- The stock price of Torchlight Energy Resources Inc (NASDAQ: TRCH) is trading at over 10% pre-market. This is why it happened.
The stock price of Torchlight Energy Resources Inc (NASDAQ: TRCH) is trading at over 10% pre-market as of 7:14 AM ET. Investors appear to be responding to rumors about the company working with Tesla.
In December 2020, Torchlight Energy Resources and Metamaterial had announced a definitive agreement was signed for a business combination. And as part of the deal, the combined company (formerly known as Torchlight Energy Resources) will change its name and focus its business to align with the current business of Metamaterial.
And YouTube channel Alpha Status Stocks pointed out that Metamaterial and Tesla’s office in Canada have the same address: 1 Research Drive, Dartmouth, Nova Scotia B2Y 4M9:
Since Metamaterial is developing automotive technologies, there could be potential for a partnership with Tesla.
There is also speculation that Tesla CEO Elon Musk is referring to Metamaterial in his Twitter bio where it says “Meta Fork” as of yesterday:
Investors also appear to be responding to Torchlight Torchlight Energy Resources and Metamaterial announcing today that, in accordance with the terms of the previously announced Arrangement Agreement between Torchlight and META, pursuant to which Torchlight and META will complete a business combination, Torchlight has loaned $10 million to META evidenced by an unsecured convertible promissory note.
The Promissory Note bears interest at 8% per annum with all unpaid principal and interest due in one lump sum payment on February 18, 2022. And if the Arrangement Agreement is terminated or expires without the completion of the Arrangement, Torchlight will have the right to convert all or any portion of the principal amount and any accrued but unpaid interest under the Promissory Note into the common shares of META at a conversion price of C$2.80 per Common Share (subject to adjustment as described in the Promissory Note). If the Arrangement is not completed, META will be obligated to repay to Torchlight the total unpaid balance of the principal and interest under the Promissory Note, to the extent not converted into Common Shares, on the Maturity Date.
META intends to use about $5 million of the proceeds from the loan made pursuant to the Promissory Note to accelerate its acquisition of certain pilot scale production equipment to expand its roll-to-roll product family production capabilities, support META’s on-going development of optical products for targeted use in life sciences applications, and expand its metaOptix product line for its e-commerce business. And the remainder will be used for general corporate purposes including working capital and merger related costs.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.