HALIFAX, NS - Meta (NASDAQ:META) Materials Inc. (NASDAQ:MMAT), a developer of advanced materials and nanotechnologies, today announced significant progress in its investigation into alleged illegal short selling of its stock. The inquiry, which began in June 2023, has led to the company's assertion that it has valid claims for market manipulation against various entities.
The investigation was prompted by suspicions of naked short selling, a practice where sellers sell shares that they have not borrowed, which is illegal. The company engaged Shareholder Intelligence Services, LLC to analyze trading patterns, and following these findings, enlisted the expertise of law firms Christian Attar and Warshaw Burstein to explore the validity of these claims.
After several months of rigorous investigation, the legal teams have concluded that Meta Materials possesses substantial claims. James "Wes" Christian of Christian Attar expressed confidence in the actionable nature of the case. Jack Harding, META Board Chairman, stated that the company is now prepared to present its findings to regulatory agencies and anticipates initiating legal action against the responsible financial service firms in the upcoming quarters.
Meta Materials, which specializes in creating products that enhance performance in various sectors including aerospace, defense, and consumer electronics, is poised to release further updates as more information becomes available.
The company's forward-looking statements indicate plans to address the costs and timing of these legal efforts, as well as a review of strategic alternatives. These statements are based on current management expectations and are subject to risks, uncertainties, and changes in circumstances.
This article is based on a press release statement from Meta Materials Inc. and provides an overview of the company's latest steps in addressing alleged market manipulation related to its stock.
InvestingPro Insights
As Meta Materials Inc. (NASDAQ:MMAT) advances its investigation into alleged illegal short selling, investors and observers may find it beneficial to consider the company's financial health and market performance.
According to real-time data from InvestingPro, Meta Materials has a market capitalization of $14.51 million, reflecting its size within the industry. Despite analysts anticipating sales growth for the current year, the company's price-to-earnings (P/E) ratio stands at -0.04, indicating that Meta Materials has not been profitable over the last twelve months, as of Q1 2024.
The revenue growth for Meta Materials has been notable, with a reported increase of 13.75% over the last twelve months and a staggering 131.7% growth in the most recent quarter of 2024. However, this growth has yet to translate into profitability, as the company's operating income margin is reported at -451.09%, suggesting significant operational challenges. Moreover, the stock has experienced high price volatility, with a 1-year price total return of -90.73%, which could be a point of concern for potential investors.
InvestingPro Tips for MMAT highlight that the company is quickly burning through cash and that short-term obligations exceed its liquid assets. These factors, along with the lack of profitability and a poor free cash flow yield, may influence investment decisions. For those interested in a deeper analysis of Meta Materials, InvestingPro offers additional insights, with a total of 13 InvestingPro Tips available at https://www.investing.com/pro/MMAT. To access these tips and more detailed metrics, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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