All eyes are on Meta Materials (NASDAQ:MMAT) stock following the company’s announcement that it will raise up to $100 million in an at-the-market (ATM) offering via the sale of common stock. That’s equivalent to an additional 117.64 million shares based on the closing price of 85 cents on Feb. 9. The actual number of shares offered will depend on the share price at the time of the offering.
As of Dec. 31, there were a total of 362.24 million shares outstanding. That excludes 33.60 million shares of common stock issuable upon conversion of outstanding stock options, 6.50 million shares issuable upon the vesting of restricted stock units, 3.64 million shares issuable upon the redemption of deferred stock units, 39.92 million shares issuable upon the exercise of warrants and 13.57 million shares “reserved for future issuance.”
MMAT shareholders should expect this offering to occur from “time to time through or to our sales agents.”
Meta Materials Announces MMAT Stock Offering of Up to $100 Million
Proceeds from the ATM offering will be used to advance the development of Meta’s portfolio of products, such as NANOWEB, Vlepsis, A/Rfusion and KolourOptik. Additionally, the proceeds will be used toward working capital, capital equipment purchases and “general and administrative expenses.” At the same time, the offering will also dilute existing shareholders.
In addition to the ATM offering news, Meta also disclosed its preliminary unaudited estimates for the fourth quarter. As of Dec. 31, the company had $11.8 million in cash, cash equivalents and short-term investments. Consolidated revenue for the quarter tallied in at $1.4 million as well, bringing full-year revenue to $10.2 million.
In addition, the company failed to turn a profit during 2022. It reported a Q4 consolidated comprehensive loss of between $21 million and $30 million. That would bring the full-year loss to between $91 million and $100 million.
Finally, for earnings per share (EPS), Meta Materials estimates a Q4 loss of between 6 cents and 9 cents, which would bring the full-year EPS loss to between 26 cents and 29 cents. The final results for Q4 will be reported on March 16 after the market close.
In today’s high interest rate environment, unprofitable companies are being scrutinized more than ever. With an up to $100 million offering on the way, investors may want to watch MMAT stock from the sidelines.
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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.