Meta Materials Announces Proposed SEC Settlement; Says If Approved By The Commissioners, It Would Remove Uncertainty Related To The Investigation And Allow The Company To Move Forward In Achieving Its Business Objectives
Portfolio Pulse from Benzinga Newsdesk
Meta Materials Inc. (MMAT) has announced a proposed settlement with the SEC regarding an investigation into its merger with Torchlight Energy Resources. The settlement, which includes a $1 million penalty paid over one year, is pending approval by SEC Commissioners. The company believes this will remove uncertainty and allow it to focus on business objectives.
January 11, 2024 | 9:03 pm
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MMAT has proposed a settlement with the SEC, which could resolve legal uncertainties from a past merger investigation. If approved, a $1 million penalty will be paid, potentially allowing the company to focus on its business goals.
The proposed settlement is likely to have a positive short-term impact on MMAT's stock price as it would eliminate the overhang of the SEC investigation, which has been a source of uncertainty for investors. The payment of the penalty, while a cash outflow, is structured in installments, which lessens the immediate financial burden. The market typically responds well to the resolution of regulatory issues, as it allows the company to redirect its focus and resources on its core business without the distraction of ongoing legal matters.
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