Why Torchlight Energy Resources Stock Plunged 26% in March
Shares of U.S exploration and production company Torchlight Energy Resources (NASDAQ: TRCH) fell a painful 26% in March according to data from S&P Global Market Intelligence. That said, at one point they were actually higher by roughly 15%. The mood turned negative as an update about the company's proposed merger started to filter out.
In mid-December 2020 Torchlight Energy and Metamaterial announced plans to merge. It's a complex deal that is, basically, a backdoor way for Canada-based Metamaterial to get a U.S. listing. In fact, once completed, the energy assets now owned by Torchlight are expected to be jettisoned, with the combined company focused on specialty materials. Still, there are incentives for Torchlight investors here, and a reason to be pleased with the somewhat unusual deal.
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Source Fool.com
