Meta Materials direct offering

Meta Materials Secures $6M in Registered Direct Offering, Stock Dips

In a significant move today, Meta Materials Inc, an advanced materials and nanotechnology company, announced its entry into definitive agreements with institutional investors for a registered direct offering. The company is set to issue and sell 75.0 million shares of common stock at an offering price of $0.08 per share, accompanied by warrants allowing the purchase of an additional 75.0 million shares at an exercise price of $0.095 per share. These warrants are exercisable six months after the issuance date and expire five and a half years after.

The unveiling of this strategic financial maneuver has, however, triggered a notable decline in Meta Materials Inc’s stock value. Investors and market observers are closely monitoring the repercussions of this development.

At the time of this publication, Meta Materials Inc stock (MMAT) has witnessed a decline.
Meta Materials Inc
Current Price: $0.07
Change : -0.04
Change (%): (-32.64%)
Volume: 39.9M
Source: Tomorrow Events Market Data

The gross proceeds from this direct offering are anticipated to be $6.0 million, with Meta Materials Inc. earmarking these funds for the expansion of its technology commercialization and sales efforts. The company specifically aims to bolster initiatives in banknote and brand authentication, NPORE® and NCORE™ for Li-ion battery applications, and VLEPSIS® systems for wide area motion imagery. Additionally, the net proceeds will be allocated for general corporate purposes.

The closing of the offering is anticipated to take place around December 6, 2023, contingent upon the satisfaction of customary closing conditions. Serving as the exclusive placement agent for this offering is A.G.P./Alliance Global Partners.

This offering aligns with the shelf registration statement on Form S-3 (File No. 333-268282), originally filed with the Securities and Exchange Commission (SEC) on November 10, 2022, and declared effective by the SEC on November 18, 2022.

Moreover, as part of the agreement, Meta Materials Inc. has committed to amending certain existing warrants issued in June 2022. These warrants, allowing the purchase of up to 25,925,927 shares of common stock at an exercise price of $1.75 per share, will undergo modification effective upon the closing of the offering. Notably, warrants covering 23.0 million shares will have a reduced exercise price of $0.095 per share, exercisable immediately and expiring five years from the amendment date. Additionally, warrants for up to 2,925,927 shares will have a reduced exercise price of $0.095 per share, exercisable six months after the amendment date and expiring five and a half years thereafter.

This strategic financial move positions Meta Materials Inc. to strengthen its market presence and advance key technological innovations. The company’s focus on cutting-edge applications in areas such as battery technology and motion imagery reaffirms its commitment to pioneering advancements in the field of advanced materials and nanotechnology. Investors and industry analysts are keenly observing the unfolding developments and the impact on Meta Materials Inc.’s future trajectory.

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