shareholders would receive 3.690 shares of Torchlight common stock in exchange for each of their shares of Metamaterial. Prior to the implementation of the reverse stock split, it was expected that Metamaterial, Inc. Commencing on JTorchlight's name will be changed to "Meta Materials Inc." and its common stock will begin trading on NASDAQ under the ticker symbol "MMAT." were completed on Jand therefore Torchlight expects that the business combination will be effective on Jas of 12:01 AM EDT. Torchlight also announced that the steps necessary to close the business combination with Metamaterial Inc. The 1 for 2 ratio represents the lowest amount Torchlight may implement under the 1-20 range that was previously approved by the stockholders. The reverse split, which will become effective after market closing on June 25, 2021, was approved by the stockholders of Torchlight at its Special Shareholder meeting held on June 11, 2021. Torchlight also announced that it implemented a 1 for 2 reverse stock split of its Common Stock. (NASDAQ:TRCH), an oil and gas exploration company ('Torchlight'), today announced that it paid the special Series A Preferred Stock dividend on a 1 for 1 basis to its stockholders of record on June 24, 2021. This indicates that there has been significant change following the news.PLANO, TX / ACCESSWIRE / J/ Torchlight Energy Resources, Inc. The Company’s shares are up 39.11% and are currently trading at $5.04 as of 10:34AM ET. Torchlight’s shares opened at $4.79, up from a previous close of $3.58. As a result, Torchlights share price has skyrocketed since the Company announced the issuance of preferred stock. Many investors are jumping on this opportunity to invest in Torchlight since Torchlight shareholders will have exclusive access to the proposed special dividends. Once the merger in completed, Metamaterial will receive a NASDAQ listing for its firm and Torchlight will become the shell company, with Torchlight’s existing ticker changing to Metamaterial’s. With this in mind, preferred shareholders are paid dividends before common shareholders. While common shares are typically bottom of the priority list when it comes to a company’s assets, preferred shares are at the top. Put into layman’s terms, Series A preferred stock refers to the cream of the crop of a company’s shares. Referring back to Torchlight’s latest announcement, stockholders of record on June 24, 2021, will be entitled to receive the special dividend which will consist of one share of Series A preferred stock for each one share of common stock owned. Torchlight shareholders will also get a distribution that will allow them to receive the proceeds generated from the sale of the Company’s oil and gas assets. A reverse merger refers to merging a private company (Metamaterial) with an existing public shell company (Torchlight), enabling the private company to bypass the arduous process of going public. In particular, Torchlight will be executing a reverse merger with Metamaterial, where Metamaterial shareholders will get 75% of the new shares, and Torchlight shareholders will receive 25%. Initially announced on December 14, 2020, Torchlight and Metamaterial signed a definitive agreement outlining a business combination, or merger. In this case, Torchlight’s special dividend is to be issued in connection with the previously announced business combination transaction with Metamaterial, a developer of high-performance functional materials and nanocomposite products. Compared to normal dividends, special dividends tend to be larger in size and are associated with a specific event. Torchlight Energy Resources (TRCH.Q), an oil and gas exploration company, announced today that it has declared a special dividend of Series A preferred stock to be issued on a one-for-one basis to common stockholders of record as of the close of market trading on June 24, 2021.įor context, a special dividend refers to a non-recurring distribution of company assets to shareholders.
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