![]() When an investor exercises their warrant, they receive newly issued stock, rather than already-outstanding stock. According to Investopedia, unlike options, “…warrants are dilutive. Primarily, the concerns of the deal center on dilution. Unfortunately, the enterprise doesn’t appear particularly viable. Nevertheless, MMAT stock must make financial sense for stakeholders. ![]() These sectors include aerospace, automotive, consumer electronics, 5G, and more. Meta specializes in holography and lithography and which can facilitate greater efficiencies for myriad industries. Not liking the terms of the deal, stakeholders quickly dumped MMAT stock.ĭilution Fears Drive Volatility for MMAT StockĪbsent any other market-related context, Meta Materials represents a fundamentally critical and relevant business. ![]() The offering is expected to close on Tuesday and net about $25 million in proceeds, before underwriting discount and estimated expenses.”Īlso, underwriters will receive a 30-day overallotment option to purchase up to an additional 12.5 million shares at a discount. In addition, “ach warrant is exercisable at a price of 37.5 cents per share and will expire in five years. With a significant number of warrants involved in the deal, the dilutive potential scared off investors.Īccording to MarketWatch, the Nova Scotia-based advanced materials firm stated before the opening bell Friday that it will be “…offering 83.3 million shares of common stock and warrants to buy up to 83.3 million more shares at a combined public offering price of 30 cents per share and accompanying warrant.” After management announced the pricing of its previously proposed underwritten public offering, MMAT stock fell 42% before paring losses slightly to 40% down. Amid a corrective backdrop in the equities market, materials and nanocomposite manufacturer Meta Materials (NASDAQ: MMAT) increased pessimism exponentially. ![]()
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