Meta Materials (NASDAQ:MMAT) stock is falling on Wednesday after the smart materials company revealed plans for a reverse stock split.
A press release from Meta Materials notes that the company plans to enact a 1-for-100 reverse stock split next week. That will see its shares start trading on a split-adjusted basis on Monday.
Meta Materials notes that its shares will continue to trade under the MMAT stock ticker. However, the company’s shares will switch to “59134N302” as its new CUSIP number.
What’s Behind the MMAT Reverse Stock Split?
Meta Materials is taking this action to boost the price of the company’s stock. This is part of its plan to get the price of MMAT shares above the $1 minimum required to remain on the Nasdaq Capital Market.
When the reverse stock split goes into effect, the number of MMAT shares will drop from 564 million to roughly 5.64 million. This will also reduce the number of authorized shares from 1 billion to 10 million. However, this doesn’t change the percentage of stakes investors have in the company.
MMAT stock is down 11.7% as of Wednesday morning, with more than 3 million shares traded. The company’s daily average trading volume is still well above that at about 15.4 million shares.
Investors seeking out even more of the most recent stock market stories will want to stick around!
We have all of the hottest stock market news traders need to know about on Wednesday! A few examples include why shares of Evaxion Biotech (NASDAQ:EVAX) and Getaround (NYSE:GETR) stock are up as well as the biggest pre-market stock movers this morning. All of that info is available at the following links!
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On the date of publication, William White did not have (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.
