![]() That wouldn’t solve the company’s financial problems, however. It’s possible that Meta Materials might someday enact a reverse share split in order to avoid immediate delisting. Meta Materials Stock Could Easily Lose More Value Unfortunately, the aforementioned problems indicate that the shareholders’ pain might not end soon. The Nasdaq exchange has sometimes delisted stocks that stay under $1 for an extended period. Along with that, the company expressed “substantial doubt” about its ability to maintain “compliance with NASDAQ continued listing requirements.” In addition, Meta Materials issued a dreaded “going concern” warning. That might sound fine, but Meta Materials also racked up $24.8 million in operating expenses during that time. Second, during 2022’s fourth quarter (Meta Materials’ most recently reported quarter), the company generated $1.4 million in total revenue. First, the company has consistently been unprofitable. ![]() There are other reasons for prospective investors to be wary of Meta Materials in 2023. Yet, Meta Materials is willing to print up plenty of new shares, even if the current shareholders might not be too happy about that. On top of that, the public offering underwriters were given a “30-day overallotment option” to buy an additional 12,500,000 common stock shares “and/or warrants to purchase up to an additional 12,500,000 shares of common stock.”Īs the old saying goes, you can’t print your way to prosperity. Perhaps that’s because, in April, Meta Materials disclosed its plans to issue (via a public offering) “83,333,334 shares of its common stock and warrants to purchase up to an aggregate of 83,333,334 shares of common stock.” In fact, the share price has been cut in half since that time. Those mid-March news items didn’t help MMAT stock at all. ![]() That sounds like a positive development, though Meta Materials still hasn’t provided an updated press release disclosing the name of the OEM. ![]() Meta Materials emphasized that many of those patents pertain to battery materials.Īlso, at around the same time, Meta Materials signed an agreement to develop “battery separator materials” with a unnamed battery original equipment manufacturer. For what it’s worth, the company filed its 500th patent earlier this year. To be fair and balanced, we’ll start off with the good news about Meta Materials. ![]()
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