TRCH - TRCH Stock: 2 Big Reasons Torchlight Energy Is Rocketing Higher
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Investors look set to fuel the shares of Torchlight Energy Resources (NASDAQ:TRCH) for a second day, as morning trading has shares up 32%. Trading was nearly twice the average daily volume on Monday as TRCH stock gained 14.74%.
As seems to be the case with many pre-market movers these days, there are both fundamental reasons and social media chatter underlying the trending ticker on the oil and gas producer.
TRCH stock emerged as the third-most mentioned name in the Stocktwits chatroom yesterday, Bloomberg reported yesterday morning.
Stoking some of the chat is a merger announcement on June 11 regarding Torchlight and Metamaterial (OTCMKTS:MMATF), which makes advanced materials. Torchlight announced Friday that its shareholders have approved the deal. Under terms of the deal, Metamaterial shareholders are expected to own 75% of the combined company, while Torchlight shareholders get 25%.
Meanwhile, more on the fundamental side, Torchlight late yesterday 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. The company also said it expects the Metamaterial transaction to close before the end of the month.
Keeping that in mind, here’s what potential investors in TRCH stock need to know about the company before they invest.
What to Know About TRCH Stock Today
- Torchlight Energy is an oil and gas exploration and production company based out of Plano, Texas. It has a total of four full-time employees.
- The company’s main focus is on the “acquisition and development of highly profitable domestic oil fields.”
- It holds interests in Texas, including the Permian Basin and the Eagle Ford Shale.
- TRCH currently has projects underway in the Midland Basin, Orogrande Basin, and the Delaware Basin.
- Torchlight Energy was founded in October 2007.
- It joined the public market in November 2010 after completing its initial public offering (IPO).
- The company is led by its president, CEO, secretary, and director John Brda.
- He took up this role in December 2012 after the departure of co-founder Tom Lapinski.
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.
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