Torchlight's stock price surged following the announcement of its merger with Metamaterials. "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. Several seem to see an end to TRCH stock frenzy, in part due to the impending merger and a possible short squeeze ahead of the transaction. They have also created a radio-wave imaging system that has a wide array of uses but can be utilized as a safe, initial-step screening for breast cancers. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. 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. Here is a DD write up and estimate by user u/Mr_Delmont. 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. Is there a short squeeze? The reason why the short squeeze at Torchlight is likely to end soon is because the company is taking advantage of the irrational share price increase and has launched a $250 million share offering. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. While Torchlight's refinement of strategy 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. Oil prices are expected to rise to $80-$100 a barrel in the next six months. 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. Merger Metals LLC has over 40 years of Industry Experience. There is no share available for short selling at Torchlight. Such persons can also read Torchlights Annual Report on Form 10-K for the fiscal year endedDecember 31, 2019, for a description of the security holdings of its officers and directors and their respective interests as security holders in the consummation of the transactions described herein. Metamaterial designs, develops, and manufactures. 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. Disclosure: I am/we are short TRCH. 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. Looking forward to March 12th. 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. PLANO, TX and HALIFAX, NS / ACCESSWIRE / September 21, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH), an oil and gas exploration company ("Torchlight") and Metamaterial Inc. ("META") (CSE:MMAT), a developer of high-performance functional materials and nanocomposite products, announced today the execution of a non-binding letter of intent ("LOI", signed on September 15, 2020), for Torchlight to acquire 100% of META and to divest within the first half of 2021 Torchlight's oil and gas assets for the benefit of Torchlight's legacy shareholders (the "Proposed Transaction"). Preferred Stock Dividend to be Issued to Torchlight Shareholders Prior to Closing. 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. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. With this, Metamaterials share price is likely to tumble to around $3 per share. Winkler Project 1,080 gross acres, 12.5% WI (non-operated) under contract for $450k (350k to Torchlight). 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). Metamaterials Technologies, known as META ( MMATF :US MMAT :CAN) is currently trading at $2.66 as of 02.27.2021. META is currently trading at $2.66 I anticipate a near doubling with a successful merger vote. As shown in Metamaterial's executive statements above, there is no mention at all of any value to TRCH or its assets. META is changing the way we use, interact with, and benefit from light and other forms of energy. The story is narrative-driven and its not prudent to use traditional metrics such as P/S, P/E, or EV/EBITDA. Pertinent deal terms are as follows: Torchlight and Metamaterial invite all interested parties to view a webcast introduction of George Palikaras, CEO of META and an overview on META. 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. All rights reserved. Date announced Permian deal Value per acre (USD), March 2018 Concho Resources-RSP Permian $75,504, August 2018 Diamondback Energy-Ajax Resources $33,008, July 2019 Callon Petroleum-Carrizo Oil & Gas $16,547, December 2019 WPX Energy-Felix Energy $11,965, October 2020 ConocoPhillips-Concho Resources $10,471, Plunging shale acreage values may create a new Permian M&A wave 11.12.2020, 2021 Oil and Gas M&A Outlook | Deloitte US. Many emerging technologies have historically been adopted by the automotive industry to improve performance, safety and comfort. Of . Metamaterial is merging with this company, its valuation has been soaring too. 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. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and other forms of energy. 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. The META Note is for a 24-month term and bears interest at 8%, with principal and interest due in a lump sum at maturity. Aerospace and Defense- META has extensive experience providing laser protection, de-icing and de-fogging products to aviation companies. This year is weird. We look forward to driving significant opportunity for the combined company and all shareholders in our mission to make every product that we produce smarter and more sustainable by harnessing the power of light and advanced material innovations.. Two of the project sites are under contract to be sold and the largest asset, the Orogrande site, is likely an extension of the Permian Basin and is being marketed to major and super major oil companies. Metamaterial shareholders may elect to receive either shares of Torchlight common stock or shares of a Canadian subsidiary of Torchlight, which will be exchangeable into Torchlight common stock (the Exchangeable Shares). According to META, the 2nd generation manufacturing line is capable of 100,000+ units per month, to support AR and other holographic products, such as automotive HUD displays, laser glare protection, optical filters, diffractive optics, and other photonic applications. Note that the company isn't promoting the business itself, but this is being done by a significant number of retail investors and traders. Metamaterial Inc. is also developing unique microwave imaging algorithms in collaboration with King's College . For those who . The merger was analyzed by SA contributor Safety In Value back in March. I think the short squeeze is unlikely to last for long and Metamaterial looks like a sell. I wrote this article myself, and it expresses my own opinions. TRCH shareholders will receive a 25% equity interest in the combined company, while MMAT shareholders will receive a 75% interest. As stated in this recent Motley Fool article: On Feb. 16 Torchlight Energy announced that one of its lenders had converted $1.5 million worth of debt into 1 million shares of the company's stock. Please. That was a huge move for the exploration and production company because it helped to clean up Torchlight's balance sheet. At one point, TRCH stock climbed by more than 600 percent in February from December 2020 due to . They have been investing money into research and development, IP acquisitions and scaling their operations. Metamaterial is listed on the CSE. as legal advisors. With this in mind, it seems likely that Metamaterials share price will go back to around the $3 level in the near future. Transformational Deal to Accelerate Growth, Scale and Commercialization of Metamaterials. Copyright Combine this sector with other markets like advanced materials, IoT, medical, energy, aerospace, and automotive markets, and the market opportunity grows beyond $3 trillion. Sign up below to get this incredible offer! The reverse split became effective after market close on June 25. META is headquartered inHalifax, Nova Scotiaand has R&D and Sales offices inLondon, UKand Silicon Valley. - YouTube 0:00 / 12:23 #Metamaterials #TRCH Metamaterials (MMATF) and Tesla (TSLA) Rumors | Why it COULD MAKE. However, something unusual has been happening over the past few days. I think the short squeeze is likely to end soon thanks. ), 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. I am not receiving compensation for it (other than from Seeking Alpha). As well as the conversion of the company's debt to equity. CSO and co-Founder Themos Kallos is Chief Science Officer with Ph.D. in Electrical Engineering with expertise in applied physics, metamaterials, wireless communications, and electromagnetic simulations. 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 detailed its paying of a special dividend to its shareholders, as well as a reverse stock split. that it inked an agreement with a fund named Lincoln Park Capital to sell shares for up to $20.8 million. Regarding valuation, I think its nearly impossible to come up with numbers for rapidly growing startups. META is changing the way we use, interact and benefit from light. - PennyQueen, Projected Markets for Metamaterials to 2023, Smart Materials: Opportunities in Structural Electronics and Electrics to 2030, Article on GlobeNewswire About Global Photovoltaic Markets, Worldwide Revenue from Electric Vehicles Since 2010, Internet of Things Forecasts and Market Estimates, largest domestic newfield discovery in over 30 years, under contract for $450k (350k to Torchlight), Conoco Phillips acquired Concho Resources. Metamaterials CEO,George Palikaraswill be appointed CEO of the combined company, along with the appointment ofKenneth L. Riceas CFO and Executive Vice President. Orogrande Basin 134,000 acre lease 72.5% interest (97,150 net acres), the site has had several successful test wells drilled. 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 . We believe the reason for this is speculation over the merger and sale of the assets. 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. As shown in the arrangement agreement filing, if one party calls off the merger, they must pay a "Termination Payment" of $2M. 1125 N. Charles St, Baltimore, MD 21201. , this is what I like to see in a startup a rapidly growing market and great products and partnerships. I think the main risk for the bear case is a second short squeeze. View Details 1425 W. 12th Place Suite 101 Tempe, AZ 85281 | Office: (623) 388-3634 sales@mergermetals.com Its a win-win situation for both. The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release. Torchlight has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. If you have an ad-blocker enabled you may be blocked from proceeding. That equals $251.6/1.27 = $198M USD. Metamaterial designs, develops, and manufactures advanced materials specializing in nanocomposites, nanofabrication, and machine learning to control light and electromagnetic waves. How can investors take part in this move? That would bring a per share value to TRCH of $12.12M/143M = ~$0.08. The difficulty for TRCH investor is in determining the sale value of the oil and gas assets of Torchlight. Using that market cap, that puts TRCH's value at only $48M x 25% = $12.12M. Colleran, who has previously served as CEO at ventures including Impinj and AnswerDash, said Lumotive is pursuing a step-by-step plan to catch the rising tide. "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. Torchlight urges readers to consider those risks and uncertainties in evaluating Torchlight's forward-looking statements. - Andr Kostolany. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Many of META's functional materials and metamaterials are designed to increase the efficient use of light and other energy forms. META Executive Team has an extremely deep educational background in the hard sciences with a lot of experience creating innovative products. 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. TRCH will sell its assets or spin them off before the business combination happens; the combined company will get none of TRCH's assets. GameStops January short squeeze lasted just around two weeks and ended just as mainstream media picked up the story. 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. 2023 InvestorPlace Media, LLC. In 2018 META was awarded "Best New Product in Commercial Aviation" by Aviation Week Network at the 63rd Annual Laureate Awards, for metaAIR, a Laser Strike Protection solution to protect pilots from harmful laser attacks without interfering with visibility. This transaction will enhance our ability to pursue a broad range of opportunities and attract additional world-class talent. Energy Applications META is currently working with Lockheed Martin and MTI to create metaSolar a NanoWeb based solar thin films that will increase solar cell efficiency by capturing light from all angles and light that would otherwise be reflected. In November 2020, Torchlight extended an existing letter of intent with Metamaterial to work toward a definitive merger agreement. quotes delayed at least 15 minutes, all others at least 20 minutes. In my view, when these short squeezes are caused intentionally, there could be multiple waves. 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. It has appreciated substantially. Theres even room for more lines. Email:[emailprotected]. There can be no assurances that a transaction will be consummated as a result of the LOI. These statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "strategy," "goal," or "planned," "seeks," "may," "might", "will," "expects," "intends," "believes," "should," and similar expressions, or the negative versions thereof, and which also may be identified by their context. The assets of Torchlight energy include three project sites, an experienced management team, access to capital, and a NASDAQ listing. quotes delayed at least 15 minutes, all others at least 20 minutes. Torchlight also said on Friday it paid a special dividend to its stockholders of record on June 24 and that it implemented a previously approved 1 for 2 reverse stock split. Torchlight Energy (TRCH) is currently trading at $2.48, with a 356.15m market cap, 143.61m shares. With this, Metamaterials share price is likely to tumble to around $3 per share. They are composite structures, consisting of conventional materials such as metals and plastics, that are engineered. 1125 N. Charles St, Baltimore, MD 21201. 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. Post from CEO of Metamaterial saying first step of merger is complete. What could be a risk, is if the merger is called off. For additional information on Torchlight, please visitwww.torchlightenergy.com. Theres even room for more lines. 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