![]() In other words, at this moment, the special dividend could be valued anywhere above $0.01.Īnalysts are estimating a range of $1.00 to $20.00 as the value of a preferred share. The value of the preferred shares for shareholders of record on June 24 will be announced June 25th, so we don’t have much longer to wait to see a price for those preferred shares. With about 145 million shares outstanding, that works out to roughly $0.65 per share.īefore the deal with Metamaterial closes–set for next week–Torchlight has agreed to pay its shareholders a special dividend in Series A Preferred Stock at a ratio of 1-to-1 for each common share of Torchlight. The assets that Torchlight is selling are worth a generously estimated $94 million. Metamineral wants a listing on Nasdaq and that is why it is buying an oil company with no proved reserves, a history of losses, and no apparent future on its own. The filing also contained a “going concern” warning related to a net loss for the year of $12.8 million and accumulated losses of nearly $112 million since the company’s founding in 2007. What is the value of Torchlight’s assets? According to the company’s 10-K filing for 2020, the total value of the company’s proved reserves is zero. Since December 14, Torchlight stock has soared by 1,500%. ![]() The stock closed at $0.62 on December 14, at $3.58 on June 14, and at $9.92 just one week later, ladling on another 177% in value. As of June 14, Torchlight stock had added more than 400% to its share price over that six-month period. The deal with Metamaterial was announced on December 14, 2020. On May 28, short interest in the stock was around 15.4 million shares (about 10.6%). Short interest in Torchlight peaked at 17.9 million shares (about 12.2% of shares outstanding) in the reporting period ended April 15. That’s a fair comment and here’s our response.įirst, one comment on the short squeeze. ![]() A reader commented that we neglected to mention that the company is selling off assets as it prepares to close its reverse merger with Canada-traded Metamaterial Inc. Monday’s look at Torchlight Resources suggested that a short squeeze may have had something to do with the company’s skyrocketing share price. With the announcement of the $150 million increase, Torchlight’s stock had tumbled more than 20% by noon Tuesday. Since June 16, Torchlight has sold more than 11.7 million new shares for an aggregate price of $100 million. In a federal filing Tuesday morning, the company reported that it had reached an agreement with Roth Capital to increase an “at-the-market” offering of new shares from $100 million to $250 million. ( NASDAQ: TRCH) couldn’t get any weirder, the company doubled down on the weirdness. Just when you thought the story of Torchlight Energy Resources Inc. ![]()
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