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TICKERS: TRCH

Energy Company to Buy Advanced Materials Firm, Divest Oil & Gas Assets
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The transaction signals a strategic shift in focus for Torchlight Energy Resources.

Torchlight Energy Resources Inc. (TRCH:NASDAQ) announced in a news release it signed a letter of intent to acquire Metamaterial, a global developer of high-performance functional materials and nanocomposite products, and to divest its oil and gas assets in H1/21 for Torchlight's legacy shareholders' benefit.

Upon completion of the deal, Metamaterial will become a wholly owned Torchlight subsidiary. Torchlight shareholders will hold a 25% stake in Metamaterial and retain full value of Torchlight's oil and gas assets via a special dividend issued at closing. Metamaterial shareholders will hold a 75% interest in the combined entity.

The transaction represents Torchlight's first step in repositioning itself as an advanced materials company serving the cleantech and technology sectors. The ongoing weakness in the oil and gas markets precipitated this pivot, the company noted.

"To unlock value potential from our national listing and access to the capital markets, we shifted some attention from the divestiture of our oil and gas assets to an acquisition strategy targeting proven disruptive technology companies with strong environmental, social and governance priorities," Torchlight CEO John Brda said in the release.

With the acquisition, Texas-headquartered Torchlight can capitalize on Metamaterial's sizable intellectual property portfolio: it has 52 patents and 37 pending patent applications, including 26 in the U.S. and 63 in 18 other countries. Metamaterial also has multiple research and product development agreements with government agencies and private enterprises. The Canadian company also has a wide array of clients in numerous various, including automotive, aerospace, defense, energy, consumer electronics and medical. Many of the acquiree's materials and metamaterials, which increase efficiency of light or other energy forms, are manufactured with an eye toward sustainability, the company stated.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Torchlight Energy Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Torchlight Energy. Please click here for more information.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Torchlight Energy Resources, a company mentioned in this article.




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