Insider Thomas Welch Just Sold Meta Materials (MMAT) Stock

Shares of Meta-materials (NASDAQ:MMAT) have come under particular scrutiny in recent days due to the suspension of trading in Meta Materials Preferred Shares (MMTLP). Last week, MMTLP shareholders received a surprise after the Financial Industry Regulatory Authority (FINRA) initiated the suspension, which was originally scheduled to be enacted on December 13. FINRA cited the U3 shutdown code, which is used for an “extraordinary event” that has the potential to cause a “major disruption”.

Shareholders were quick to turn to social media to denounce the unfairness of the situation. Some shareholders have speculated that FINRA suspended trading due to short hedge fund positions. They argued that these short sellers would be required to cover their positions before the suspension date, which could drive up the price of MMTLP.

A petition has even been created on Change.org to address concerns. The petition calls for an end to dark pool trading and payment for order flow (PFOF), among other demands. As of this writing, the petition has over 8,600 signatures.

With that in mind, let’s get into the details of the MMAT stock insider sale.

MMAT Stock: Insider Thomas Welch Sells 75,000 Shares

On December 7, 10% owner Thomas Welch sold 75,000 shares at an average price of $2.23 per share. The shares were sold indirectly through the Rotifer Foundation, to which Welch is affiliated. After the sale, the foundation still owns 1.43 million shares.

According to a Form 4 received by the Securities and Exchange Commission (SEC) on Oct. 27, Welch directly owns 22.16 million shares. His position consists of 2.45 million MMAT shares and 19.71 million exchangeable shares of Metamaterial Exchangeco. Each share of Metamaterial Exchangeco can be exchanged for one share of MMAT. Additionally, Welch’s stake solidifies him as MMAT’s largest shareholder, beating out institutions like black rock (NYSE:noir) and Avant-garde.

Welch’s sale on Dec. 7 wasn’t too big considering he still owns more than 23 million shares after the sale. Meanwhile, other company insiders seem optimistic. Over the past year, insiders have purchased 349,195 shares and sold 132,808 shares, including Welch’s. This represents total net activity of 216,387 shares purchased.

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At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.