Torchlight Energy Resources Inc (NASDAQ:TRCH) continues to move up big as investors are cheering the surprised dividend announcement. The stock has soared 400% so far this year.
Major Trigger:
Torchlight Declares Special Dividend of New Series A Preferred
Key Highlights:
- announced that it has declared a Special Dividend of Series A Preferred Stock to be issued on a one-for-one basis to Common Stockholders of Record as of the close of market trading on June 24, 2021 (subject to adjustment for any reverse split of Torchlight’s common stock after the record date but before the dividend is paid). This Special Dividend is to be issued in connection with the previously announced business combination transaction with Metamaterial, Inc.
- Stockholders of record on June 24, 2021, will be entitled to receive the dividend which will consist of one share of Series A Preferred Stock for each one share of common stock owned on that date (subject to adjustment for any reverse split of Torchlight’s common stock after the record date but before the dividend is paid).
- Holders of Series A Preferred Stock will be entitled, on a pro rata basis, to any future net proceeds or other potential benefits derived from the disposition of the oil and gas assets of Torchlight, subject to certain holdbacks.
Market Reaction
As of 8:48, TRCH is trading at $4.80, down 34%. So far more than 9.05 million shares have exchanged hands.
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