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What happened Shares of U.S. energy company Torchlight Energy Resources ( NASDAQ:TRCH ) declined as much as 16% in early trading on Monday. While falling oil and natural gas prices didn’t help the situation today, the news driving the drop was likely an update on the company’s planned reverse merger with Metamaterial ( OTC:MMAT.F ). So what In December, Torchlight, an exploration and production company, announced that it had entered into a fairly complex reverse-merger deal with Metamaterial, a Canadian specialty materials company. Effectively, Metamaterial will end up owning 75% of the combined company, with Torchlight shareholders owning the rest. Metamaterial management will run the company after the deal is complete, offering it a backdoor of sorts into a U.S. listing. That said, there are a number of conditions on the deal, including Torchlight shareholders receiving preferred shares that will allow them to participate in the financial benefit from the planned sale of Torchlight’s energy assets, which don’t fit with Metamaterial’s business plans. All in, there are a lot of moving parts here. Image source: Getty Images. The original goal, announced during the conference call for the deal, was to close the transaction last month. That date has come […]
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