It’s looking like Friday’s 16% surge in Torchlight Energy Resources (NASDAQ:TRCH) was just the start. Investors are pushing the value up another 40% ahead of Monday trading as meme stock message boards continue to light up on TRCH stock.
What’s behind the move? Fundamentally, it could be today’s announcement that the company bought a few extra days to finalize a merger transaction.
Recall that the company plans to merge with Metamaterial (OTCMKTS:MMATF), which makes advanced materials. Shareholders have approved the deal, whose terms stipulate that Metamaterial shareholders will own 75% of the combined company, while Torchlight shareholders get 25%.
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.
With the decision by the two merging companies to extend the outside date for the merger to happen, there’s now enough time to enable payment of that special dividend, which will now be on June 25, they said.
TRCH Stock Continues to Surface in Meme Chats
The oil and gas exploration and production company based out of Plano, Texas, has become something of a regular on meme chats and threads, like Reddit’s r/WallStreetBets and other subreddits, in recent weeks. 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.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.