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. 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. Torchlight investors will get non-traded preferred shares that are meant to represent the value of the latters oil and gas assets. "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. Special Dividend Intended to be Issued to Torchlight Shareholders at Closing. The dividend will be one preferred share on a pro rata basis of the holding company holding the net proceeds (or assets if they have not yet sold). - YouTube 0:00 / 12:23 #Metamaterials #TRCH Metamaterials (MMATF) and Tesla (TSLA) Rumors | Why it COULD MAKE. META is changing the way we use, interact and benefit from light. Crypto. META has a growing patent portfolio and is currently developing new materials with diverse applications in concert with companies in the automotive, aerospace, energy, consumer electronics and medical industries. There seems to be a short squeeze at Torchlight, with which Metamaterial is merging to list on NASDAQ. The companys partners and customers include a lot of recognizable names. 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. Combine this sector with other markets like advanced materials, IoT, medical, energy, aerospace, and automotive markets, and the market opportunity grows beyond $3 trillion. META is changing the way we use, interact with, and benefit from light and other forms of energy. 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 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. A video interview with both CEO's and Torchlight's Chairman will be available this week and separately announced with links provided. All statements in this release that are not based on historical fact are "forward looking statements." META's products are designed and manufactured with environmental sustainability as a high priority. If the dividend or share buyback yield is high - even better. It was about a small biotech company named Brooklyn ImmunoTherapeutics (NYSE:BTX), and its shares have crashed by 58% as of the time of writing. Metamaterial designs, develops, and manufactures advanced materials specializing in nanocomposites, nanofabrication, and machine learning to control light and electromagnetic waves. The following is the 3-month chart for TRCH: TRCH closed at $0.46 on 12/17/20. 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 isnt popular on WallStreetBets, but you can find, Also, Torchlight has been one of the most discussed stocks on. which is measured in Tesla (T). Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Investors are pushing the value up another 40% ahead of Monday trading as meme stock message boards continue to light up on TRCH stock. All articles are my opinion - they are not suggestions to buy or sell any securities. Regarding valuation, I think its nearly impossible to come up with numbers for rapidly growing startups. Again, assuming that TRCH's assets are worthless and not including any special dividend, if the merger happened today, TRCH shareholders would face a 90% loss on their investment. This February META acquired Interglass Technology AG of Switzerland, their IP and over 70 patents. 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. I have no business relationship with any company whose stock is mentioned in this article. METAs unique Nanoweb films are 98% transparent, meaning that they can be placed on any glass. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. I intend to hold my shares for a minimum of two years. Therefore, they will be spun-off into another company. This year is weird. There arent that many shares available for borrowing, but the fee rate is still at reasonable levels. TRCH stock had more than doubled this month. They have also created electromagnetic interference protection that can play a large roll in infrastructure defense. Neither META or Torchlight has incurred any finders fees in association with this transaction. Only the Nasdaq listing. Upon closing, these two bridge loans, including the aggregate principal and unpaid interest, are to be included in, and credited against, the$10 millionpre-closing financing described above, with such notes to be deemed cancelled and paid in full. The stock price of Torchlight Energy Resources Inc (NASDAQ: TRCH) is trading at over 10% pre-market as of 7:14 AM ET. $12M is about the value of a clean empty shell Nasdaq listing. We are very excited to showcase how metamaterials go beyond conventional materials and chemistry, to offer new and highly sustainable solutions with semiconductor precision, at kilometer scale.. NASDAQ is the worlds premier technology exchange, providing us with the best platform to expand awareness of Metamaterial on the global stage and fully realize the value of our portfolio of innovative, sustainable products. commented Ram Ramkumar, Metamaterials Chairman. 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. 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. Note that the company isn't promoting the business itself, but this is being done by a significant number of retail investors and traders. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and other forms of energy. - Andr Kostolany. I am not receiving compensation for it (other than from Seeking Alpha). Metamaterial closed at only $0.58 on 12/14/20. Readers are cautioned to not place undue reliance upon any such forward-looking statements, which speak only as of the date made. 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. Shares of Meta Material Inc (MMAT.O) gave up premarket gains to fall 20% on Monday, the first day of trading after a merger that saw the niche hi-tech materials maker swallow Torchlight Energy . 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. 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). Merger Metals LLC has over 40 years of Industry Experience. Recall that the company plans to merge with Metamaterial (OTCMKTS: MMATF ), which makes advanced materials. "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. I wrote this article myself, and it expresses my own opinions. 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. Our Standards: The Thomson Reuters Trust Principles. How can investors take part in this move? Looking like March 12 for merger date? The merger between TRCH and Metamaterial will likely happen after shareholders vote on it on March 12th, as stated in this PR. As of this date certain stockholders of each of Torchlight and Metamaterial have executed customary voting and support agreement pursuant to which persons representing approximately 16% of Torchlight's and approximately 48% of Metamaterial's outstanding voting power have agreed to vote in favor of the transaction. 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. 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. The reason why investing in short squeezes is a bad idea is because they dont last long. Torchlight Energy is currently an oil and gas exploration company. In November 2020, Torchlight extended an existing letter of intent with Metamaterial to work toward a definitive merger agreement. Torchlight cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. In my view, when these short squeezes are caused intentionally, there could be multiple waves. At the time of the merger announcement, on the close of 12/14/20, Metamaterial was valued at much less. Copyright 2023 InvestorPlace Media, LLC. Disclosure: I am/we are short TRCH. Following the closing of the Transaction, the board of directors of the combined company will be comprised of 7 members, one of whom is to be appointed by Torchlight, a second to be jointly appointed by Metamaterial and Torchlight and the remaining 5 to be appointed by Metamaterial. 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. Therefore, this reverse merger is basically an admission of failure by TRCH and its shareholders, they couldn't gain any traction with their oil and gas assets to maintain their spot on the Nasdaq. The deal includes plans to divest the legacy energy assets. like what happened at GameStop in March. 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. 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. I am not receiving compensation for it (other than from Seeking Alpha). For additional information on Torchlight, please visit www.torchlightenergy.com. "We recognize the significant value in having a national exchange listing in the United States that will provide META with better access to the capital markets," commented George Palikaras, Metamaterial's President and Chief Executive Officer. We believe this Transaction provides our shareholders with the best opportunity moving forward. 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. 1125 N. Charles St, Baltimore, MD 21201. 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. $12M is about the value of a clean empty shell Nasdaq listing. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I think the main risk for the bear case is a second short squeeze, like what happened at GameStop in March. 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. However, something unusual has been happening over the past few days. With its four full-time employees, Torchlights business doesnt seem like it should attract the sort of social media love that it has. InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. The new company, Meta Materials Inc., will begin trading on the Nasdaq after Monday's opening bell under the ticker symbol MMAT. While they do have revenue and have partnered with major companies (Samsung, Boeing, Airbus), I am thinking of them more in terms of a pre-revenue IPO. ), 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. 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. 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. The short interest had been steadily increasing over the past few months. 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. Stoking some of the chat is a merger announcement on June 11 regarding Torchlight and Metamaterial (OTCMKTS: MMATF ), which makes advanced materials. This will allow them to apply their embedded metamaterial and functional film elements with precision cast corrective lenses. Ultimately, the deal is worth over $70 million.. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. We predict the spin-off company will be put into an OTC stock. 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. Copyright 2023 InvestorPlace Media, LLC. Metamaterial designs, develops, and manufactures advanced materials specializing in nanocomposites, nanofabrication, and machine learning to control light and electromagnetic waves. Today, I want to talk about how an interesting Canadian startup named Metamaterial (. META's innovations have been reported in popular technology magazines such as Wired.com "Bizarre New Materials Could Make Bendy Phones That Work" and the Financial Times which listed the category of metamaterials in their "50 Ideas To Change The World" in a special annual report. GameStops January short squeeze lasted just around two weeks and ended just as mainstream media picked up the story. Metamaterial and it has little to do with the company itself. In November 2010, Pole Perfect bought Torchlight Energy and abandoned all of its previous business plans within the health and fitness industries before formally changing its name to Torchlight in 2011. read more. 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. ", "META's management, led by George Palikaras has built an extraordinary award-winning cleantech company whose proprietary advanced technologies address multiple markets and improve their customer's capabilities," said Greg McCabe, Torchlights Chairman. It's a. The closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including approvals by NASDAQ and the Canadian Securities Exchange (CSE), Canadian court approval, and approval by the shareholders of both companies. I am long in TRCH at 36K shares and long in MMATF at 60K shares. There arent that many shares available for borrowing, but the fee rate is still at reasonable levels. I have no business relationship with any company whose stock is mentioned in this article. 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). But remember, Metamaterial is listed on the CSE. As this is not investment advice anyways, here are some possible valuations. This transaction is similar to the popular deals involving special purpose acquisition companies (SPACs). In connection with the proposed merger, Tesla has filed with the SEC a Registration Statement on Form S-4 (Registration Statement No. Metamaterials (MMATF) and Tesla (TSLA) Rumors | Why it COULD MAKE SENSE! We are here to support any Tesla vehicle with repair services, parts, upgrades, and advanced engineering services. 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 its expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. As of the close of 2/16/21, Metamaterial was worth $3.01 CAD x 83.6M shares outstanding = $251.6M CAD. The same is happening at the moment with Torchlight. We have an over 80% success rate, see our reports at whitediamondresearch.com. I wrote this article myself, and it expresses my own opinions. The company detailed its paying of a special dividend to its shareholders, as well as a reverse stock split. 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