Meta Materials’ (NASDAQ:MMAT) annual meeting of stockholders on Dec. 11 is quickly approaching. At the meeting, the votes for its reverse stock split proposal in a ratio between 1-for-5 and 1-for-35 will be revealed.
The result of the proposal will be extremely important for MMAT stock, as the company received a Nasdaq delisting determination last month due to its shares having a closing bid price of 10 cents or less for 10 consecutive trading days. Meta Materials requested a hearing in front of the Nasdaq Hearings Panel to appeal the decision, which Nasdaq accepted. Nasdaq subsequently scheduled a hearing for March 21, 2024. As a result, any delisting action will be stayed until the panel makes up its mind at the hearing.
Meta is also on the hook for its shares closing below $1 for 30 consecutive trading days. The company was given until March 18, 2024 to regain compliance. 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.
MMAT Stock: Meta Provides Statement on Reverse Stock Split Proposal, Business Status
Earlier this week, Meta released a statement on the upcoming reverse stock split proposal and company initiatives. The company explained that a reverse split “may be necessary” in order for MMAT stock to continue trading on the Nasdaq and urged shareholders to vote in favor of the proposal.
“We have sought to address shareholder concerns and queries, hereby clarifying the necessity for the reverse stock split,” said Chairman Jack Harding. “We hope that you will join us in approving this proposal, which is intended to place the Company on a more sustainable path forward.”
Meta also provided several business updates. It pointed out that it had designed an anti-counterfeiting security feature for a “confidential G10 central bank.” The bank signed a multi-year agreement for this feature with a maximum value of $41.5 million over five years. In August and September, Meta also received $8.3 million of purchase orders for the feature, bringing its to-date total to $22.7 million.
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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.