All eyes are on Meta Materials (NASDAQ:MMAT) stock following the filing of a Form 8-K. In the filing, Meta “disavows” a tweet sent by CEO and President George Palikaras regarding a reverse stock split in order to satisfy the Nasdaq $1 minimum price guideline for continued listing.
Once again there are discussions on R/S. Look up my last response which still holds. There is not going to be an R/S for being below the threshold for as long as i am the CEO of $MMAT. My sources also say that @johnbrda & McCabe have ALL their shares intact. #KnowWhatYouHold🦋 pic.twitter.com/nQkrIa3m43
— George Palikaras (@palikaras) March 9, 2023
“The Company disavows the twitter statement by George Palikaras regarding whether the Company may decide to implement a reverse split in order to comply with Nasdaq continued listing requirements,” said Meta in the filing.
The Form 8-K seems to show that a reverse split is still in the cards despite the CEO’s statement.
Meta Materials Distances Itself From CEO’s Statement
On Aug. 25, 2022, the Nasdaq notified Meta Materials of its noncompliance with the $1 minimum price guideline. The company was given 180 calendar days, or until Feb. 21 of this year, to regain compliance. In order to regain compliance, the price of MMAT stock had to be at or above $1 for at least 10 consecutive business days before the deadline.
Between November and December of last year, the price of MMAT was consistently above $1. However, MMAT has now drifted below $1 again. If the price of MMAT is below $1 for 30 consecutive business days, then the Nasdaq will again notify the company of noncompliance.
Based on the current price action, it appears that MMAT will soon receive this notification. A scan of Meta’s recent U.S. Securities and Exchange Commission (SEC) filings does not yet show any receipt of the notification.
The price of MMAT has not closed above $1 since Feb. 2. Including today, March 15, that means that MMAT has not closed above $1 for 27 consecutive business days.
Shares of MMAT fell sharply following the announcement of an up to $100 million common stock offering on Feb. 10. At the time of the announcement, Meta estimated that it would offer 117.64 million shares based on the closing price of 85 cents on Feb. 9.
If this amount of shares were to be offered, total shares outstanding would reach 479.89 million. Meta disclosed that it would use the proceeds of the offering for working capital and the development of products, such as NANOWEB, Vlepsis and KolourOptik.
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.
