other forms of energy. "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. Prior to closing, Torchlight must raise gross proceeds of at least$10 millionthrough the issuance of common stock or securities convertible into or exercisable for common stock, less the value of loans Torchlight has made to Metamaterial. Torchlight legacy shareholders will be entitled to a distribution of any values attributable to the sale of Torchlight's existing oil and gas business asset (net of Torchlight's debt, and closing expenses incurred in connection with such sale, subject to a 10% holdback to be held for a 12 month period to address any potential liabilities relating to the sale of the oil and gas assets of TRCH's pre-closing business). META has a total of 52 granted and 37 pending patent applications, including 26 in the United States and 63 in 18 other countries around the world. On the 14th of December TRCH announced that it was going to do a reverse merger with Metamaterials, which is due to be done by February this year. Readers are cautioned to not place undue reliance upon any such forward-looking statements, which speak only as of the date made. After the merger is complete META will be the company name and it will be listed on the NASDAQ. First, shareholders valued the large and promising portfolio of technologies and patents. 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. 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. Investors are keeping close watch on Torchlight Energy Resources after the stock extended June gains on Friday on news of a dividend payment, a TRCH stock split and the finalization of a merger with Metamaterials. This discovery coincided with economic collapse of oil due to Covid crisis. However, something unusual has been happening over the past few days. Accordingly, readers should not place undue reliance on any forward-looking statements or information. META is an award winning Global Cleantech 100 company with products that support sustainability by doing more with less; they encompass lightweight, sustainable raw materials and processes which consume less energy and offer more performance. META's portfolio comprises 28 patent families, 19 of which are granted. As shown in the arrangement agreement filing, if one party calls off the merger, they must pay a "Termination Payment" of $2M. It's a totally unrelated company to TRCH's oil and gas exploration business. Metamaterials Technologies, known as META ( MMATF :US MMAT :CAN) is currently trading at $2.66 as of 02.27.2021. For those who . 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. See the 3rd party verified return on each of our bearish reports over the last 24 months at: https://breakoutpoint.com/as-summary/white-diamond-gvmtg/To inquire about becoming a premium subscriber, send a PM here or email us at research@whitediamondresearch.com.Follow us on twitter @whiteresearch. It's a. His Substack newsletter,TLV Strategist, covers the Israel business scene. The short interest had been steadily increasing over the past few months. 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. As stated in the announcement: "Prior to the merger, TRCH shareholders will receive a dividend of proceeds from selling TRCH's oil and gas assets. Recall that the company plans to merge with Metamaterial (OTCMKTS: MMATF ), which makes advanced materials. 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).". These will be ultra-thin, light, flexible, can be applied to flat or curved surfaces and will be able to add onboard power and charging. read more. As shown in Metamaterial's executive statements above, there is no mention at all of any value to TRCH or its assets. 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. InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. We welcome you to check back often as we continue on our path towards a cleaner, more green, zero-emissions future. 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. 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. 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. That short squeeze lasted just one week. However, with TRCH's recent conversions of debt to equity and equity raise, its current market cap is a whopping 143M x $3.90 = $558M. "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. What could be a risk, is if the merger is called off. All quotes delayed a minimum of 15 minutes. META has also partnered with Lockheed Martin and the Canadian Government's Sustainable Development Technology Canada (SDTC) fund to develop metaSOLARTM a new solar energy product suitable for the transportation industry. to the latter's decision to take advantage of the situation and raise some cash. Metamaterial is getting a listing on NASDAQ in an easy way, while Torchlight investors get some money for their shell and get to keep the energy business. Of . Metamaterial Inc. is also developing unique microwave imaging algorithms in collaboration with King's College . Torchlight cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. 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. 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. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and other forms of energy. Metamaterial operates under the META brand and is a smart materials and photonics company. I think the main risk for the bear case is a second short squeeze. See here for a complete list of exchanges and delays. I think the short squeeze is likely to end soon thanks to the latter's decision to take advantage of the situation and raise some cash. Investors appear to be responding to rumors about the company working with Tesla. Is there a short squeeze? If a Definitive Agreement is entered into, it is expected that the closing of a transaction will include customary closing conditions, including NASDAQ and CSE approval and approval by the shareholders of both companies, in addition to the closing conditions described above. 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. In 2019 META acquired North, Inc and their roll-to-roll holographic manufacturing tech. Please. 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. Pursuant to the LOI, both Torchlight and META are prohibited from directly or indirectly soliciting or participating in any discussions regarding a sale of their business until November 2, 2020, unless extended in writing by both parties. 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. In March of 2020, Torchlight decided to pivot their entire operation and and to divest all of oil and gas assets and to embark on a reverse merger with a future focused company. Orogrande Basin 134,000 acre lease 72.5% interest (97,150 net acres), the site has had several successful test wells drilled. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Torchlights Shareholders in connection with the proposed business combination will be set forth in the proxy statement/prospectus for the proposed business combination when available. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (OTCPK:VLKAF) briefly became the most valuable listed company in the world with a market capitalization of 300 billion. In my view, when these short squeezes are caused intentionally, there could be multiple waves. The following is the 3-month chart for TRCH: TRCH closed at $0.46 on 12/17/20. METAs unique Nanoweb films are 98% transparent, meaning that they can be placed on any glass. 1125 N. Charles St, Baltimore, MD 21201. How can investors take part in this move? Torchlight shares will be static, METAs shares will be adjusted to maintain the ratio of 75% META share ownership and 25% Torchlight share ownership. They have also created electromagnetic interference protection that can play a large roll in infrastructure defense. Ive already covered one short squeeze selling opportunity in 2021. Although META 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. Entry into a transaction will be subject to satisfactory completion of due diligence by both parties, negotiation of a Definitive Agreement and audits of Torchlight and META. I have no business relationship with any company whose stock is mentioned in this article. have over 50,000 views each. The same is happening at the moment with Torchlight. , the company is being covered and promoted by several channels including Moon Market, Alpha Status Stocks, DarrenJacksonTV, Trading With CJ, and Voorhees Trading. "I am excited to work with them and equally excited about the outcome for our faithful Torchlight shareholders. It will likely be spun off onto the OTC exchange. The whole stock market depends only on whether there are more shares than idiots or more idiots than shares. 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. However, I think things have gotten out of hand with the valuation of Metamaterial and it has little to do with the company itself. I have no business relationship with any company whose stock is mentioned in this article. Liquidity is low on the OTC market and there is no data on the availability of Metamaterial for sale. The company detailed its paying of a special dividend to its shareholders, as well as a reverse stock split. Ahead of the merger, Torchlight paid the special Series A Preferred Stock dividend on a 1-for-1 basis to its stockholders of record on June 24. I have spoken with many industry experts and received varying price targets that trended toward the upper side of the values I am presenting. On December 14, 2020, the companies signed an agreement for the . If it's a value stock - great. The Company quickly made itself known as an expert in the field of high-tech materials. Oil prices are expected to rise to $80-$100 a barrel in the next six months. Torchlight investors will get, non-traded preferred shares that are meant to represent the value of the latters oil and gas assets. Torchlight Energy is currently an oil and gas exploration company. This transaction will enhance our ability to pursue a broad range of opportunities and attract additional world-class talent. 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. 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. Using that market cap, that puts TRCH's value at only $48M x 25% = $12.12M. Trading on the OTC, TRCH won't be able to command nearly the valuation or attention that it could on the Nasdaq. Just look at the share price and volume for Torchlight. META has engaged Hamilton Clark as financial advisor on its behalf. With this in mind, it seems likely that Metamaterials share price will go back to around the $3 level in the near future. "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. Using that market cap, that puts TRCH's value at only $48M x 25% = $12.12M. Opening a small short position on the CSE could be a good idea. Upon completion of the Proposed Transaction, shareholders of META are expected to hold a 75% interest in the combined entity. Its a win-win situation for both. 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. Metamaterial has some interesting products at the moment. MMAT Stock: Meta Materials Hits Nasdaq as TRCH Stock Merger Closes, 5 Hypergrowth Stocks With 10X Potential in 2023, paid the special Series A Preferred Stock dividend, How to Tell if an AI Company Is Legit or Selling Snake Oil, Expect the Amazon Stock Slump to Continue, Louis Navellier and the InvestorPlace Research Staff. Which can manipulate and utilize light and other forms of energy 1125 N. Charles,! Play a large roll in infrastructure defense at the nanoscale to control light and other materials called metamaterials which. Range of opportunities and attract additional world-class talent ), the site has several... 36K shares and long in MMATF at 60K shares the outcome for our faithful torchlight shareholders a share,. Get, non-traded preferred shares that are meant to represent the value of the date made to with! The site has had several successful test wells drilled his Substack newsletter TLV... 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