Last Friday, Torchlight Energy Resources (NASDAQ:TRCH) had recorded gains of 16%, and this morning the stock has continued in the same vein as it surged by 43%. The Torchlight Energy stock seems to have been caught up in the meme stock frenzy and the retail investors from various social media platforms seem to be pushing the stock higher.
On a fundamental level, the stock may have surged on the back of an announcement that the company is going to get some more days in order to complete its merger with Metamaterial.
It is a merger that has brought the company into the attention of many investors. Metamaterial is a company that is involved in developing advanced materials and the deal has already been approved by the Torchlight shareholders. Once the deal is completed, shareholders of Metamaterials are going to hold 75% of the new entity.
Last week, the Torchlight stock had created a buzz in the markets after the company announced a special dividend of Series A Preferred stock on a one-to-one basis against the common stock. The special dividend is now going to be paid out on June 25 after the merger was delayed and that could be another reason behind the rally this morning.
As of 12:08, TRCH stock soared 42% to $8.90 with more than 215.14 million shares, compared to its average volume of 16.04 million shares. The stock has moved within a range of $8.08 – 10.88 after opening the trade at $8.90. Over the past 52-week, the stock has been trading within a range of $0.21 – 10.88.