The Torchlight (NASDAQ: TRCH) stock price relentless rally is accelerating on Tuesday, helped by the rising demand from retail investors. The stock jumped by more than 58% on Monday and closed at $9.92. The strong performance continued in pre-market trading as the stock rose by 15% to $11.40. It is up by more than 370% this month.
Torchlight Energy stock soars
Torchlight is a relatively unknown company that is in the acquisition, exploration, and exploitation of oil and natural gas products in the Permian Basin. The firm’s key projects are the Origrande and Hazel projects in Texas.
The company’s stock price has soared, helped by its increasing popularity among retail investors. Indeed, the company has been trending in leading platforms like StockTwits, Reddit, and Robinhood.
In an announcement, the company said that it would have a stock offering as it seeks to raise $250 million. This is an increase from the $100 million that the company was planning to raise. In the past, many meme companies have sought to take advantage of their rising popularity to raise capital. AMC raised $587 million in June while GameStop raised more than $550 million.
The decision to raise money comes a week after the company declared a special dividen in connection to its merger with Metamaterial. The funds raised in the coming share sale will help the company boost its balance sheet. This is after it said that its revenue declined by 97% to $2,471. It then raised seriou concerns about its ability to continue operating as a going concern. This, in turn, led to a sharp increase of its short interest.
So, is the Torchlight stock a good buy? As
