This is just a rough estimate based on the latest information I found, but if accurate it still points to Metamaterial's shares being significantly cheaper than Torchlight's shares if one wanted to invest in the new company.įor example, one Torchlight share is currently $2.29 USD (perhaps $2.08 USD net of the value of its oil and gas properties as discussed below). Based on the formula mentioned in Metamaterial's circular, Torchlight may issue approximately 403 million shares to exchange for Metamaterial's shares, which would imply around 3.3 Torchlight shares for each Metamaterial share. Metamaterial may have approximately 122 million fully diluted shares now, while Torchlight may have around 153 million fully diluted shares. The former operator of the Orogrande Project sold its 9.5% working interest in the assets for $2.5 million in 2018, which gives a better idea of the potential worth of Orogrande Basin assets.
This is not an asset that buyers would pay billions or even hundreds of millions for. Torchlight's Orogrande Project (Hudspeth County) acreage had no proved reserves at last report, and Hudspeth County had no reported production at last report either. However, that comparison shows a lack of understanding about oil and gas assets and is not that much more valid than using Manhattan land values to value a parcel in rural Nevada just because both areas are part of the United States. These calculations tend to mention the value of prime Permian Basin acreage when discussing Torchlight's Orogrande Basin acreage. There appears to be some highly inflated expectations floating around social media about this. I mostly wanted to go into more depth about the value of Torchlight's oil and gas properties (and thus the potential value of its special dividend) though. Metamaterial's stock is up around 36% since that report, while Torchlight's stock is down around 38% over the same period. Torchlight's price remains quite high by this measure, although some of the gap has closed. I've expressed my opinion about Torchlight's relatively high price compared to Metamaterial's given their relative stakes in the post-combination company. Torchlight Energy Resources ( TRCH) is heading towards its merger with Metamaterial ( MMATF). The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Other companies in which they allegedly conducted market manipulation include Camber Energy (NYSEMKT: CEI) and Alzamend Neuro (NASDAQ: ALZN). They may also be banned from trading securities in the future and face jail time, as criminal charges have been filed against them. The promotion resulted in a massive rise in price for Torchlight, which the company used to its advantage by issuing over $100 million in at-the-market offerings.īased on the lawsuit, the eight individuals will face disgorgement of all their illegal gains and pay civil penalties. 23, the group allegedly made profits of $775,629 from their scheme. In one example, Matlock posted in Discord: “TRCH going to 4+ after hours on Henne new found covid DD.” However, Matlock immediately sold out of 49,602 shares for $3.32 per share following the message, disregarding his own $4 price target.įrom Feb. He noted to his followers that the company had a “10 billion dollar MARKET CAP POTENTIAL.” For example, Hennessey claimed that Meta would potentially partner with Tesla (NASDAQ: TSLA) and had coronavirus-fighting applications in store. The group used the then-upcoming merger with Meta as a catalyst for their followers to buy in. Furthermore, they would often sell their entire stake and then buy back in. The group would then continue to promote the company as if they still held shares. After the promotion, their unsuspecting followers would buy in and pump up the price, which led the group to sell out with significant gains.
Meta Materials’ Predecessor Name-Dropped in SEC Lawsuitįollowing the purchases, the group embarked on a campaign to promote Torchlight to their hundreds of thousands of followers.
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