Torchlight cashes in on Reddit hype and sells $100 million in new shares after retail traders help drive a 58% surge in the stock price

  • Date: 22-Jun-2021
  • Source: Business Insider
  • Sector:Financial Markets
  • Country:Gulf
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Torchlight cashes in on Reddit hype and sells $100 million in new shares after retail traders help drive a 58% surge in the stock price

Was quick to cash in on retail-trader hype, selling $100 million worth of new shares amid the . In a June 21 filing with the Securities and Exchange Commission, the small Plano, Texas-based oil driller disclosed the share sale and said it could sell up to $150 million more. The company joined the meme-stock ranks Monday when retail traders on popular Reddit investing threads helped drive a 58% rise in the stock. Following the record rally, shares declined as much as 25% Tuesday. Even so, the recent rise has valued the company at more than $1 billion - a far cry from the $70 million market capitalization it started the year off with, according to Bloomberg data. Last month, Torchlight warned it might go out of business as it expects more losses going forward, , citing a filing. The company did not respond to Insider's request for comment. Still, Redditors have jumped on the stock, citing the opportunity to make money off the company from dividends and a short squeeze. The company announced Monday it would extend the closing date for its with Dartmouth, Canada-based , to June 30 to allow time to pay a preferred stock dividend to Torchlight