Meta Materials (NASDAQ:MMAT) announced today that it has priced an underwritten public offering of 83,333,334 shares of its common stock and warrants to purchase up to an aggregate of 83,333,334 shares of common stock at a combined public offering price of $0.30 per share and accompanying warrant.
META has granted the underwriters a 30-day overallotment option to purchase up to an additional 12,500,000 shares of its common stock and/or warrants to purchase up to an additional 12,500,000 shares of common stock at the public offering price.
Each warrant is exercisable immediately at an exercise price of $0.375 per share and will expire five years following the date of issuance.
All of the securities are to be sold by META.
The gross proceeds of the offering are expected to be approximately $25 million before deducting the underwriting discount and estimated offering expenses payable by META.
The offering is expected to close on or about April 18, 2023 subject to satisfaction of customary closing conditions, per the company’s press release.
This is great news for Meta Materials fundamentally, though the dilution may not sit well with many shareholders.
Shares of MMAT stock fell more than -39% on Friday despite the company announcing its plan to raise capital.
Here’s how Meta says it plans to use the cash.
Latest Meta Materials Stock News
“META intends to use the net proceeds from the offering for working capital and general corporate purposes, which include, but are not limited to: on-going development of our existing and future products, (such as our advanced materials NPORE® and NCORE™ for Li-ion battery applications, electro-optical devices, the expansion of our manufacturing facilities and capital equipment purchases), as well as general and administrative expenses.”
The company filed a shelf registration statement on Form S-3 relating to the shares of common stock offered in the public offering described above with the Securities and Exchange Commission (the “SEC”) on November 10, 2022, which was declared effective by the SEC on November 18, 2022.
Meta filed a preliminary prospectus supplement and accompanying prospectus relating to the offering with the SEC on April 13, 2023.
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