Why Torchlight Energy Stock Fell as Much as 12% Today

Shares of U.S. exploration and production company Torchlight Energy (NASDAQ: TRCH) fell as much as 12% today. And while the stock had clawed back some of its losses by 1:30 p.m. EDT, it was still lower by a painful 10%. A news release that didn't actually provide much new information caused the dour mood on Wall Street.

Torchlight Energy agreed to be acquired by Canada's Metamaterial in late 2020. The two businesses have virtually nothing in common, given that Torchlight drills for oil and natural gas, and Metamaterial makes "high performance functional materials and nanocomposite products." In fact, after the merger, as the plan stands now, Torchlight's energy assets will be jettisoned. The whole point of the merger is basically for Metamaterial to get a U.S. listing without going through the effort of making an initial public offering (IPO).

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Source Fool.com