Torchlight merger with metamaterials how to#

The beauty of a short squeeze is the detachment from the fundamentals. Having a large group of people dedicated to the squeeze, many with a zero cost-basis, can only increase the odds of success and the recent run above $7 has drawn even more attention. There are a lot of people saying that the oil and gas assets in the Orogrande are worth many billions, ever the contrarian, my guess is much lower. So, what are the underlying assets of the soon to be private company, NextBridge Hydrocarbons worth? Nobody knows, and from my point of view no one needs to. I think in the end that MMTLP shareholders will get another run. I anticipate that there will be more short attacks, especially is the S-1 needs another change before approval. Here is the past month of trading on MMTLP, as you can see it has been volatile! So far it has put in a high of $7.51 before a short report came out and pushed it almost to $3.50.

Torchlight merger with metamaterials how to#

By August of 2020 it had peaked at $128 because no one could figure out how to short a digital dividend. $OSTK was trading around the $5 mark when they announced that they would be giving out a digital dividend. Back in April of 2020, the CEO felt that the company had been shorted well below its true value and orchestrated a plan to push out the shorts. The best parallel that I can find is the digital dividend. The brokerages should then force those positions closed, creating a lot of buy side volume. So long as the S1 is approved, the company will go private, and you cannot have a short position in a private company.

I believe this was done solely to make the shorts cover, but it really doesn’t matter. The company has submitted an S-1 with the SEC in order to take the assets private. Why would they buy them back? Because they won’t have a choice. With the average volume of a little less than 763k, it would take (under normal volume circumstances), more than 8.6 trading days for the shorts to buy them back. It is widely believed that many millions more synthetic and international shares are held short, and while that would certainly increase buying to close those positions, I’ll assume that only the 6.5m+ shares are held short. Insiders are said to own about 1/3 of the float and I have not seen a single report of them selling any.Īs of (the most recent short report) a whopping 6,592,406 shares were shown to be held short. Why am I telling you this? Because the same shareholders that saw the potential in weird merger and high short positions involved in MMATF/TRCH are the holders of these MMTLP shares and the case for a squeeze is even better. Take a look below at the MMATF and TRCH charts here, you can see the squeeze and the only thing I can promise here, volatility. To add more math to the pile the MMATF shares were given 1.845 times the shares in the new listing MMAT, so you can say the peak of MMATF was closer to $18. By the time the actual merger rolled around Torchlight had hit $10.88, before falling back to $4.93 and Metamaterials had closed at $13.95. It was around this time () that I publicly announced that I was buying shares in both companies, MMATF was at $2.20 and TRCH was at $3.02. The agreement would put Metamaterials on the Nasdaq and Torchlight would divest their oil and gas assets. It was also about the same time that Metamaterials ($MMATF), a smart material and nanocomposite company agreed to merge with Torchlight Energy, an oil and gas company.

It was following these two short squeezes that idea became mainstream. This group was stubborn and committed to making the shorts buy back the shares at much greater prices. In the case of GME and AMC, it was a group of people realizing that a company had a greater value than its share price at the time with an extreme amount of shares held short. Squeezes are typically the result of heavily shorted stocks coming into contact with a positive catalyst. It was never meant to trade publicly, and the story about how it ended up getting listed and by whom reads like fiction. This is the special dividend that resulted from the merger of Metamaterials and Torchlight. Now a fourth potential squeeze has presented itself: MMTLP. I am a long-term holder of companies I buy, yet, in the past two years I have owned three companies that had a demonstrable short squeeze, Metamaterials, Torchlight and Microvision. I invest in the fundamental of companies, while keeping an eye on technical analysis.