Torchlight Energy Resources (TRCH) Attempts To Rebound on Short Covering

Among the many gainers this week so far, the gains made by the Torchlight Energy Resources (NASDAQ:TRCH) stock have been quite notable. After having fallen by as much as 70% since February, the Torchlight stock has managed to make a strong recovery this week.

The stock is up by 30% so far this week and in addition to that, it has also shown impressive momentum. There has been no news about the company this week but it might be a good move to take a look at why the stock actually performed badly in recent months.

In December last year, it was announced that Torchlight was going to be merged with Metamaterial. The transaction is aimed at Metamaterial getting a listing in the United States. While the deal is a complex one, it had some advantages for Torchlight shareholders.

However, in March, the company announced that the deal was going to be completed at some point in the second quarter. The news about the possible delay turned the sentiments negative.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.

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