Massive Concern in MMTLP Now Surges According to New Letter

Massive concern in MMTLP now surges according to a new letter sent out to the SEC and FINRA with over 70 co-signatures from Congress.

“Over 70 co-signers on my letter this morning to FINRA and the SEC concerning #MMTLP – Meta Materials Series A preferred shares,” reported Rep. Ralph Norman on X last Friday.

“We write to request that the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) review events surrounding Meta Materials Series A preferred shares (MMTLP),” the letter read.

“As you know, MMTLP was created during a merger between Meta Materials (MMAT) and Torchlight Energy Resources (TRCH) to provide preferred stock dividends to TRCH shareholders.

MMTLP shares began trading on the OTC market in 2021. In the summer of 2022, the SEC received and subsequently approved a Form S-1 and amendments to spin-off a portion of the company, Meta Materials, into a new company, Next Bridge Hydrocarbons (NBH).

On December 9, 2022, FINRA issued a U3 halt on trading in the company’s stock, preventing shareholders from making further trades.

Since the halt, constituent investors have contacted Members of Congress regarding the spin-off transaction and the subsequent halt on trading. Specifically, we have received more than 40,000 letters from concerned investors,” the letter stated.

Many of our constituents have concerns regarding the circumstances surrounding the U3 halt and level of short selling in MMTLP.

As you know, the securities industry is regulated by a disclosure-based regime, and transparency is paramount to FINRA’s and the SEC’s goals of protecting investors and ensuring market integrity.

We believe it is appropriate that FINRA and the SEC review these market events and determine what, if any, wrongdoing may have occurred in order to dispel misinformation and properly safeguard investors.”

Now Congress is requesting for the following questions to be answered by regulators:

NOTE: Several FrankNez reports on the MMTLP scandal have now been acknowledged by the Congressional Research Service.

Congress Requests Answers From Regulators Regarding MMTLP

Market News Today - Massive Concern in MMTLP Now Surges According to New Letter.
Market News Today – Massive Concern in MMTLP Now Surges According to New Letter.

Congress members are requesting the following questions to be answered from regulators by no later than January 31, 2024:

  1. Provide a timeline of trading of MMTLP on the OTC markets; the actions taken by the SEC, self-regulatory organizations, the issuers, the transfer agent, and any other relevant parties during the time MMTLP was traded; and the transaction that produced Next Bridge Hydrocarbon shares.
  2. The Former CEO of Torchlight Energy Resources stated that “MMTLP was never designed to trade.” Please provide a detailed explanation, including the relevant statutory authority and procedures, that allowed for MMTLP shares to trade on the OTC market.
  3. Provide the relevant statutory authority, jurisdiction, and adherence to established industry standards regarding the U3 trading halt of MMTLP issued on December 9, 2022.
  4. Provide the exact date and circumstances surrounding FINRA’s determination to implement the U3 halt, including all unredacted communications between FINRA, SEC, governmental agencies, any outside organizations, FINRA members and non-FINRA members, and any other individuals. Also include all information surrounding the SEC or FINRA’s knowledge of the share price in any public or non-public exchange before issuance of the U3 halt.
  5. Provide the first date and time that FINRA or its agents advised any market participant in any manner that MMTLP would no longer trade on December 9, 2022. Include any relevant documents or communication.
  6. Did FINRA issue a Blue Sheet request for MMTLP during the period of October 2021 through December 2022? Why or why not?
  7. How many questions, complaints, and/or inquiries have you received regarding MMTLP?
  8. Provide the statutory or legal justification used by the SEC and FINRA to ignore public requests and congressional inquiries regarding MMTLP.
  9. Provide the delivery of a certified audited and consolidated count of shares that were held by all U.S. and foreign financial institutions, together with their clearing firm counterbrokers including trades not reported in the consolidated audit trail (CAT), related to MMTLP on the date of December 12, 2022. Please include all shares/holdings of long and short positions, as well as IOUs held by each participating broker and market participant as record owner, beneficial owner, or in any other capacity (each reported separately) including but not limited to: all shares registered at AST, all shares held in U.S. broker dealers, all shares held offshore that were traded and never settled through the appropriate clearing channels, and the ability to provide the location associated with each short position identified above.
  10. Have all MMTLP shareholders received their NBH shares?
  11. In your view, did MMTLP investors knowingly enter into a risk-taking transaction with full understanding of material information and without misleading guidance from social media or elsewhere? For example, the SEC has charged social media influencers with manipulation schemes in the past.
  12. In your view, are there better ways to provide transparency and clarity regarding risk disclosures that could enhance market integrity and reduce market disruptions? For example, retail investors and experts (e.g., OTC Markets Group’s vice president) were reportedly confused about MMTLP’s final trading date. As such, investors may not have been able to optimize their investment decisions.
  13. Do you have evidence to suggest the existence of fraud and manipulation related to MMTLP transactions, such as illegal forms of naked shorts and counterfeit shares, that could distort the market?
  14. Have you seen any indications of insider trading and/or pump and dump related to MMTLP transactions?
  15. Are your organizations willing to work with NBH to determine a resolution for existing shareholders? For example, some investors have expressed concern that, even though their brokerage account statements include shares of NBH in their account, these shares may not have actually been delivered to their broker-dealers.
  16. Identify any regulatory or legislative gaps that should be addressed to ensure the SEC, FINRA, and other regulated entities may better protect investors and strengthen market integrity.

This is a developing story – for more market news and updates like this, follow me on X: @FNez_Blogger.

Also Read: Gary Gensler is Now Dodging MMTLP Inquires From Congress

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Market News Today - Massive Concern in MMTLP Now Surges According to New Letter.
Market News Today – Massive Concern in MMTLP Now Surges According to New Letter.

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