Meta Materials (NASDAQ:MMAT) stock climbed as high as 10% this morning after the company announced another purchase order from its confidential G-10 central bank customer. The purchase order is for Meta’s nano-optic security business. This provides authentication and anti-counterfeiting services for currencies, government documents and brands.
CEO George Palikaras estimates that the total addressable market (TAM) for Meta’s banknote authentication and brand protection services was worth $1.32 billion last year. By 2026, the CEO expects this TAM to increase to $1.55 billion.
In addition, the order will add on $855,000 to the central bank’s existing $4.3 million base award with Meta. The previous agreement has a maximum value of $41.5 million over five years. This will bring Meta’s total orders received from the bank to about $14.4 million “for continued work under the multi-year agreement.”
Palikaras had the following to say about the news:
“We are pleased with the progress of this prestigious and important contract to Meta Materials, the largest in the history of banknote security feature development. We are looking forward to continuing our successful working relationship with the Bank over the next years.”
MMAT Stock: Meta Materials Receives Purchase Order From G-10 Central Bank Customer
Meta also announced that it plans on commercially releasing its KolourOptik technology this year. Per Meta’s release, KolourOptik “combines multi-directional movement, 3D stereo-depth, high resolution, and multiple colors” to create anti-counterfeiting measures for banknotes.
All told, the purchase order comes as welcome news for Meta. It follows the announcement an up to $100 million at-the-market (ATM) common stock offering as well as the release of preliminary unaudited estimates for the fourth quarter earlier this week. Based on the closing price of Feb. 9 — the day before the offering announcement — $100 million is equivalent to about 117.64 million shares. Meta Materials had 362.24 million shares outstanding as of Dec. 31, which means that shares outstanding would increase by about a third if the entire $100 million is utilized.
For Q4, Meta estimates consolidated revenue of $1.4 million, which would bring full-year 2022 revenue to $10.4 million. Still, the company remains unprofitable, estimating a Q4 consolidated comprehensive loss of between $21 million and $30 million. That would bring Q4 earnings per share (EPS) to a loss of between 6 cents and 9 cents.
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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.