TRCH - Why Torchlight Energy Resources Stock Tanked 19% in Early Trading Today
Shares of energy driller Torchlight Energy Resources (NASDAQ: TRCH) fell as much as 19% in morning trading on June 17. By around noon EDT the stock had clawed back some of those losses and was sitting with a drop of about 16%. Some of the drop could be a giveback from June 16, when the stock was in rally mode. However, there's so much going on with Torchlight Energy Resources lately that the shares have been on something of a roller coaster ride for a long time.
In late 2020 Torchlight Energy Resources agreed to merge with Canada's Metamaterial . This, however, isn't a simple business combination, it is a way for Metamaterial to get a U.S. listing. In fact, following the merger, the company plans to exit the exploration and production business altogether. There are a lot of moving parts in this very complex deal. Progress has been slower than expected as well, leading to numerous news-driven price spikes and declines over the first half of 2021. But it looks like it will be consummated relatively soon.
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Why Torchlight Energy Resources Stock Tanked 19% in Early Trading Today