As of February 21, there are only 1,824 authorized and outstanding shares of MMAT stock.
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There are currently 10 million authorized shares in existence. metamaterial (NASDAQ:MMAT) Stock. However, this number could increase by 2,400% to 250 million shares at Meta’s special general meeting on April 15th.
During the meeting, the voting results for the three proposals will be revealed. However, the only significant proposal is to increase the number of authorized shares from 10 million to 250 million. The other two proposals are conventional and include canceling the meeting if the approved share increase proposal does not receive enough votes and conducting business as usual before the meeting.
MMAT Stock: Metamaterial Announces Proposal to Increase Authorized Shares by 2,400%
Metamaterials had previously conducted a reverse stock split on January 29 to restore compliance. Nasdaq’s Minimum bid requirement is $1. On February 12, Nasdaq notified the company that it was fully compliant.
“As of February 21, 2024, the Company had 1,824 shares of authorized and unissued common stock as a result of reverse stock splits and capital raising activities to fund continued business operations and product development. It is not held for any other purpose, but this is not sufficient for the company’s ongoing needs and operations,” Mehta said.
Earlier this month, Meta announced a $3.4 million direct offering to one institutional investor. The company also announced changes to its stock acquisition rights to purchase up to 324,075 MMAT shares. As part of the Order Amendment, Meta agreed to make a proposal to increase the number of shares available for issuance to 250 million shares at the next annual or special general meeting. Institutional investors who participated in the offering agreed to use “commercially reasonable efforts” to vote in favor of the proposal.
Mehta cited several reasons for increasing authorized shares. These include financing to support the business, stock-based compensation for employees, potential strategic transactions, and “arrangements with third parties to meet our existing payment obligations in common stock rather than cash.” Includes potential negotiations.
Meta Materials added that there are currently no plans to issue stock if the proposal is approved. However, issuing additional shares will still lead to dilution.
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On the date of publication, Eddie Pan did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
