Meta Materials (NASDAQ:MMAT) stock is down 3% after the Nasdaq staff provided the company with a delisting determination notification. On Nov. 27, Nasdaq informed Meta that MMAT stock had closed at or below 10 cents or less for 10 consecutive trading days as of Nov. 24. Based on Nasdaq Listing Rule 5810(c)(3)( )(iii), Nasdaq stated that MMAT stock should be delisted from the exchange. Meta was given until Dec. 4 to appeal the decision.
On Nov. 28, Meta submitted a hearing request in front of the Nasdaq Hearings Panel to appeal the decision. The panel accepted and scheduled the hearing for March 21, 2024. In the meantime, MMAT will continue to trade on the Nasdaq while the company awaits the panel’s decision.
“There is no assurance that a favorable decision will be obtained from the Panel at the hearing,” warned Meta Materials.
MMAT Stock: Nasdaq Intends to Delist Meta Materials
MMAT stock trading below 10 cents isn’t Meta’s only compliance issue. On March 20, the company received a noncompliance notice due to its shares closing below $1 for 30 consecutive trading days. Meta was given 180 calendar days to resolve the issue, or until Sept. 18. In order to regain compliance, MMAT must close at or above $1 for at least 10 consecutive trading days, but generally no more than 20 consecutive trading days.
Meta failed to regain compliance by Sept. 18. However, Nasdaq informed the company that it was eligible for another 180-day extension, or until March 18, 2024, to regain compliance.
March will be a paramount month for Meta, as it has two major Nasdaq compliance events during that month. The deadline for Meta’s second compliance period ends before the date of the hearing by three days.
Meta has failed to turn a profit in recent years, which factors into why MMAT stock is down so much this year. During the third quarter, revenue tallied in at $2.2 million, down by 10% compared to a year ago. Revenue for Q2 2023 came in at $2 million. For the fourth quarter, analysts expect revenue of around $3 million and a GAAP EPS loss of 2 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.