Torchlight Energy Resources Inc. (TRCH) said Sept. 30 it has closed its private placement of $3.7 million of newly issued convertible preferred stock.

Torchlight Energy issued $3.7 million in liquidation preference (face amount) of series B convertible preferred stock in a private placement exempt from registration under the Securities Act of 1933.

Proceeds will be used to accelerate the continued development of the Plano, Texas-based company's assets and provide additional liquidity for operations, said John Brda, Torchlight CEO.

The company currently holds interests in Texas, Kansas and Oklahoma. It recently entered into a joint venture with Founders Oil and Gas LLC to develop the Orogrande Project in the Permian Basin.

The capital was raised primarily from institutional investors.

"This round of funding is another milestone achieved and exemplifies investor confidence in Torchlight," Brda said in a statement.

"In conjunction with the announcement of our partnership with Founders Oil and Gas, we believe that Torchlight's capital structure is optimized to continue our various initiatives, including the highly anticipated continued development of our Orogrande asset," he added.