Torchlight Energy Resources Inc. (TRCH) shares were up 7.06% to $10.62 in after-hours trading at last check. During Monday’s regular trading session, Torchlight gained 58.21% to close at $9.92. The number of TRCH shares traded was 378.95 million, compared with an average of 26.41 million per day over the past 50 days.

In the last year, TRCH shares have increased by 2481.99%, and they increased by 177.09% in the past week. For the past three months, TRCH stock has advanced by 333.19%, while over the past six months; it has declined by 2059.34%. A total of 129.61 million shares are outstanding, and the market value of the company currently stands at $1.24 billion. On extending the deadline for its business combination transaction, TRCH stock has been gaining traction.

What was that move all about?

Located in Plano, Texas, Torchlight is an Exploration and Production (E&P) company with a high growth rate. In order to achieve its primary objective, TRCH purchases and develops domestic oil fields. As an explorer, TRCH targets well-established plays such as the Permian Basin in West and Central Texas.

Yesterday, Torchlight announced that TRCH and Metamaterial Inc have extended the date by which the business combination transaction (the “Arrangement”) needs to be completed to June 30, 2021.

• By extending the record date until June 24, 2021, the special Series A Preferred Stock dividend, declared on June 14, 2021, can be paid on June 25th.
• Dividends will be paid on June 25th for Series A Preferred Stock.
• In order to close the Arrangement by June 30, 2021, TRCH will need to obtain approvals from required authorities.

In contrast, Bloomberg wrote about the sudden rise in the Torchlight stock price, that its shares more than doubled in a week following a discussion on Reddit about a possible short squeeze.

In December, Torchlight announced plans to merge with Metamaterial, a Canadian company noted for its expertise in “complex films and metamaterials.”

Will rising demand boost TRCH?

Oil prices have rebounded from a collapse in demand caused by the pandemic, which may help Torchlight (TRCH) to increase its share price. Nevertheless, TRCH isn’t turning a profit like the US shale industry is, which is poised to generate some $30 billion of free cash this year. In its most recent filing, TRCH reported that its oil and natural gas revenues for the first three months of 2021 were 97% lower than they were a year ago.