Torchlight Energy Resources Inc. (NASDAQ: TRCH) stock gained by 14.74% at last close while the TRCH stock price further rose by 16.48% in the after-hours session, at last check. Torchlight Energy Resources is a high-growth oil and gas Exploration and Production (E&P) business situated in Plano, Texas. Its major goal is to acquire and produce domestic oil assets.
TRCH reported that it has issued a one-for-one Special Dividend of Series A Preferred Stock to be payable to Common Stockholders of Record as of June 24, 2021 (depending on the adjustment for any reverse split of Torchlight’s common stock after the record date but before the dividend is paid). This Special Dividend will be paid in conjunction with Metamaterial, Inc.’s recently announced business combination deal.
The dividend will be paid to stockholders of record on June 24, 2021, and will comprise of one share of Series A Preferred Stock for every one share of common stock held on that day.
Pursuant to certain holdbacks, holders of Series A Preferred Stock will be eligible to a pro rata share of any future net profits or other possible benefits obtained from Torchlight’s oil and gas assets. The deal with Metamaterial, Inc. is anticipated to be completed by the end of June.
Recent Past Development
TRCH reported the results of its virtual special meeting of stockholders on June 11, 2021, which was convened in conjunction with the previously reported merger deal with Metamaterial, Inc.
A quorum was present at the meeting held and based on the preliminary findings of the votes cast in person and by proxy, the Torchlight stockholders accepted all five proposals to be voted on at the meeting. The final results of the shareholder vote will be disclosed in a Form 8-K filed by Torchlight.