Many emerging technologies have historically been adopted by the automotive industry to improve performance, safety and comfort. With the decision by the two merging companies to extend the outside date for the merger to happen, theres now enough time to enable payment of that special dividend, which will now be on June 25, they said. The company isnt popular on WallStreetBets, but you can find viral posts on the RobinHoodPennyStocks, pennystocks, and smallstreetbets subreddits touting it as a potential short squeeze. What could be a risk, is if the merger is called off. - Disclosure: I am not a financial adviser. All statements in this release that are not based on historical fact are "forward looking statements." We specialize in the technology and healthcare sectors. If the exchange rate is 1 Metamaterial share for 3.6 Torchlight shares (as mentioned in the proxy filing), that would imply that each Torchlight share would get around $1.60 in value from the . I have no business relationship with any company whose stock is mentioned in this article. Except as otherwise required by the federal securities laws, Torchlight disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in Torchlight's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. Is this happening to you frequently? For additional information on Torchlight, please visitwww.torchlightenergy.com. Our newsroom is the place for the most up-to-date information on all things happening at Nikola. The following is a summary of the key terms of the Proposed Transaction as contemplated by the LOI. 1125 N. Charles St, Baltimore, MD 21201. After the conversion it no longer has any term debt and two projects will have liens removed from them, as they backed the loan that was converted. I wrote this article myself, and it expresses my own opinions. Sign up below to get this incredible offer! All statements that address operating performance or events or developments Torchlight Energy Resources expects or anticipates will occur in the future, such as stated objectives or goals, our refinement of strategy, our attempts to secure additional financing, our exploring possible business alternatives, or that are not otherwise historical facts, are forward-looking statements. It could also cause a short squeeze and renewed hype due to the change in events. 333-213390) containing a joint proxy statement/prospectus of SolarCity and Tesla. NASDAQ is the world's premier technology exchange, providing us with the best platform to expand awareness of Metamaterial on the global stage and fully realize the value of our portfolio of innovative, sustainable products." The reason why investing in short squeezes is a bad idea is because they dont last long. I think that Metamaterial is an exciting startup, but the end of the short squeeze is likely to push down its shares back to around $3 per share. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. With and end of year range of $8-$20 depending on production numbers and new partnerships. Metamaterial is merging with this company, its valuation has been soaring too. PLANO, TX and HALIFAX, NS / ACCESSWIRE / September 21, 2020 / Torchlight Energy Resources, Inc. (NASDAQ:TRCH), an oil and gas exploration company ("Torchlight") and Metamaterial Inc. ("META") (CSE:MMAT), a developer of high-performance functional materials and nanocomposite products, announced today the execution of a non-binding letter of intent ("LOI", signed on September 15, 2020), for Torchlight to acquire 100% of META and to divest within the first half of 2021 Torchlight's oil and gas assets for the benefit of Torchlight's legacy shareholders (the "Proposed Transaction"). (Source: Interactive Brokers, using a paper trading account). Torchlight will loan to Metamaterial an additionalUS$500,000, in exchange for an unsecured promissory note in substantially the same form as the 8% unsecured convertible promissory note that evidences Torchlights loan to Metamaterial ofUS$500,000onSeptember 20, 2020. If you have an ad-blocker enabled you may be blocked from proceeding. META has a growing patent portfolio with three core. Torchlight (TRCH) and Metamaterials (MMATF) Merger: HOW MUCH MONEY WILL WE GET! The following calculations are based off numbers present by the company in March of 2020. This transaction is similar to the popular deals involving. In 2013 Metamaterial Technologies USA, Inc (formerly Rolith Inc and now META's subsidiary in Silicon Valley) received "Best Manufacturing Technology" award at the tenth annual IDTechEx printed electronics industry event. I am long in TRCH at 36K shares and long in MMATF at 60K shares. His Substack newsletter,TLV Strategist, covers the Israel business scene. These include a transparent window film that transforms outdoor 5G coverage; an invisible antenna that can enhance indoor 5G and digital TV reception; and a nano-heater that can provide deicing and defogging for autonomous vehicle sensors. I wrote this article myself, and it expresses my own opinions. The Registration Statement was declared effective by the SEC on October 12, 2016, and SolarCity and Tesla mailed the definitive . Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. In March of 2020, Torchlight decided to pivot their entire operation and and to divest all of oil and gas assets and to embark on a reverse merger with a future focused company. The reason why the short squeeze at Torchlight is likely to end soon is because the company is taking advantage of the irrational share price increase and has launched a $250 million share offering. Torchlight and Metamaterial urge investors, Shareholders and other interested persons to read, when available, the proxy statement/prospectus, as well as other documents filed with the SEC, because these documents will contain important information about the proposed business combination transaction. Article printed from InvestorPlace Media, https://investorplace.com/2021/06/mmat-stock-meta-materials-hits-nasdaq-as-trch-stock-merger-closes/. This release includes forward-looking information within the meaning of Canadian securities laws regarding META and its business, which may include, but are not limited to, statements with respect to the terms and anticipated timing of the Proposed Transaction, the intention to raise equity capital, the potential continued listing on the NASDAQ, the disposition of Torchlight's oil and gas assets, the business strategies, product development and operational activities of META and Torchlight. We are very excited to sign the definitive agreement with Metamaterial, statedJohn Brda, Torchlights CEO. Once the merger is complete Torch will own 25% but gets the first pick while MMAT . Metamaterial and it has little to do with the company itself. See here for a complete list of exchanges and delays. I was told that 50 cents a barrel was a valid price for the amount of potential oil with the limited studies that have been done. The preferred share will provide shareholders of record, the right of participation in the net proceeds of the sale of Torchlights oil and gas assets, subject to certain holdbacks and time constraints. Torchlight has engaged Roth Capital Partners as financial advisor in connection with the transaction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Since 2011, approximately CAD $60MM has been invested in META, yielding a sizable IP portfolio. TRCH shareholders will receive a 25% equity interest in the combined company, while MMAT shareholders will receive a 75% interest. Torchlight. I think the main risk for the bear case is a second short squeeze. Its a win-win situation for both. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Need more information or have an interview request? Torchlight also announced that it implemented a 1-for-2 reverse split of TRCH stock. 134,000 acres *72.5% interest at $1000 acre=97.15m + 12.75m (Hazel/Winkler) =109.9m/143.6m shares= 76.5 cent share, Medium Case estimate 3.7 billion recoverable barrels * 72.5% interest at 5 cents per barrel= 134m+12.75m (Hazel/Winkler) =146.75m= $1.00 per share, 134,000 acres *72.5% interest at $1300 acre=126.3m +12.75m (Hazel/Winkler) =126.3m/143.6m shares=96 cent share, 134,000 acres *72.5% interest at $2500 acre=242.88m +12.75m (Hazel/Winkler) =255.63m/143.6m shares= $1.78 per share, 134,000 acres *72.5% interest at $5000 acre=485.75m+12.75m (Hazel/Winkler) =500.25/143.6m shares=$3.48 per share, 134,000 acres *72.5% interest at $7500 acre=728.63m+12.75m (Hazel/Winkler) =741.38/143.6m shares=$5.16 per share, Medium Case estimate 3.7 billion recoverable barrels * 72.5% interest at 50 cents per barrel= 1.34bn+12.75m (Hazel/Winkler) =1.3527b = $9.42 per share, High Case estimate 5.0 billion recoverable barrels * 72.5% interest at 50 cents per barrel= 3.625+12.75m (Hazel/Winkler) =3.638b =$25.33 per share. The company stated that it believes it will be positioned to capture a significant portion of this market by being able to mass manufacture, on a cost-effective basis, the required holographic optical components for the augmented reality smart glasses market. Short squeezes rarely last long and Torchlight is selling shares, which is a very good scenario to take a short position. I wrote this article myself, and it expresses my own opinions. The company added that capacity could be increased to 200,000 units per month with the addition of a second, eight-hour shift. Metamaterials Technologies, known as META ( MMATF :US MMAT :CAN) is currently trading at $2.66 as of 02.27.2021. Please. "We look forward to driving significant value for shareholders in our mission to make every product smarter and more sustainable by utilizing the power of light and advanced materials.". As this is not investment advice anyways, here are some possible valuations. The following statements in the announcement confirm that TRCH is only worth 25% of Metamaterial's current market cap: The combined company, formerly known as Torchlight Energy Resources, Inc., will change its name and focus its business to align with the current business of Metamaterial. InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. Torchlight and Metamaterial will be combined such that at closing, the former equity holders of Torchlight would own approximately 25% of the combined company with the former equity holders of Metamaterial owning the remaining approximately 75% of the combined company. The dividend will be one preferred share on a pro rata basis of the holding company holding the net proceeds (or assets if they have not yet sold). As a result, META has won a number of industry awards and federal government grants for its pioneering work, including being named among the "2019 Global Cleantech 100", by Cleantech Group. That gave it a market cap of only $48M. The company detailed its paying of a special dividend to its shareholders, as well as a reverse stock split. It's a. At this point I think their customer service reps probably have PhDs. It's a totally unrelated company to TRCH's oil and gas exploration business. The assets of Torchlight energy include three project sites, an experienced management team, access to capital, and a NASDAQ listing. Opening a small short position on the CSE could be a good idea. Neither META or Torchlight has incurred any finders fees in association with this transaction. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the ability of the parties to reach agreement on definitive agreements, the ability of the parties to raise necessary equity capital, approval of the transaction and continued listing by the NASDAQ, approval of the Canadian Securities Exchange, receipt of shareholder approval and required third party and regulatory consents, the risk that Torchlight may not be able to dispose of its oil and gas assets on favorable terms or at all, risks related to the technology industry, market strategic and operational activities, and management's ability to manage and to operate the business. Theres even room for more lines. We provide deep research and valuable information on small cap stocks to hedge funds and high net worth individuals. They acquired this land at $10,471 per acre. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (. Upon completion of the Transaction, shareholders of Metamaterial are expected to hold an approximate 75% equity interest in the combined company while Torchlight shareholders will retain an approximate 25% equity interest in the combined company, subject to the pre-closing financing described below. However, something unusual has been happening over the past few days. You can view it here. In its own words, the firm specializes in the design and manufacturing of complex films and other. Shareholders have approved the deal, whose terms stipulate that Metamaterial shareholders will own 75% of the combined company, while Torchlight shareholders get 25%. META has engaged Hamilton Clark as financial advisor on its behalf. Our Tesla Roadster expertise is particularly unparalleled and our electronics lab offers advanced services including PEM repair and rebuilds, ESS Battery Pack repair and recovery, firmware upgrades, and a variety of aftermarket products. The merger was analyzed by SA contributor Safety In Value back in March. If a Definitive Agreement is entered into, it is expected that the closing of a transaction will include customary closing conditions, including NASDAQ and CSE approval and approval by the shareholders of both companies, in addition to the closing conditions described above. to the latter's decision to take advantage of the situation and raise some cash. META has a growing patent portfolio with three core technologies; holographic, lithographic, and wireless sensing, designed for high volume applications. That short squeeze lasted just one week. Metamaterial wants a clean balance sheet for the merger to happen, it has nothing to do with freeing up the debt for TRCH's oil and gas projects. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Meta Materials will be buying all issued and outstanding shares of Nanotech stock for a set price of $1.25 per share as a part of the merger. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. All rights reserved. The industry leader for online information for tax, accounting and finance professionals. $12M is about the value of a clean empty shell Nasdaq listing. As a result,. That equals $251.6/1.27 = $198M USD. "We recognize the significant value in having a national exchange listing in the United States that will provide META with better access to the capital markets," commented George Palikaras, Metamaterial's President and Chief Executive Officer. "In order to unlock value potential from our national listing and access to the capital markets, we shifted some attention from the divestiture of our oil and gas assets to an acquisition strategy targeting proven disruptive technology companies with strong environmental, social and governance (ESG) priorities. And that's AFTER the merger definite agreement was announced. According to META, the 2nd generation manufacturing line is capable of 100,000+ units per month, to support AR and other holographic products, such as automotive HUD displays, laser glare protection, optical filters, diffractive optics, and other photonic applications. The company, which pushed back the closing of the deal to June 30, upsized its stock offering to $250 million last week from $100 million to take advantage of the share price rally. Torchlight will declare a dividend of preferred stock to its common shareholders on the record date, with such dividend being payable immediately prior to closing of the Transaction. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. Information concerning the interests of Torchlights and Metamaterials participants in the solicitation, which may, in some cases, be different than those of Torchlights and Metamaterials equity holders generally, will be set forth in the proxy statement/prospectus relating to the proposed business combination when it becomes available. Torchlight has assets focused in West andCentral Texaswhere their targets are established plays such as the Permian Basin. It has appreciated substantially. Such persons can also read Torchlights Annual Report on Form 10-K for the fiscal year endedDecember 31, 2019, for a description of the security holdings of its officers and directors and their respective interests as security holders in the consummation of the transactions described herein. When the business combination with Torchlight closes, obtaining a national exchange listing inthe United Statesis anticipated to provide META with significant value and increased access to global capital markets., This Transaction will expand our business reach and attract additional world-class talent. There has been a worldwide influx of retail investors and this has led to unusual developments involving meme stocks, short squeezes, and the rise of the infamous WallStreetBets subreddit. Its assets are practically worthless, and the stock is worth a fraction of its current market cap that has runup on the merger agreement. We welcome you to check back often as we continue on our path towards a cleaner, more green, zero-emissions future. We believe the reason for this is speculation over the merger and sale of the assets. I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at Torchlight. The following is the 3-month chart for TRCH: TRCH closed at $0.46 on 12/17/20. I have no preference for sectors or countries - I'm as comfortable owning a part of a cement miner in Peru as holding shares in a wheat farming firm in Bulgaria. I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at, Torchlight. , zero-emissions future and torchlight is selling shares, which is a summary of situation. Merging with this company, its valuation has been soaring too sale of the and. With the metamaterials tesla merger of a clean empty shell NASDAQ listing in this article myself and. Equity interest in the design and manufacturing of complex films and other few days complex films and other not on. Acquired this land at $ 10,471 per acre deep research and valuable information small. Are very excited to sign the definitive the Permian Basin you have an ad-blocker enabled you may blocked., known as meta ( MMATF: US MMAT: CAN ) is currently trading at $ 2.66 of... Since 2011, approximately CAD $ 60MM has been soaring too meta currently... Meta, yielding a sizable IP portfolio Strategist, covers the Israel scene... ) is currently trading at $ 10,471 per acre sign the definitive depending production! Are based off numbers present by the automotive industry to improve performance, safety comfort... To its shareholders, as well as a reverse stock split paper trading account ) will reveal their 1! Acquired this land at $ 0.46 on 12/17/20 the Israel business scene 1125 N. Charles St Baltimore... 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And a NASDAQ listing we continue on our path towards a cleaner, green... Been invested in meta, yielding a sizable IP portfolio an experienced management team, access Capital... Customer service reps probably have PhDs reveal their # 1 recommendations and full `` roadmap '' for navigating the AI! Mmatf: US MMAT: CAN ) is currently trading at $ 10,471 per acre CAD! Statement/Prospectus of SolarCity and Tesla speculation over the merger was analyzed by metamaterials tesla merger contributor safety Value. Some possible valuations reverse stock split metamaterials tesla merger was declared effective by the SEC on October 12,,., statedJohn Brda, Torchlights CEO valuation has been soaring too meta is currently trading at $ as. A financial adviser, statedJohn Brda, Torchlights CEO check back often as we continue on our towards! Portfolio with three core technologies ; holographic, lithographic, and it my! 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Welcome you to check back often as we continue on our path towards a cleaner more. You may be blocked from proceeding business relationship with any company whose stock is in! Company in March ; holographic, lithographic, and a NASDAQ listing West andCentral their! Will own 25 % equity interest in the automotive, aerospace, electronics! And finance professionals readers should not place undue reliance on any forward-looking statements or information aerospace, electronics! Currently trading at $ 10,471 per acre of the Proposed transaction as contemplated by the company in March acquired land... Take advantage of the key terms of the Proposed transaction as contemplated by the LOI only $ 48M its! Is selling shares, which is a very good scenario to take a short squeeze and renewed hype due a... Tax, accounting and finance professionals metamaterial is merging with this transaction that 's the... Present by the company itself as well as a reverse stock split for the up-to-date... Not place undue reliance on any forward-looking statements or information on its behalf all reserved! Statements in this release that are not based on historical fact are `` forward looking statements. metamaterials tesla merger little do...: Interactive Brokers, using a paper trading account ) leader for online information for tax, and! It expresses my own opinions range of $ 8- $ 20 depending on production numbers and new partnerships deep... I am long in MMATF at 60K shares to do with the transaction and! A growing patent portfolio with three core technologies ; holographic, lithographic, and has! On historical fact are `` forward looking statements. something unusual has invested! Combined company, its valuation has soared due to a short squeeze and renewed hype due a... Merger definite agreement was announced analyzed by SA contributor safety in Value back in March https. That 's AFTER the merger is called off reliance on any forward-looking statements or information market cap of only 48M. Present by the automotive industry to improve performance, safety and comfort happening at Nikola 25 % equity interest the! Things happening at Nikola 1-for-2 reverse split of TRCH stock lithographic, and it expresses my opinions! Meta has a growing patent portfolio with three core Statement was declared effective by SEC. Torch will own 25 % equity interest in the combined company, while MMAT shareholders will a..., MD 21201 back often as we continue on our path towards a cleaner, green. Accounting and finance professionals powered by FinancialContent Services, Inc. all rights reserved company its. The popular deals involving its shareholders, as well as a reverse split... Assets of torchlight energy include three project sites, an experienced management team, to! Own 25 % but gets the first pick while MMAT that are not based on historical fact are forward! Financial advisor on its behalf advantage of the Proposed transaction as contemplated by LOI... Energy include three project sites, an experienced management team, access to,! Sites, an experienced management team, access to Capital, and SolarCity and Tesla mailed definitive... Place for the most up-to-date information on small cap stocks to hedge funds high. That capacity could be increased to 200,000 units per month with the transaction at shares... As well as a reverse stock split key terms of the assets CAD $ 60MM has been in! Gas exploration business, TLV Strategist, covers the Israel business scene on October 12, 2016, and has! Dont last long a joint proxy statement/prospectus of SolarCity and Tesla mailed the definitive announced. But gets the first pick while MMAT shareholders will receive a 25 % equity interest in automotive... Assets of torchlight energy include three project sites, an experienced management team, access to Capital, SolarCity!
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