SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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Item 1.01 Entry into a Material Definitive Agreement.
Extension of Hazel Option Agreement
As previously disclosed in the current report on Form 8-K filed with the Securities and Exchange Commission (the SEC) on August 13, 2020, on that date, Torchlight Energy, Inc. and Torchlight Hazel, LLC, subsidiaries of Torchlight Energy Resources, Inc. (Torchlight), entered into an option agreement (the Option Agreement) with Masterson Hazel Partners, LP (MHP) and McCabe Petroleum Corporation. As previously disclosed in the current report on Form 8-K filed with the SEC on September 23, 2020, on September 18, 2020, the parties entered into a First Amendment to Option Agreement, under which the date MHP must exercise its options under the Option Agreement was extended to no later than May 31, 2021. On April 15, 2021, the parties entered into a Second Amendment to Option Agreement, under which the date MHP must exercise its option under the Option Agreement was extended to September 30, 2021; provided, however, that the purchase price to purchase the Hazel Prospect will increase by $500,000 on the first of every calendar month beginning on June 1, 2021, without proration, during the option period. As a condition precedent to the Second Amendment, MHP is to pay Torchlight Energy, Inc. and Torchlight Hazel, LLC a total fee of $1,000.
The description of the Second Amendment to Option Agreement set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Amendment to Option Agreement which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
Fourth Amendment to Arrangement Agreement
As previously disclosed in the current report on Form 8-K filed with the SEC on December 14, 2020, on that date, Torchlight and its newly formed subsidiaries, Metamaterial Exchangeco Inc. (formerly named 2798832 Ontario Inc., Canco) and 2798831 Ontario Inc. (Callco), both Ontario corporations, entered into an Arrangement Agreement (the Arrangement Agreement) with Metamaterial Inc., an Ontario corporation headquartered in Nova Scotia, Canada (Metamaterial and, together with Torchlight, Callco and Canco, the Parties), to acquire all of the outstanding common shares of Metamaterial by way of a statutory plan of arrangement (the Arrangement) under the Business Corporations Act (Ontario), on and subject to the terms and conditions of the Arrangement Agreement. On February 3, 2021, the Parties agreed to amend the Arrangement Agreement as disclosed on the Form 8-K filed by Torchlight with the SEC on February 3, 2021, on March 11, 2021, the Parties agreed to further amend the Arrangement Agreement pursuant to a Second Amendment to Arrangement Agreement as disclosed on the Form 8-K filed by Torchlight with the SEC on March 15, 2021, and on March 31, 2021, the Parties agreed to further amend the Arrangement Agreement pursuant to a Third Amendment to Arrangement Agreement as disclosed on the Form 8-K filed by Torchlight with the SEC on April 1, 2021.
On April 15, 2021, the Parties agreed to further amend the Arrangement Agreement pursuant to a Fourth Amendment to Arrangement Agreement, dated April 15, 2021 (the Fourth Amendment). The Fourth Amendment amends the Arrangement Agreement to extend the date by when Torchlight must give notice of its meeting of the stockholders pursuant to the Arrangement Agreement to April 30, 2021.
The description of the Fourth Amendment set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Fourth Amendment which is attached to this current report as Exhibit 2.1 and incorporated by reference herein.
Item 8.01 Other Events.
On April 15, 2021, Torchlight issued a press release to update the public regarding the status of the Arrangement. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference.
This current report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by those sections. All statements in this current report that are not based on historical fact are forward looking statements. These statements may be identified by words such as estimates, anticipates, projects, plans, strategy, goal, or planned, seeks, may, might, will, expects, intends, believes, should, and similar expressions, or the negative versions thereof, and which also may be identified by their context. All statements that address operating performance or events or developments Torchlight expects or anticipates will occur in the future, such as stated objectives or goals, refinement of strategy, attempts to secure additional financing, exploring possible business alternatives, or that are not otherwise historical facts, are forward-looking statements. While management has based any forward-looking statements included in this current report on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements as a result of various factors, including risks associated with Torchlights ability to obtain additional capital in the future to fund planned expansion, the demand for oil and natural gas which demand could be materially affected by the economic impacts of COVID-19 and possible increases in supply from Russia and OPEC, the Arrangement pursuant to the Agreement, general economic factors, competition in the industry and other factors that could cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Additional risks and uncertainties are described in or implied by the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations sections of Torchlights 2020 Annual Report on Form 10-K, filed on March 18, 2021 and other reports filed from time to time with the SEC. Torchlight urges you to consider those risks and uncertainties in evaluating its forward-looking statements. Readers are cautioned to not place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, Torchlight disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in its expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based.
Additional Information and Where to Find It
will prepare a definitive proxy statement for Torchlights stockholders to be filed with the SEC in connection with the transactions
contemplated by the Arrangement Agreement. The proxy statement will be mailed to Torchlights stockholders. Torchlight urges investors,
stockholders and other interested persons to read, when available, the proxy statement, as well as other documents filed with the SEC,
because these documents will contain important information about the Arrangement. Such persons can also read Torchlights Annual
Report on Form 10-K for the fiscal year ended December 31, 2020, for a description of the security holdings of its officers and directors
and their respective interests as security holders in the consummation of the transactions contemplated by the Arrangement Agreement.
Torchlights definitive proxy statement will be mailed to stockholders of Torchlight as of a record date to be established for
voting on the transactions contemplated by the Arrangement Agreement. Torchlights stockholders will also be able to obtain a copy
of such documents, without charge, by directing a request to: John A. Brda, President of Torchlight Energy Resources, Inc., 5700 W. Plano
Parkway, Suite 3600, Plano, Texas 75093; e-mail:
Participants in Solicitation
Torchlight and its directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Torchlight stockholders in connection with the Arrangement contemplated by the Arrangement Agreement. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Torchlights directors in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on March 18, 2021. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Torchlights stockholders in connection with the Arrangement contemplated by the Arrangement Agreement will be set forth in the proxy statement for the Arrangement contemplated by the Arrangement Agreement when available. Information concerning the interests of Torchlights participants in the solicitation, which may, in some cases, be different than those of Torchlights equity holders generally, will be set forth in the proxy statement relating to the Arrangement contemplated by the Arrangement Agreement when it becomes available.
Item 9.01. Financial Statements and Exhibits.
|Exhibit 2.1||Amendment to Arrangement Agreement dated April 15, 2021|
|Exhibit 10.1||Amendment to Option Agreement dated April 15, 2021|
|Exhibit 99.1||Press Release, dated April 15, 2021|
|Exhibit 104||Cover Page Interactive Data File (embedded within the Inline XBRL document)|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Torchlight Energy Resources, Inc.|
|Date: April 15, 2021||By: /s/ John A. Brda|
|John A. Brda|