Meta Materials (NASDAQ:MMAT) stock is down more than 10% today ahead of the company’s upcoming spinoff and exchange of Next Bridge Hydrocarbons common stock for Meta Materials Series A Preferred Shares (OTCMKTS:MMTLP). Yesterday, the Financial Industry Regulatory Authority (FINRA) announced that it had approved the exchange. The record date of the spinoff will fall on Dec. 12, while the distribution date will be on Dec. 14. However, investors should take note of the following statement issued by FINRA:
“Purchases of MMTLP executed after 12/8/22 will not receive the distribution. Will not be quoted Ex. [NO EX-DIVIDEND DATE] MMTLP shares will be canceled effective 12/13/22.”
Meta Materials previously announced that shareholders who sell their MMTLP stake after the record date but before the distribution date will be required to transfer their shares of Next Bridge to the buyer of their MMTLP stake.
After the distribution date, shares of MMTLP stock will be removed from the over-the-counter () market and lose all of their rights. The newly received shares of Next Bridge will not be tradable, while the company will operate as an independent public reporting company. During the nine months ended Sept. 30, Next Bridge reported $30,214 of revenue and a net loss of $4.76 million.
5 Investors Betting Big on MMAT Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 94 13F filers reported owning MMAT stock, a decline of four filers from the previous quarter. Meanwhile, the institutional put/call ratio sits at 0.27, down from 0.29 during Q2. That’s equivalent to 537,616 puts and about 2 million calls, implying a bullish options stance.
With that in mind, let’s take a look at the investors betting big on MMAT stock. Please note that this list only includes investors who filed a Q3 position update. For example, Whale Wisdom reports that insider Greg McCabe owns 9.8 million shares, but that figure is only accurate as of Q1 2021.
- Thomas Welch, 10% owner: 22.16 million shares. Welch converted 500,000 Metamaterial Exchangeco exchangeable shares into 500,000 shares of MMAT stock on Oct. 25. His position consists of 2.44 million shares of MMAT stock and 19.71 million exchangeable shares.
- BlackRock (NYSE:BLK): 5.53 million shares. BlackRock purchased 1.52 million shares during Q3.
- Vanguard: 5.4 million shares. Vanguard purchased 1.96 million shares during Q3.
- State Street (NYSE:STT): 3.35 million shares. State Street sold 9.45 million shares during Q3.
- Millennium Management: 3.15 million shares. Millennium sold 2.33 million shares during Q3.
It should also be noted that CEO Georgios Palikaras reported directly owning 1.15 million shares on Aug. 11.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.