Why Is Meta Materials (MMAT) Stock Up 9% Today?


  • FINRA has approved the exchange of Next Bridge Hydrocarbons common stock for Meta Materials Series A Preferred Shares (MMTLP).
  • Each share of MMTLP is eligible to receive one share of Next Bridge.
  • Shares of MMAT stock are down by more than 25% year-to-date.
MMAT stock - Why Is Meta Materials (MMAT) Stock Up 9% Today?

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Shares of Meta Materials (NASDAQ:MMAT) opened higher by about 17% after the Financial Industry Regulatory Authority (FINRA) announced that it had approved the exchange of Meta Materials Series A Preferred Shares (OTCMKTS:MMTLP) for Next Bridge Hydrocarbons common stock.

The record date will still fall on Dec. 12 as announced earlier. However, the shares of MMTLP owned on Dec. 12 must be fully settled in order to be eligible for the exchange. FINRA explained:

“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”

The distribution date will follow shortly after after on Dec. 14. Each share of MMTLP is eligible to be exchanged for one share of Next Bridge.

MMAT Stock Accelerates Higher on FINRA Approval

Meta Materials previously announced that MMTLP shareholders who sell their shares after the record date but before the distribution date will be required to transfer their shares of Next Bridge to the buyer of their shares. Any shareholder who sells their shares on or before the record date will not be eligible for the exchange.

Following the distribution, MMTLP shares will cease to be tradable on the over-the-counter (OTC) market and lose all of their rights. In addition, the distributed shares of Next Bridge will not be publicly traded or be eligible for electronic transfer through clearing corporations. Next Bridge will operate as an independent public reporting company.

Next Bridge engages in the exploration, development and acquisition of oil and natural gas. The company currently has a key focus on an oil and gas project in the Orogrande Basin in West Texas. For the nine months ended Sept. 30, it reported revenue of $30,214 and a net loss of $4.76 million. Oil sales accounted for $14,323 of revenue, while gas sales accounted for $15,891. The net loss has brought the company’s total accumulated deficit to $72.95 million.

Meanwhile, some shareholders of MMAT have called for a short squeeze, although the numbers don’t exactly support their case. As of Nov. 15, there were a total of 7.65 million shares sold short with a value of $14.38 million. That’s equivalent to a short interest as a percentage of float of 2.4%, which isn’t considered a high figure. The caveat is the data is only accurate as of Nov. 15.

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/why-is-meta-materials-mmat-stock-up-9-today/.

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