On Friday, FINRA shocked retail investors everywhere as it halted trading of MMTLP stock ahead of the new spinoff.
This news has left investors with some pressing questions.
Meta Materials is distributing shares of subsidiary Next Bridge Hydrocarbons to its shareholders through what’s known as a ‘spinoff’.
The date of record will fall on Dec. 12, followed by the distribution date on Dec. 14.
However, shares of MMTLP will be automatically canceled, lose all of their rights, and no longer be tradable on the over-the-counter (OTC) market following the distribution.
In addition, Next Bridge will be an independent public reporting company that is not eligible for electronic transfer through any clearing corporations.
Next Bridge operates as an energy company with a key focus on an oil and natural gas project in the Orogrande Basin in West Texas.
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Why did FINRA halt MMTLP Stock?
FINRA confirmed the trading halt this morning on its over-the-counter equities list.
It has been given the halt code U3, indicating that it pre-dates a significant event.
In this case, it is the Next Bridge Hydrocarbons spinoff, an event that promises to generate high trading volume upon its completion.
Retail investors have been voicing their concerns with the halt with many accusing FINRA of market manipulation.
Many traders have even called for a lawsuit against FINRA and have resorted to tagging market influencers such as Elon Musk and AMC Entertainment CEO Adam Aron.
Though it is fair to point out that Adam Aron has not raised concerns about the market manipulation in his own company.
And unfortunately, FINRA’s actions all seem to be ‘legal’ per the FINRA Rulebook.
InvestorPlace says, “FINRA clearly believes it is necessary to halt trading in order to protect the interests of current investors. Retail traders may not be happy with the result, but it seems that FINRA is well within its rights to cease trading ahead of an important market event”.
But I’m curious to know what you think.
Leave your thoughts below.
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