After months of struggling, Meta Materials (NASDAQ:MMAT) is making a change at the leadership level. In a statement released this morning, the functional materials company announced that Jim Fusaro is replacing George Palikaras as CEO, effective immediately. Meta Materials also confirmed that the former CEO has left the company entirely.
Fusaro is an industry veteran with “35 years of experience in solar, semiconductor, advanced materials, and aerospace.” His appointment should be good news for investors, but so far the news hasn’t helped boost shares. Indeed, MMAT stock has been struggling since markets opened today. This raises questions regarding the stability of Meta Materials, a firm that has already been linked to controversy in the recent past.
Will the hiring of Fusaro as CEO end up being a boon for investors in Meta Materials? Let’s take a closer look.
What’s Happening With MMAT Stock?
To say that it has been a volatile year for Meta Materials would be an understatement. MMAT stock has risen and fallen consistently throughout the past six months without demonstrating any actual growth. Of course, news of a new CEO can often give a stock a slight bump, but in this case, the opposite is true. As of this writing, MMAT is down more than 6% for the day. Shares have also shed more than 80% year-to-date (YTD).
Fusaro’s resumé includes names like Nanostone Water, Avnet (NASDAQ:AVT) and Honeywell International (NASDAQ:HON). The executive holds degrees from Arizona State University and Rensselaer Polytechnic Institute as well. Jack Harding, Meta Materials’ Chair of the Board of Directors, said the following about Fusaro’s appointment:
“On behalf of the Board of Directors, it is my pleasure to welcome Jim Fusaro as CEO of Meta Materials. He brings a wealth of leadership experience and a proven track record of driving high revenue growth. In his new role, Jim will be responsible for overseeing the strategic direction of the company and accelerating its commercial production.”
Harding also noted that the company is grateful to Palikaras for his contributions, stating that “his leadership has been instrumental” in building the foundation of Meta Materials. As of now, Palikaras has issued no statement about his seemingly abrupt departure. All that is currently known is that Meta’s board removed the former CEO on Oct. 10, according to a report from StreetInsider.
A New Leader for a Troubled Company
If Fusaro wants to usher in a turnaround for Meta Materials, he will have a difficult job. The company has struggled to be a strong performer and, since the Financial Industry Regulatory Authority (FINRA) halted trading of its preferred shares in December 2022, shares have traded primarily on meme stock momentum. This checkered history has likely compelled many investors to avoid MMAT stock, as has the fact that shares trade at penny stock levels. Over the past six months, MMAT peaked at just 27 cents per share.
This poor performance has led to the strong possibility that MMAT stock may be delisted from the Nasdaq. True, the company recently received an extension to regain compliance with the exchange. But one month later, shares are still down and show no signs of improving. All of this suggests that Fusaro will have to take some drastic steps if he wants to turn things around.
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On the date of publication, Samuel O’Brient 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.
