Shares of Torchlight Energy Resources (TRCH) surged 41.6% to close at $5.07 on June 15.
Torchlight Energy is an oil and gas Exploration and Production (E&P) company with a market cap of approximately $950 million.
Over the past month, the stock has skyrocketed over 135% and is up a whopping 1,107% over the past year.
Reasons for the Spike in the Share Price
Torchlight has been one of the most-mentioned stocks on StockTwits recently, and that enthusiasm among the traders appears to be sending its price higher.
On June 14, Torchlight announced a special dividend of Series A Preferred Stock which would be issued on a one-for-one basis to common shareholders of record as of June 24.
On June 11, Torchlight announced that the merger with the maker of advanced materials, Metamaterial, has been approved by Torchlight shareholders. Per the deal, Metamaterial shareholders are expected to own 75% of the combined company, while Torchlight shareholders will hold the remaining 25%. The Metamaterial deal is expected to close before the end of this month.
These reasons seem to have charmed investors and have contributed to the surge in the share price. (See Torchlight Energy stock chart on TipRanks)
Important TipRanks Metric
Torchlight Energy scores a 6 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.
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