Meta Materials Justifies Need for Capital Raise, Higher Share Count in New Letter


  • In a letter to shareholders, Meta Materials (MMAT) CEO and President Uzi Sasson stressed the importance of raising capital in order to commercialize Meta’s products.
  • Meta will hold a special meeting on April 15 to vote on increasing its authorized common stock to 250 million from 10 million.
  • MMAT stock is down by 60% so far this year.
MMAT stock - Meta Materials Justifies Need for Capital Raise, Higher Share Count in New Letter

Source: ArtemisDiana /

Meta Materials (NASDAQ:MMAT) will hold its special meeting of stockholders on April 15. The meeting has one material proposal, which is to increase the total number of authorized shares of MMAT stock to 250 million from 10 million. This would mark a significant increase of 2,400%. Following a 1-for-100 reverse stock split and a $3.4 million direct offering, shareholders weren’t exactly happy to hear about the proposal and its dilutive effects.

Meta Materials CEO and President Uzi Sasson addressed this concern in a letter to shareholders, stressing that “commercialization requires capital.”

“That is a basic premise upon which we are requesting your approval at the upcoming special stockholders’ meeting for an increase in the total number of common shares we are authorized to issue,” said Sasson. “We don’t take this proposal lightly and intend to be judicious in issuing future shares to meet our commercialization and working capital needs.”

MMAT Stock: Meta CEO Uzi Sasson Pens Letter to Shareholders

Sasson believes that Meta’s products have potential and that, in order to meet production and commercialization requirements, the company needs more money. Sasson provided several examples, such as its QUANTUM stripe, NANOWEB film, NPORE and NCORE technology and the expected completion of its VLEPSIS flight testing in March.

“Broad-scale production of our products is capital intensive, replete with long lead-time components, machinery and equipment costs and raw material sourcing unique to each product line,” said the CEO.

Sasson also noted that Meta will hold a question-and-answer session soon to provide insight on its commercialization efforts and authorized share increase proposal. In early April, Meta will host a webcast to discuss its 2023 financial results.

The company has already reported its preliminary fourth-quarter earnings, with revenue growing by 55% year-over-year (YOY) to $2.2 million. Loss from operations is expected to be around $14.9 million compared to a loss of $24 million a year ago. In addition, Meta also incurred an expected non-cash impairment of long-term assets, of which the amount is still to be determined.

Meta added that its focus is currently on increasing revenue, cutting costs and monetizing both core and non-core assets.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks. 

Read More:Penny Stocks — How to Profit Without Getting Scammed

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 Publishing Guidelines.  

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC