Is Meta Materials (NASDAQ:MMAT) Stock a Good After The Recent Sharp Fall?

Following the June 28 combination with Meta Materials (NASDAQ:MMAT), Torchlight Energy Resources is no more and currently trades under ticker MMAT. However, the news of a reverse TRCH stock split, dividend payment, and the merger was adequate to spike interest in the stock throughout June.Torchlight was a Texas gas and oil exploration company, while Meta Materials is a firm that creates nanocomposites and functional materials.

Interestingly the synergies for the merger are somehow unclear. Although TRCH had been an acquisition target for a long time, the acquirer profile seemed to be a large oil E&P firm. But, it seems the merger agreement terms were sufficient to convince shareholders to agree to the deal. Meta Material will own 75% of the merged business, with Torchlight owning the rest.

Torchlight’s Chief Executive Officer will remain in the merged company to dispose of its gas and oil assets. The combined business has cash of around $160 million and almost zero debt. So, in the coming months, MMAT is a stock to watch.

Market Reaction:

On Wednesday, MMAT stock jumped 7% at $4.27 with more than 39.84 million shares, compared to its average volume of 19.60 million shares. The stock had moved within a range of $3.6340 – 4.7000 after opening the trade at $3.95. Over the past 52-week, the stock has been trading within a range of $0.4200 – 21.7600.