Meta Materials Now Files An Unexpected Bankruptcy

August 1, 2024

Meta Materials now files an unexpected bankruptcy following a slew of technical difficulties with its website and communications systems.

In an SEC filing, the company reports that it has commenced bankruptcy proceedings by filing an assignment in bankruptcy under section 49 of the Bankruptcy and Insolvency Act (Canada) in the District Court of Ontario.

“Grant Thornton Limited was appointed as trustee in the bankruptcy for the benefit of the creditors of MTCI.

The trustee will wind down the business of MTCI and make distributions, if any, to its creditors in accordance with the applicable provisions of the Bankruptcy and Insolvency Act (Canada),” the filing read.

On July 25, Meta Materials’ website, alongside its email system and other communications were taken offline.

The website was then re-activated and email systems restored on July 29, 2024.

The company stated that it proceed with its bankruptcy filing on July 26, the time in between when all of its systems were temporarily offline.

Investors are now questioning the integrity of the company after being left in the dark in regards to the MMTLP event.

“Everyone weaseling their way around taking accountability for stealing our money.

I wouldn’t be surprised If NBH did the same thing. Just slowly pulling away with loop holes,” says one user (@U3HaltCorrupt) on X.

“So…what do we do? Never been in this situation before having shares in a company who files for bankruptcy,” says another investor.

Last year, the SEC provided John Brda and former Meta Materials CEO George Palikaras with “Wells Notices” relating to a previously disclosed SEC investigation into, among other things, the merger involving Torchlight Energy Resources, Inc. and Metamaterial Inc.

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The SEC now charges a CEO for a whopping $170 million fraud scheme that tricked its investors about the company’s actual growth.

In its statement, the Securities and Exchange Commission (SEC) has charged Abraham Shafi, the founder and former CEO of the private social media startup “IRL” (Get Together Inc.), with defrauding investors.

According to the SEC’s complaint, Shafi, who resides in Pepeekeo, Hawaii, raised approximately $170 million from investors by misrepresenting IRL as a rapidly growing social media platform that organically attracted the majority of its claimed 12 million users.

In reality, the SEC alleges that IRL spent millions of dollars on advertisements that offered incentives to download the app, and Shafi concealed these marketing expenses from investors.

The SEC further alleges that Shafi failed to disclose to investors that he and his fiancée, Barbara Woortmann, used IRL’s business credit cards to pay for hundreds of thousands of dollars in personal expenses, including clothing, home furnishings, and travel.

By making false and misleading statements about the company’s growth and concealing the extensive personal use of company funds, the SEC claims that Shafi defrauded investors who provided the $170 million in funding to IRL.

“As we alleged, Shafi took advantage of investors’ appetite for investments in the pre-IPO technology space and fraudulently raised approximately $170 million by lying about IRL’s business practices,” said Monique C. Winkler, Director of the SEC’s San Francisco Regional Office.

“Investors in this space should continue to be vigilant.”

The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Shafi with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, civil money penalties, disgorgement with prejudgment interest, and an officer-and-director bar against Shafi.

The complaint also names Woortmann as a relief defendant and seeks disgorgement with prejudgment interest for the personal expenses she charged to an IRL credit card that were ultimately paid with investor money, per the report.

Also Read: Short Seller Who Shorted GameStop Now Surrenders to Securities Fraud

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