(Source: Interactive Brokers, using a paper trading account). Additional details will be announced if and when a Definitive Agreement is reached. "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. and unknown risk factors and uncertainties affecting the companies, including risks regarding the ability of the parties to close the proposed transaction, 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 managements ability to manage and to operate the business. With this reverse merger Metamaterials will be brought into the main market with Torch becoming the shell company. They acquired this land at $10,471 per acre, this land was 74% proved and developed . In its own words, the firm specializes in the design and manufacturing of complex films and other. I have spoken with many industry experts and received varying price targets that trended toward the upper side of the values I am presenting. Is this happening to you frequently? We specialize in the technology and healthcare sectors. Just look at the share price and volume for Torchlight. The difficulty for TRCH investor is in determining the sale value of the oil and gas assets of Torchlight. 29 2021, Published 1:58 p.m. Additional Information and Where to Find It. 1125 N. Charles St, Baltimore, MD 21201. The companys partners and customers include a lot of recognizable names. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. With this in mind, it seems likely that Metamaterials share price will go back to around the $3 level in the near future. However, something unusual has been happening over the past few days. like what happened at GameStop in March. I was also advised that the merger and acquisition market for oil and gas companies is still soft but that is expected to change quickly with the rise in oil demand and subsequent price. I am excited to work with the META team and equally excited about the outcome for our faithful Torchlight shareholders.. To learn more visit www.metamaterial.com. Torchlight has engaged Roth Capital Partners as financial advisor in connection with the transaction. Torchlight announced Friday that its. About Metamaterial Inc. META is changing the way we use, interact with, and benefit from light and other forms of energy. 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. With its four full-time employees, Torchlights business doesnt seem like it should attract the sort of social media love that it has. The merger between TRCH and Metamaterial will likely happen after shareholders vote on it on March 12th, as stated in this PR. I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at Torchlight. A place to find gems and meet new friends. I am not receiving compensation for it (other than from Seeking Alpha). The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Nasdaq That short squeeze lasted just one week. 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. If the exchange rate is 1 Metamaterial share for 3.6 Torchlight shares (as mentioned in the proxy filing), that would imply that each Torchlight share would get around $1.60 in value from the . 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 shall appoint the 5 remaining members of the Board, which members must include the required number of independent members to maintain the NASDAQ listing requirement. Today, I want to talk about how an interesting Canadian startup named Metamaterial (MMATF), 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:TRCH). The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines. The company isnt popular on WallStreetBets, but you can find, Also, Torchlight has been one of the most discussed stocks on. Torchlight has engaged Roth Capital Partners as financial advisor and Stikeman Elliott LLP and K&L Gates LLP as legal advisors, and Metamaterial has engaged Hamilton Clark and Cormark Securities as financial advisors and Fasken Martineau DuMoulin LLP andWilson Sonsini Goodrich& Rosati P.C. Special Dividend Intended to be Issued to Torchlight Shareholders at Closing. For additional information on META, please visitwww.metamaterial.com, This release includes forward-looking information within the meaning of Canadian securities laws regarding Metamaterial and its business, which may include, but are not limited to, statements with respect to the terms and anticipated timing of the proposed transaction, the intention to raise equity capital, the potential continued listing on the NASDAQ and the benefits thereof, the disposition of Torchlights oil and gas assets, the approval of the Transaction by the shareholders of Metamaterial, the business strategies, product development and operational activities of Metamaterial and Torchlight. Brooklyn ImmunoTherapeutics made a similar move. This February META acquired Interglass Technology AG of Switzerland, their IP and over 70 patents. The same is happening at the moment with Torchlight. The Combined Company shall use its commercially reasonable efforts to cause the Torchlight oil and gas assets to be sold by June 30th, 2021. Using that market cap, that puts TRCH's value at only $48M x 25% = $12.12M. Through this reverse merger Torchlight receives a 25% stake in META. Although the management of Metamaterial believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. 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. They have also created electromagnetic interference protection that can play a large roll in infrastructure defense. (Edited after IR clarification) The special dividend will be as of the record date, which has not been determined. Opening a small short position on the CSE could be a good idea. The Proposed Transaction represents a strategic shift for Torchlight. Copyright 2023 InvestorPlace Media, LLC. Typically, mechanical metamaterial properties are programmed and set when the architecture is designed and constructed, and do not change in response to shifting environmental conditions or application requirements. commented Ram Ramkumar, Metamaterial's Chairman. We are very excited to sign the definitive agreement with Metamaterial, statedJohn Brda, Torchlights CEO. In connection with the Transaction, Torchlight and Metamaterial respectively obtained fairness opinions. Valuation The value oil drilling acreage is a moving target after the price of crude oil started collapsing in March of 2020. Trading on the OTC, TRCH won't be able to command nearly the valuation or attention that it could on the Nasdaq. 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. Torchlight urges you to consider those risks and uncertainties in evaluating its forward-looking statements. 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. The company detailed its paying of a special dividend to its shareholders, as well as a reverse stock split. Such statements are based on the current expectations and views of future events of the management of META and are based on assumptions and subject to risks and uncertainties. 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. Aerospace and Defense- META has extensive experience providing laser protection, de-icing and de-fogging products to aviation companies. Our extensive technology platform is software and AI-design driven. Torchlight stock closed at $4.95 a share Friday, and Meta Material. There seems to be a short squeeze at Torchlight, with which Metamaterial is merging to list on NASDAQ. META's products are designed and manufactured with environmental sustainability as a high priority. Except as otherwise required by the federal securities laws, Torchlight disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in Torchlight's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. $12M is about the value of a clean empty shell Nasdaq listing. Eg Tesla (TSLA). It is intended to reposition Torchlight into the multi-billion-dollar Advanced Materials market1 as a global cleantech and technology leader. All statements that address operating performance or events or developments Torchlight Energy Resources expects or anticipates will occur in the future, such as stated objectives or goals, our refinement of strategy, our attempts to secure additional financing, our exploring possible business alternatives, or that are not otherwise historical facts, are forward-looking statements. This is an arranged marriage of sorts, it is the catalyst that will allow META to bring their disruptive technology to the forefront of several growing sectors, each at or near their inflection point. This transaction is similar to the popular deals involving. I intend to hold my shares for a minimum of two years. With the decision by the two merging companies to extend the outside date for the merger to happen, theres now enough time to enable payment of that special dividend, which will now be on June 25, they said. 3rd party valuation of potential recoverable hydrocarbons, 2. I am not receiving compensation for it (other than from Seeking Alpha). The whole stock market depends only on whether there are more shares than idiots or more idiots than shares. 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. ET. Shareholders have approved the deal, whose terms stipulate that Metamaterial shareholders will own 75% of the combined company, while Torchlight shareholders get 25%. All rights reserved. Its assets are practically worthless, and the stock is worth a fraction of its current market cap that has runup on the merger agreement. 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. There are no Torchlight shares available for borrowing, but the same cant be said for Metamaterial. Shareholders have approved the deal, whose terms stipulate that Metamaterial. that it inked an agreement with a fund named Lincoln Park Capital to sell shares for up to $20.8 million. The assets of Torchlight energy include three project sites, an experienced management team, access to capital, and a NASDAQ listing. For TRCH stock investors, the new focus adds an unfamiliar dimension to what had been an oil and gas exploration and production company based out of Plano, Texas, with a total of four full-time employees. , the company is being covered and promoted by several channels including Moon Market, Alpha Status Stocks, DarrenJacksonTV, Trading With CJ, and Voorhees Trading. The Plano, Texas-based company traces its roots back to Pole Perfect, incorporated in 2007 in Nevada to market feminine fitness dance studios utilizing the advantages of pole dancing. If it's a value stock - great. The Global Cleantech 100 is an annual guide to the leading companies and themes in sustainable innovation and features companies that are best positioned to solve tomorrow's clean technology challenges. Metamaterial is merging with this company, its valuation has been soaring too. It would probably fall on this news, as it has also appreciated significantly over the last few months likely due to the anticipated merger. Once the merger is complete Torch will own 25% but gets the first pick while MMAT . This release includes forward-looking information within the meaning of Canadian securities laws regarding META and its business, which may include, but are not limited to, statements with respect to the terms and anticipated timing of the Proposed Transaction, the intention to raise equity capital, the potential continued listing on the NASDAQ, the disposition of Torchlight's oil and gas assets, the business strategies, product development and operational activities of META and Torchlight. Holders of Exchangeable Shares will be entitled to cast votes on matters for which holders of Torchlight common stock are entitled to vote and will be entitled to receive dividends that are economically equivalent to the dividends declared by Torchlight with respect to its common stock. Cardano Dogecoin Algorand Bitcoin Litecoin Basic Attention Token Bitcoin Cash. 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. On YouTube, the company is being covered and promoted by several channels including Moon Market, Alpha Status Stocks, DarrenJacksonTV, Trading With CJ, and Voorhees Trading. At TRCH's current share price, it is trading at a whopping 1050% premium to its arbitrage value. Merger Metals LLC has over 40 years of Industry Experience. See here for a complete list of exchanges and delays. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (. The market for metamaterials is almost non-existent at the moment but is projected to grow to $10.7 billion SAM by 2030. CTO and Chairman Dr. Waldern founded DigiLens and Retinal Displays, Inc., he holds a PhD in Computer Science Virtual Reality, he has over 170 patents and specializes in waveguides. Here is a DD write up and estimate by user u/Mr_Delmont. TRCH stock had more than doubled this month. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Oil prices are expected to rise to $80-$100 a barrel in the next six months. However, there are still some. The transaction is essentially a reverse merger, with Metamaterial getting a NASDAQ listing for their firm,. Whatever value TRCH's oil and gas projects end up being won't be significant in our opinion. The company stated that it believes it will be positioned to capture a significant portion of this market by being able to mass manufacture, on a cost-effective basis, the required holographic optical components for the augmented reality smart glasses market. 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. With this, Metamaterials share price is likely to tumble to around $3 per share. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. - Disclosure: I am not a financial adviser. TRCH has risen as much as 400% since the beginning of the year, and has doubled over the last week. We don't think the spinoff will end up being worth much more than what TRCH shares were worth in November, which was about $0.25-$0.40 per share. I have no business relationship with any company whose stock is mentioned in this article. . Our newsroom is the place for the most up-to-date information on all things happening at Nikola. Winkler Project 1,080 gross acres, 12.5% WI (non-operated) under contract for $450k (350k to Torchlight). META is headquartered in Dartmouth, Nova Scotia and has offices in London, UK and Pleasanton, California. Several of the videos on Torchlight have over 50,000 views each. On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Although the management of META believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. 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. ), 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. After the merger and up-listing to the NASDAQ, I expect META to be trading no lower than $5. With and end of year range of $8-$20 depending on production numbers and new partnerships. The newly merged company begins trading today as the Nasdaq's first 'metamaterials' stock. However, a termination of the merger would likely a be a bad event for Metamaterial's share price, because then it would be stuck trading on the Canadian exchange and would have to find a new Nasdaq reverse merger candidate. quotes delayed at least 15 minutes, all others at least 20 minutes. Is there a short squeeze? No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. A video interview with both CEO's and Torchlight's Chairman will be available this week and separately announced with links provided. Post from CEO of Metamaterial saying first step of merger is complete. You can view it, Metamaterial shareholders get 75% of the new company. Torchlight Energy Resources, Inc. (TRCH), based inPlano, 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. 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