Meta Materials Announces $6M Registered Direct Offering Of 75M Shares At A Price Of $0.08/Share And Accompanying Warrants
Portfolio Pulse from Benzinga Newsdesk
Meta Materials Inc. (MMAT) has announced a registered direct offering of 75 million shares at $0.08 per share, with accompanying warrants to purchase an additional 75 million shares at $0.095 each. The offering is expected to raise $6 million before fees and expenses. The proceeds will be used for technology commercialization and sales efforts, as well as general corporate purposes. The closing is anticipated on December 6, 2023, with A.G.P./Alliance Global Partners as the placement agent.
December 04, 2023 | 1:24 pm
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NEGATIVE IMPACT
MMAT's direct offering at a significant discount may dilute current shareholders' equity and could lead to short-term downward pressure on the stock price.
The offering price of $0.08 per share is likely below the current market price, which typically leads to dilution of existing shares and can cause a negative reaction in the short term. The issuance of additional warrants could further dilute the stock. However, the intended use of proceeds for technology commercialization may be viewed positively in the longer term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100