Torchlight Energy (NASDAQ:TRCH) stock is soaring higher on Tuesday after announcing that it no longer has any term debt.
According to a news release from the company, its final remaining secured noteholder has converted all $1.5 million of its remaining debt into shares of TRCH stock. The conversion price was $1.50 per share, which netted the lien holder 1 million shares of the stock.
Torchlight Energy notes that this also means the blanket liens on the Orogrande Project and the Hazel Project are being released. These are what the company was using to secure the debt.
The positive news for TRCH stock today comes after a strong previous week. The Texas-based oil and gas company announced last week the completion of a public offering. This had it selling 23 million shares of its stock for $1.20 each. That offering also saw the underwriter fully exercise its share purchase rights.
Torchlight Energy is seeing massive trading of TRCH stock today following the most recent news. That has more than 102 million shares of the stock changing hands. To put that in perspective, the company’s daily average trading volume is roughly 15 million shares.
Torchlight Energy is an oil and gas exploration and production company. Its focus is on acquiring domestic oil fields. Most of its operations are based in West and Central Texas.
TRCH stock was up 50.9% as of Tuesday morning and is up 507.3% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.