I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at, Torchlight. But . But remember, Metamaterial is listed on the CSE. Once the two companies combine, it will just be Metamaterial. I wrote this article myself, and it expresses my own opinions. The closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including approvals by NASDAQ and the Canadian Securities Exchange (CSE), Canadian court approval, and approval by the shareholders of both companies. For further information: Investor Relations and Media Contacts: Graham Farrell, Harbor Access LLC (416) 842 9003[emailprotected], Mark Komonoski, Director Capital Markets and IRMetamaterial Inc. 877-255-8483[emailprotected], Torchlight Derek Gradwell Integrous Communications 512-270-6990[emailprotected],[emailprotected], Meta Materials Inc. 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." 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 . The original planned business combination PR, on 9/21/20, states: The Combined Company shall use its commercially reasonable efforts to cause the Torchlight oil and gas assets to be sold by June 30th, 2021. However, I think things have gotten out of hand with the valuation of Metamaterial and it has little to do with the company itself. Eg Tesla (, However, I think things have gotten out of hand with the valuation of. Torchlight Energy is currently an oil and gas exploration company. We are very excited to showcase how metamaterials go beyond conventional materials and chemistry, to offer new and highly sustainable solutions with semiconductor precision, at kilometer scale.. Electro Optical & Infrared Systems (EO/IR). Metamaterial offers proven disruptive technology with strong environmental, social and governance (ESG) priorities. Sign up below to get this incredible offer! We predict the spin-off company will be put into an OTC stock. Our extensive technology platform is software and AI-design driven. However, something unusual has been happening over the past few days. As Cathie Wood stated in the last ARK webinar, she is anticipating a bifurcated V-shaped recovery which will reward companies that have invested in innovation rather than in pandering to shareholders. Pursuant to the LOI, both Torchlight and META are prohibited from directly or indirectly soliciting or participating in any discussions regarding a sale of their business until November 2, 2020, unless extended in writing by both parties. The industry leader for online information for tax, accounting and finance professionals. Torchlight Energy and Metamaterial (MMATF) announced the signing of a definite agreement on 12/14/20 for a business combination. Torchlight cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. META has a growing patent portfolio with three core technologies; holographic, lithographic, and wireless sensing, designed for high volume applications. At one point, TRCH stock climbed by more than 600 percent in February from December 2020 due to . This confirms to us that our analysis on TRCH is correct. META has a growing patent portfolio with three core. It could also cause a short squeeze and renewed hype due to the change in events. However, what the MF article doesn't seem to realize, is that the conversion of debt to equity is part of the merger agreement. 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. Copyright Shares of Meta Material Inc (MMAT.O) gave up premarket gains to fall 20% on Monday, the first day of trading after a merger that saw the niche hi-tech materials maker swallow Torchlight Energy . Therefore, they will be spun-off into another company. Drilling rights in the Permian Basin of West Texas and New Mexico averaged about $24,000 an acre in recent deals, down 67% from 2018, according to Rystad Energy, an Oslo-based research firm. How can investors take part in this move? That gave it a market cap of only $48M. META is currently developing new materials with diverse applications in the automotive, aerospace, consumer electronics and medical industries. In 2018 META was awarded "Best New Product in Commercial Aviation" by Aviation Week Network at the 63rd Annual Laureate Awards, for metaAIR, a Laser Strike Protection solution to protect pilots from harmful laser attacks without interfering with visibility. It sounds like the merger vote will occur sometime around mid-March. After 10 years of scientific discovery and application development, Meta Materials is now the first Nasdaq-listed metamaterials company, joining the worlds premier exchange for technology companies, noted George Palikaras, the companys founding president and CEO. Recall that the company plans to merge with Metamaterial(OTCMKTS:MMATF), which makes advanced materials. Opening a small short position on the CSE could be a good idea. Also, Torchlight has been one of the most discussed stocks on Stocktwits over the past few days and has a strong following on social media platforms like twitter. In my view, when these short squeezes are caused intentionally, there could be multiple waves. Disclosure: I am/we are short TRCH. In connection with the Transaction, Torchlight and Metamaterial respectively obtained fairness opinions. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (. Torchlight's stock rose as high as 74% last Monday as retail investors piled into the stock with record volumes. special purpose acquisition companies (SPACs). which is measured in Tesla (T). In December 2020, Torchlight Energy Resources and Metamaterial had announced a definitive agreement was signed for a business combination. META shall appoint the 5 remaining members of the Board, which members must include the required number of independent members to maintain the NASDAQ listing requirement. Please. 1125 N. Charles St, Baltimore, MD 21201. 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. For those who . Torchlights management will remain, in an advisory role focused on winding down Torchlights legacy business and maximizing the value obtained from the divestiture of Torchlights oil and gas assets. As a result,. The new company, Meta Materials Inc., will begin trading on the Nasdaq after Monday's opening bell under the ticker symbol MMAT. Its a win-win situation for both. Do you remember the GameStop (NYSE:GME) short squeeze? The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines. META is an award winning Global Cleantech 100 company with products that support sustainability by doing more with less; they encompass lightweight, sustainable raw materials and processes which consume less energy and offer more performance. that it inked an agreement with a fund named Lincoln Park Capital to sell shares for up to $20.8 million. This Transaction provides our shareholders with access to the multi-billion-dollar markets that Metamaterial serves and new applications that are being revolutionized with their sustainable technologies, while still allowing our Shareholders at closing of the Transaction to participate in the proceeds of our oil and gas asset divestitures., METAs management, led by George Palikaras, has built an extraordinary award-winning cleantech company whose proprietary advanced technologies address multiple markets and improve their customers capabilities, saidGreg McCabe, Torchlights Chairman. Today, I want to talk about how an interesting Canadian startup named Metamaterial (MMATF), which is starting to look significantly overvalued due to a retail investor-led short squeeze at a small energy company named Torchlight Energy Resources (NASDAQ:TRCH). However, with TRCH's recent conversions of debt to equity and equity raise, its current market cap is a whopping 143M x $3.90 = $558M. 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. - Andr Kostolany. CSO and co-Founder Themos Kallos is Chief Science Officer with Ph.D. in Electrical Engineering with expertise in applied physics, metamaterials, wireless communications, and electromagnetic simulations. Often but not always, forward-looking information can be identified by the use of words such as "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would" or "will" be taken, occur or be achieved. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known. Article printed from InvestorPlace Media, https://investorplace.com/2021/06/mmat-stock-meta-materials-hits-nasdaq-as-trch-stock-merger-closes/. - Disclosure: I am not a financial adviser. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements as a result of various factors, including those risks and uncertainties described in or implied by the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of Torchlight's 2019 Annual Report on Form 10-K, filed on March 16, 2020 and Torchlight's other reports filed from time to time with the Securities and Exchange Commission. I have been investing in stocks since 2007.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 think the main risk for the bear case is a second short squeeze, like what happened at GameStop in March. Torchlight has assets focused in West andCentral Texaswhere their targets are established plays such as the Permian Basin. 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. The following is a summary of the key terms of the Proposed Transaction as contemplated by the LOI. In November 2010, Pole Perfect bought Torchlight Energy and abandoned all of its previous business plans within the health and fitness industries before formally changing its name to Torchlight in 2011. read more. (Source: Interactive Brokers, using a paper trading account). Please disable your ad-blocker and refresh. We are here to support any Tesla vehicle with repair services, parts, upgrades, and advanced engineering services. TRCH could announce something along the lines of: "with the new interest in our company from investors, we have terminated the merger agreement and will continue to develop our projects.". Transformational Deal to Accelerate Growth, Scale and Commercialization of Metamaterials. Readers are cautioned to not place undue reliance upon any such forward-looking statements, which speak only as of the date made. 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. The Merger: This merger is in and of itself proof of the economic transition taking us from destructive technology to disruptive technology. Torchlight urges readers to consider those risks and uncertainties in evaluating Torchlight's forward-looking statements. The reverse split became effective after market close on June 25. META Executive Team has an extremely deep educational background in the hard sciences with a lot of experience creating innovative products. 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. Torchlight shares will be static, METAs shares will be adjusted to maintain the ratio of 75% META share ownership and 25% Torchlight share ownership. They are composite structures, consisting of conventional materials such as metals and plastics, that are engineered. How can investors take part in this move? Accordingly, readers should not place undue reliance on any forward-looking statements or information. Aerospace and Defense- META has extensive experience providing laser protection, de-icing and de-fogging products to aviation companies. ), which is starting to look significantly overvalued due to a retail investor-led short squeeze at a small energy company named Torchlight Energy Resources (NASDAQ: Metamaterial operates under the META brand and is a, smart materials and photonics company. It appears to only want the Nasdaq listing. However, a termination of the merger would likely a be a bad event for Metamaterial's share price, because then it would be stuck trading on the Canadian exchange and would have to find a new Nasdaq reverse merger candidate. Article printed from InvestorPlace Media, https://investorplace.com/2021/06/trch-stock-the-big-news-that-has-torchlight-energy-soaring-today/. Liquidity is low on the OTC market and there is no data on the availability of Metamaterial for sale. TRCH has risen as much as 400% since the beginning of the year, and has doubled over the last week. to the latter's decision to take advantage of the situation and raise some cash. We are very excited to sign the definitive agreement with Metamaterial, statedJohn Brda, Torchlights CEO. Founded META in 2011, prior to that he founded MediWise, a wireless medical sensor company, he was also an antenna design engineer with AceAxis. Although the management of Metamaterial believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. 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. That short squeeze lasted just one week. 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