Shares of MMTLP have ceased trading for quite some time now, although its former shareholders have not forgotten about the stock. In a recent congressional meeting hosted by the House Financial Services Committee on the oversight of the Securities and Exchange Commission (SEC), Rep. Ralph Norman asked SEC Chair Gary Gensler a series of questions concerning the controversial stock.
First, Norman asked Gensler if he is familiar with the company, to which Gensler responded that he is. Next, Norman asked if Gensler is aware of MMTLP’s aggregate share count as of the close of market on Dec. 8, 2022. Gensler responded, “I don’t know,” to which Norman asked if the SEC knows the answer to this question. Gary stated that this information “may be a matter of public record.”
MMTLP Stock: Rep. Ralph Norman Questions Gary Gensler on Aggregate Share Count
The clip, which was posted on X, the platform formerly known as Twitter), by user @unusual_whales, ends by Norman saying that he will try to write Gensler another letter concerning MMTLP.
The Financial Industry Regulatory Authority (FINRA) had previously addressed the MMTLP fiasco in a FAQ post on its website. In the post, FINRA noted that it has the power to halt trading in an over-the-counter (OTC) security when it believes that an extraordinary event has occurred or is ongoing that will have a material effect on the security. FINRA made this determination for MMTLP and halted shares on Dec. 9.
So, why exactly was MMTLP halted on Dec. 9 when shareholders as of Dec. 12 were eligible to receive the Next Bridge distribution? That’s largely attributable to the fact that securities transactions typically settle within two business days, based on SEC policies.
“Therefore, for purposes of the Next Bridge / MMTLP corporate action, only those trades in MMTLP that were executed on or before December 8 typically would have settled in time to establish the purchaser as a new holder of the shares as of December 12,” explained FINRA. As a result, any buys of MMTLP past Dec. 8 would have not settled in time for the buyer to receive shares of Next Bridge.
FINRA also goes on to highlight that it did not cancel shares of MMTLP. Rather, Meta Materials (NASDAQ:MMAT), the issuer, was responsible for this, effective as of Dec. 14, 2022.
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.