Confused about MMAT and MMTLP stock? Want to know what is happening with Meta Materials?
The article aims to identify the issues related to MMAT and MMTLP stock and inform people about the latest update.
Meta Materials Inc., or Meta, is an advanced high-tech company that develops high-performance functional materials with intelligent surfaces based on their core capabilities, holography, lithography, wireless sensing, ARfusion, and PLASMAfusion.
This new functional and next-generation material derived with the help of applied physics and innovative design is called metamaterials.
Since they are cost-effective, sustainable, and AI-driven, they can develop functional prototypes and solutions much faster.
The company aims to deliver state-of-the-art products with breakthrough technology to their customers in consumer electronics and the 5G communications, aerospace, health, automotive, and clean energy sectors.
They have already worked and collaborated with leading global organizations such as Airbus, Satair, Lockheed Martin, and Sekisui. They have also delivered a high-tech security feature called LumaChrome for 30 banknote denominations for a top-10 Central Bank.
Their innovation and advanced technology have been widely appreciated, and they received many accolades, including being named in the Global Cleantech 100 and Lux Research Innovator of the Year in 2021.
Company Name | Meta Materials Inc. |
Founded in | 2007 |
Headquarters | Dartmouth, Nova Scotia, Canada |
President & CEO | George Palikaras |
Tickers | NASDAQ: MMAT, MMTLP (Now Canceled) |
Number of Employees | 130 |
Market Capitalization | $178.9 million |
Revenue | $11.04 million |
Net Assets | $420 million |
Company Website |
When Meta Materials Inc. merged with Torchlight Energy Resources on June 2021, it had a common stock MMAT that got listed on NASDAQ and an unlisted preferred share named MMTLP.
As unlisted shares can be traded under federal law, they started trading in the OTC market.
On Jul 15, 2022, they filed to register a fully owned subsidiary of Meta Materials called Next Bridge Hydrocarbons with the SEC.
According to the registration statement, each shareholder of MMTLP would have received one share of Next Bridge Hydrocarbons for one share of MMTLP held. They also declared they would become an independent public reporting company post-corporate action.
On Nov 23, 2022, Meta announced that by Dec 12, 2022, the holder of each Series A Preferential Share of Meta, i.e., MMTLP, will receive a Next Bridge common stock and that after Dec 14, MMTLP shares would be automatically canceled. The shareholders will have no right to MMTLP shares after the cancelation process.
FINRA was informed about the corporate action as a requirement under federal law. Based on the information provided, FINRA issued a notice that the transfer of shares from MMTLP to Next Bridge will occur for those who have settled positions on Dec 12. 2022. It also clarified that any purchasers after Dec 13, 2022, will not be entitled to receive the shares.
It further notified that FINRA, on Dec 13, 2022, would delete the MMTLP symbol, and the MMTLP stock would be canceled on the distribution date, i.e., Dec 14, 2022.
FINRA halted the quoting and trading of MMTLP stocks on Dec 9, 2022, to protect the investors as part of their process.
As per the rules, FINRA is allowed to halt any company’s quoting and trading operations if it identifies that the trading of stocks of that particular company can cause major disruption in the marketplace or uncertainty in the settlement and clearance process due to an ongoing rare event or one that has already occurred.
FINRA issued a corporate action notice based on these criteria and halted trading of MMTLP stocks on Dec 9, 2022. They were worried that if the trading of MMTLP stock continued after Dec 8, 2022, there could have been a situation where buyers of the MMTLP stocks wouldn’t have realized that the shares were about to be canceled by Meta Materials.
They may not receive the shares before they were canceled, and as a result, they would not be recorded as MMTLP holders on Dec 12, 2022, and, therefore, wouldn’t receive the Next Bridge shares as part of the corporate action distribution process.
Yes, according to FINRA’s website, which was updated on Feb 16, 2023, the MMTLP trading halt placed on Dec 9, 2022, ended on Dec 13, 2022, after the deletion of the symbol by FINRA.
FINRA did not cancel the MMTLP shares. Its issuer Meta Materials canceled it on Dec 14, 2022.
It is not within the purview of FINRA to cancel any securities, as it is the job of the issuer of that security. However, just as FINRA can assign symbols to unlisted securities, it can also un-assign or delete symbols.
But, FINRA had accessed and checked the blue sheets of Meta Materials on December 5, 2022, although they were investigating the market makers, not Meta Materials. (Source: Forbes.com)
They can also list the companies in the “Threshold Securities List” to protect the retail investors if the Threshold Security criteria are met, i.e., they believe there is a potential for abusive naked shorting.
In the case of MMTLP, FINRA deleted its symbol on Dec 13, 2022, because of its impending cancelation as declared by its issuers owing to the corporate action of MMTLP and Next Bridge.
On De 8, 2022, the issuer Meta Materials amended their original corporate action announcement of Dec 6, 2022, that they will delete the MMTLP symbol instead of canceling it on Dec 13, 2022, since the issuer themselves are responsible for canceling the Series A Preferred Stock.
Every trade execution has a T+2 settlement cycle, so if FINRA didn’t halt trading activity on Dec 9, 2022, the trades executed after Dec 8, 2022, wouldn’t have settled on time, and the buyer would not receive his MMTLP shares by Dec 12, 2022.
Any such trades not settled by Dec 12, 2022, needed to be resolved by a broker-to-broker process outside DTC.
Also, as per FINRA’s statement, “securities transactions typically must settle within two business days in accordance with SEC rule.” (source: businessinder.com)
There would have been a lot of confusion and issues regarding that, as the shares could have been canceled before the resolution process began.
For example, an average investor purchasing MMTLP shares after Dec 8, 2022, may not be aware that they would not be the holder of MMTLP shares as they will be canceled on Dec 13, 2022
Hence they will not be entitled to the Next Bridge shares that will be distributed to holders of MMTLP stocks. Also, the purchased MMTLP shares would eventually be canceled.
Learn About:
Revenue (ttm) | 11.04M |
Revenue Per Share (ttm) | 0.04 |
Quarterly Revenue Growth (yoy) | 328.90% |
Gross Profit (ttm) | 3.41M |
EBITDA | -69.29M |
Net Income Avi to Common (ttm) | -93.42M |
Diluted EPS (ttm) | -0.3300 |
Quarterly Earnings Growth (yoy) | N/A |
Total Cash (mrq) | 31.79M |
Total Cash Per Share (mrq) | 0.09 |
Total Debt (mrq) | 78.92M |
Total Debt/Equity (mrq) | 20.30 |
Current Ratio (mrq) | 1.29 |
Book Value Per Share (mrq) | 1.08 |
Operating Cash Flow (ttm) | -67.7M |
Levered Free Cash Flow (ttm) | -39.43M |
Legend: ttm – trailing twelve months, yoy – year over year, mrq – most recent quarter
As we can see from the income statement, they had a revenue of $11.04 million as of 2022, which is low given the lofty promises they made to their investors; however, they had a gross profit of $3.41 million.
Their EBITDA, or Earnings Before Interest, Tax, Depreciation, and Amortization, is -$69.29 million, which is extremely high and indicates operational challenges.
It is further cemented by the Total Debt to Equity ratio on the balance sheet, which is 20.30. It is extremely high compared to a standard of 2 to 2.5 (considered healthy), indicating that the company is having difficulties covering its liabilities.
52-Week Change | -71.51% |
S&P500 52-Week Change | -12.80% |
52 Week High | 2.3400 |
52 Week Low | 0.4800 |
50-Day Moving Average | 0.8494 |
200-Day Moving Average | 1.0885 |
Avg Vol (3 month) | 6.4M |
Avg Vol (10 day) | 12.4M |
Shares Outstanding | 362.25M |
Implied Shares Outstanding | N/A |
Float | 319.3M |
% Held by Insiders | 15.07% |
% Held by Institutions | 11.21% |
Shares Short (Feb 27, 2023) | 40.88M |
Short Ratio (Feb 27, 2023) | 6.6 |
Short % of Float (Feb 27, 2023) | 14.51% |
Short % of Shares Outstanding (Feb 27, 2023) | 11.29% |
Shares Short (prior month Jan 30, 2023) | 34.49M |
We can also see that the MMAT stock has had a huge negative price movement, dropping almost 71.51% after reaching a high of $2.34 and a low of $0.48 in 52 weeks.
At the time of writing, it is trading at a current market price of $0.4944. There are almost 362.25 million outstanding shares.
The company holder information is as follows:
Some of the top holders of the company are as follows:
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| State Street Corporation | 14,491,015 | Dec 30, 2022 | 4.00% | 7,210,728 |
| Blackrock Inc. | 5,971,255 | Dec 30, 2022 | 1.65% | 2,971,296 |
| Vanguard Group, Inc. (The) | 4,865,592 | Dec 30, 2022 | 1.34% | 2,421,118 |
| Geode Capital Management, LLC | 3,327,926 | Dec 30, 2022 | 0.92% | 1,655,975 |
| Mitsubishi UFJ Kokusai Asset Management Co., Ltd | 1,522,221 | Dec 30, 2022 | 0.42% | 757,457 |
| Millennium Management Llc | 869,887 | Dec 30, 2022 | 0.24% | 432,855 |
| Swiss National Bank | 784,100 | Dec 30, 2022 | 0.22% | 390,168 |
| Northern Trust Corporation | 743,604 | Dec 30, 2022 | 0.21% | 370,017 |
| Susquehanna International Group, LLP | 397,486 | Dec 30, 2022 | 0.11% | 197,789 |
| Rafferty Asset Management, LLC | 368,360 | Dec 30, 2022 | 0.10% | 183,295 |
The MMTLP stock is not trading as it was canceled by its issuers Meta Materials, on Dec 14, 2022, as part of the MMTLP/Next Bridge Hydrocarbons Corporate action.
No, you cannot buy MMTLP stock as it was canceled by its issuers Meta Materials, on Dec 14, 2022, following the corporate action announced by the company where each shareholder was issued Next Bridge common stocks for one MMTLP Stock.
MMTLP stock has been named in a lawsuit regarding the Pump and Dump activities of the broker. According to Bloomberg, SEC has charged a trading group and @MrZackMorris for pumping different stock tickers on their Discord channel.
Read More:
Meta Materials is an innovative company that produces high-tech products. However, the way they swapped shares through a corporate action and promoted their shares did not instill a lot of confidence in the company. Their financials also tell the same story.
Suppose they want to establish themselves as a pioneer in the nanotech industry and become an industry leader. In that case, they need to overcome these challenges, establish themselves and build their trust among the shareholders.
Disclaimer: All the information presented in the article has been collected independently by BitMoneyAlpha and has not been reviewed or approved by Meta Materials. The product information may vary. Please check the company website for the latest information. The statements and opinions expressed in this article belong to the author and do not necessarily represent the views or opinions of any company or organization. The content is for informational purposes only. It is not financial advice. So, before investing, do your due diligence and always invest what you are comfortable losing, as all investments are your responsibility.
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