He does, however, list the following experience: in Finance from Southern Illinois University, Carbondale in 1988, he does not appear to have any experience in the oil and gas sector, nor does he list the "20 years of investment banking experience" that Torchlight touts on their website. Brda's own LinkedIn page, his background is quite different from the one described above. in Finance from Southern Illinois University, Carbondale, IL." Brda, either originated, invested in, or placed over $70 million in financings. Brda has the knowledge and experience to execute and ensure success for his client companies. With over 20 years of investment banking experience, including 5 years as a fund manager, prior to becoming a consultant, Mr. Core competencies include capital formation, equity and debt financings, strategic business development and securities regulation matters. Brda, who also co- founded the Company, has been the Managing Member of Brda & Company, LLC since 2002, which provides consulting services to public companies - with a focus in the oil and gas sector. He was promoted to CEO in December of 2014 with the exit of our co-founder Tom Lapinski. Brda has been our President and Secretary and a member of the Board of Director since January 2012. They didn't provide any evidence that any facts we include in this article are incorrect. Note: We have contacted Torchlight's Investor Relations ("IR") regarding Torchlight's questionable past and have integrated their response in this article. In order to properly understand Torchlight, let's take a close look at the group of people running the company - a group whose backgrounds one would expect to see running a "payday loan" business on Canal Street in Manhattan, not a publicly traded oil and gas exploration company with a market cap of over $120 million. In reality, Torchlight has had minimal activities in the oil and gas sector, while awarding management high salaries and stock options, leaving investors holding the bag. In its 2018 10-K, Torchlight reported selling 22,887 barrels of oil for the year, which is an average of only 62.7 barrels per day. Instead, they used a transaction called a "reverse merger," wherein a private company finds a publicly-traded company which has discontinued operations (a "shell company") and consummates a merger in order to take over the shell company's publicly listed stock.ĭespite describing itself as a company which "engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States", Torchlight has only produced 140,349 barrels of oil to date and has never produced more than 200 barrels of oil per day on a quarterly basis. Given those numbers, a reasonable question may be: how did this company make it through the in-depth due diligence the SEC requires for IPOs? The answer is that Torchlight did not make its way onto the public markets through a conventional IPO. Since commencing operations in 2013, the company has generated only $10.7 million in revenue while incurring $52.8 million in operating expenses and paying $14.4 million in interest expense, for a cumulative net loss of $83.9 million. (TRCH) because we believe it is a classic pump-and-dump run by a questionable management team in our opinion, with some of the leadership having previous run-ins with securities regulators. We are short Torchlight Energy Resources, Inc.
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