MMAT Stock Alert: Meta Materials Issues ‘Business Continuity’ Warning
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Meta-materials (NASDAQ:MMAT) is still on a losing streak. The controversial functional materials company has proven that it cannot generate significant momentum, even when it has good news to report. Today brought more bad news as the company released its financial results for the fourth quarter of 2022 and the full year. Following the recent Next Bridge Hydrocarbons spin-off that shareholders said left them without shares, many investors were curious to see what Meta Materials would earn. Although it posted mixed earnings, MMAT stock is likely lower today due to the “going concern” the company noted in its report.
At a time when stocks are in a race to the bottom, these types of red flags are the last thing investors want to see.
What’s Happening With MMAT Stocks
It’s not the worst trading day for MMAT stocks, but it certainly isn’t the best. MMAT stock hit a new all-time low of $0.46 today. As of this writing, it is down almost 11% for the day and shows no signs of recovering. Not that there are many reasons for him to turn around. Words like “going concern” don’t tend to reassure investors that a company is on the right track. When we factor in its recent shortfall, it’s hard to see any growth in the company’s future.
What exactly is the active company driving down MMAT stock today? It appeared in the report as part of the section on identifying risk factors. According to a statement issued by the company:
“META has identified factors that raise substantial doubts about the Company’s ability to continue as a going concern and comply with NASDAQ’s continued listing requirements. META anticipates that it must implement cost reduction measures under its control and immediately raise additional capital to expand the commercialization of its products, finance its operations, continue its research and development activities and ensure that it can continue to operate as a going concern.
The company notes that it “may pursue” other areas of financing, such as the sale or lease of company properties, the joint venture of projects, or debt or equity financing. However, this formulation is hardly reassuring, especially since it reads like speculation. Until Meta Materials shows it can successfully raise capital and demonstrate sustainable growth, MMAT stock will remain a volatile buy and concerns will persist.
At the date of publication, Samuel O’Brient 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.