Need capital? Meta Materials (NASDAQ:MMAT) certainly does. On Feb. 19, the company entered into a securities purchase agreement with a single institutional investor. The agreement details a $3.4 million registered direct offering for 600,000 shares of common stock, pre-funded warrants to purchase up to 250,000 shares of common stock, and warrants to purchase up to 850,000 shares of common stock. Each share of common stock and each pre-funded warrant was offered and sold together with a warrant.
The pre-funded warrants expire once they are completely exercised, while the warrants will expire five years after the date of their issuance.
“Each Pre-Funded Warrant and Warrant is exercisable at any time on or after the date of issuance to purchase one
share of Common Stock at a price of either $0.001 per share, in the case of the Pre-Funded Warrants, or $3.91 per share, in the case of the Warrants,” said Meta.
META Stock: Meta Announces $3.4 Million Direct Offering
The offering was completed on Feb. 21 and resulted in net proceeds of $3 million, which includes deductions for offering expenses. Meta will use the proceeds to boost its technology commercialization efforts, such as its bank note and brand authentication services, and for other general corporate purposes. The company also added that the proceeds may be used toward acquiring or investing in complementary businesses or technologies.
Furthermore, Meta announced that it would amend certain existing warrants to purchase up to 324,075 shares of MMAT stock. These warrants had an exercise price of $9.50 per share and an expiration date for June of 2029. As of June 6, 2024, the warrants will “have a reduced exercise price equal to the minimum price for Nasdaq purposes on such date.”
Pursuant to the warrant amendment, Meta agreed to propose an increase of its authorized common stock to 250 million at its next special or annual meeting of stockholders. The institutional investor of the $3.4 million offering agreed to use “commercially reasonable efforts” to vote in favor of the proposal with the shares under its control.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
