TRCH - Why Torchlight Energy Fell 18% at the Open Today
Shares of U.S. exploration and production company Torchlight Energy (NASDAQ: TRCH) fell a sizable 18% in early trading today. That, however, comes on the heels of a massive 50% or so gain the day before . While it would hardly be appropriate to call this normal price action, it isn't exactly shocking, either.
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. That was a huge move for the exploration and production company because it helped to clean up Torchlight's balance sheet . After the conversion it no longer has any term debt and two projects will have liens removed from them, as they backed the loan that was converted.
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Why Torchlight Energy Fell 18% at the Open Today