Why Torchlight Energy Stock Tanked 18% at the Open Today
Shares of exploration and production company Torchlight Energy (NASDAQ: TRCH) fell a quick 18% when trading opened on April 16. The big news was an after-the-close update on April 15 discussing the U.S. energy company's complex merger agreement with Canada's Metameterial (OTC: MMAT.F).
The deal between Torchlight and Metamaterial isn't your typical merger. It is, effectively, a way for Metamaterial to get a U.S. listing without having to go through an initial public offering. Indeed, as the company's name implies, it does not drill for oil and gas, but operates in the materials space. Following the merger it will be looking to jettison Torchlight's energy assets.
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Source Fool.com
