(Updates share movement to market close)
June 22 (Reuters) - Torchlight Energy Resources Inc slumped about 30% on Tuesday, nearly wiping off a surge in previous session that had prompted the oil and gas producer to raise its stock offering to $250 million.
Small-time investors have been piling in to Torchlight, the latest social media-hyped stock, which hit a record high of $10.88 on Monday. It has risen more than 10 times in value since the start of the year, but closed at $7 on Tuesday.
Torchlight said late Monday it was planning to raise $150 million more, on top of a $100 million stock offering that it announced last week along with a specia bit.ly/3zVN4Sbl dividend of preferred stock.
The company is being acquired by industrial materials maker Metamaterial Inc in a deal that analysts said will likely see its main business being sold or hived off.
Torchlight was also the second top-traded stock on Tuesday, with shares changing hands more than 213 million times.
The Plano, Texas-based company traces its roots back to Pole Perfect, incorporated in 2007 in Nevada to develop and market feminine fitness dance studios utilizing the advantages of pole dancing.
In November 2010, Pole Perfect bought Torchlight Energy and abandoned all of its previous business plans within the health and fitness industries before formally changing its name to Torchlight in 2011.
Torchlight, which had a net loss of $2.1 million in the first three months of this year, has warned repeatedly that it had substantial doubt about its ability to continue as a going concern.
The company produced 28 barrels of oil and 711,000 cubic feet of gas with total sales of $2,471 in the quarter to March 30. (Reporting by Arathy S Nair and Shariq Khan in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)