MMAT - MMAT Stock: Meta Materials Seeks Approval for Reverse Stock Split

2023-10-31 11:58:05 ET

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Shareholders of Meta Materials (NASDAQ: MMAT ) stock should take note, as the functional materials company will hold its annual meeting of stockholders on Dec. 11. The record date, or the date that shareholders must own shares in order to cast votes for the meeting, has been set to Oct. 16. A total of six proposals are up for vote at the meeting.

In the annual meeting filing, Meta also disclosed that it had 489.41 million shares of common stock outstanding. Of those shares, 37.29 million shares are attributed to exchangeable shares of MetaMaterial Exchangeco , which trade on the Canadian Securities Exchange . The company also disclosed certain beneficial shareholders, which includes former CEO and President George Palikaras with a 34.11 million share stake. In addition, both Thomas Welch and Anne Lambert own 44.62 million shares each, equivalent to a combined 18.2% stake.

MMAT Stock: Meta to Hold Annual Meeting of Stockholders on Dec. 11.

The first proposal for the meeting seeks to nominate eight directors to Meta’s Board of Directors, which includes Chairman John Harding, CEO Jim Fusaro and Steen Karsbo. Next, Proposal 2 details the ratification of KPMG as Meta’s independent registered public accounting firm.

Proposal 3 is where things get serious, as Meta seeks approval for a reverse split in a range between 1-for-5 and 1-for-35. The purpose of this proposal is to buoy shares of MMAT stock in order to meet the Nasdaq minimum bid requirement of $1. Nasdaq has provided Meta with a deadline of March 18, 2024 for its shares to close at or above $1 for at least 10 consecutive trading days.

“If we are not in compliance by March 18, 2024, Nasdaq staff will provide written notification that our securities will be delisted,” explained Meta. “At that time, we may appeal the staff’s determination to a hearings panel.”

Moving on, Proposal 4 seeks to issue shares in excess of 19.99% of outstanding stock to Lincoln Park Capital Fund . In September, the two parties entered into a purchase agreement that gives Meta the right, but not the obligation, to sell Lincoln Park up to $50 million worth of MMAT over a 30-month period.

Finally, Proposal 5 involves increasing the maximum number of shares under the 2021 Equity Incentive Plan by 50 million shares, while the last proposal looks to transact business as usual prior to the meeting.

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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 .

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