US oil sector shareholdings Torchlight Energy Resources (NASDAQ: TRCH at https://www.webull.com/quote/nasdaq-trch) decreased early trading on Monday by as much as 16 per cent. While dropping oil and natural gas prices did not help today, the news drop was probably an update on Metamaterial’s proposed reverse merger
And what are we talking
Torchlight reported in December that it entered into a very complicated reverse merger agreement with Metamaterial, a Canadian specialty materials firm.
Indeed, Metamaterial would ultimately own 75% of the joint venture, with the remainder being held by NASDAQ: TRCH partners. Metamaterial management will run the business, giving it a loophole of various kinds into a US listing after the transaction has been completed.
This being said, there are a range of terms, including preferred shareholders of Torchlight that allow it to engage financially in the proposed selling of energy assets of Torchlight that do not adhere to the business plans of Metamaterial. All in all, here are several moveable pieces.
The initial aim was to conclude the deal last month, which was revealed during the conference call for the contract. It has arrived and it is gone, with the release today further pushing the end. The press release states that as businesses strive to achieve all the requisite permits and schedules, the expectation is that they will close in the second quarter.Investors didn’t seem to like this little knowledge and sold the shares, maybe reading the delay would make it more difficult than predicted to consummate this union.
What for now?
A variety of factors now drive the stock of Torchlight Energy. It is an oil and gas boiler, on the one hand, so that energy prices are significant. In light of the proposed priority sharing problem, this will also apply after the merger involving the dispose of those properties. Then there is the true fusion, which would turn the business into something totally different.In the present scenario Torchlight Energy is a special game, which perhaps only fits more proactive investors who are prepared to play a very active part in their portfolio.
Located in the Basin
Torchlight, like many American oil companies, is centrally located in the city of Permian Basin, Texas, with a host of oil-rich basins in itself.Today, with a market capitalization of approximately $322 million Torchlight NASDAQ: TRCH Energy may be very limited but does not underestimate the firm as a small energy market participant.
the pullback came as a retreat of stock price for $2.14.It is encouraging to hear that there are no threats to de-listing stocks from Nasdaq at present. The bulls will hopefully be able to lift the $4 mark and keep it the next time. You can check more stocks like nyse rkt at https://www.webull.com/quote/nyse-rkt before investing.