TRCH’s shareholders are expected to retain an approximate 25% equity interest in the combined company. In December 2020, TRCH inked a merger agreement with Canada-based Metamaterial Inc., the completion of which will deliver to shareholders of Metamaterial holding an approximate 75% equity interest in the combined company. So, TRCH’s massive rally should be expected to be short-lived. Meme stocks are very volatile given that they are touted on social media platforms without necessarily possessing solid underlying fundamentals. ![]() While the frenzy looks tempting, playing the short squeeze is certainly not a surefire path to long-term gains. It is one of the latest additions to the meme club following in the footsteps of other names, including GameStop Corporation ( GME ) and AMC Entertainment Holdings ( AMC ). TRCH’s stock skyrocketed with retail traders taking interest in the stock. Here is what we think could influence TRCH’s performance in the near term: energy industry has been gaining momentum on soaring oil prices and favorable government policies, TRCH has not been able to capitalize on the tailwinds and is currently generating a loss. Meanwhile, its staggering losses and weak cash balance continue to be a concern for investors.Īlthough the U.S. Under the agreement, TRCH’s shareholders will retain only a 25% equity interest in the combined business. In December, the company agreed to a business combination with Metamaterial Inc. TRCH’s stock has rallied 1,317.1% year-to-date and 188.9% over the past month on the meme stock frenzy. ![]() The company holds interest in the Orogrande project in New Mexico and the Hazel project in Sterling, Tex. ![]() (TRCH) explores for, acquires and develops oil and natural gas properties in the United States. Oil and natural gas company Torchlight Energy Resources, Inc. However, given the company’s weak fundamentals and lofty valuation, will the stock continue to soar, or will it sink soon? Read ahead to learn more. The share price of oil and gas exploration and production company Torchlight Energy Resources (TRCH) has leapt 1,317.1% so far this year thanks to a reinvigorated meme stock frenzy.
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