MMTLP Stock Alert: FINRA Issues Statement on MMTLP Trading Halt
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More than three months after the Financial Industry Regulatory Authority (FINRA) halted trading in MMTLP, the agency has finally issued a statement. The trading halt sent investors into an uproar as the agency halted trading in MMTLP shares ahead of a much-anticipated fallout.
Meta-materials (NASDAQ:MMAT) had planned to convert its preferred stock, traded over-the-counter under the symbol MMTLP, into Next Bridge Hydrocarbons, a subsidiary it was in the process of turning into its own company. Investors and company insiders have been demanding accounts and answers, but FINRA did not issue a statement on the matter until March 16.
FINRA Statements on MMTLP Shares
On December 21, more than two weeks after the date of the spin-off, InvestorPlace reported that investors who held MMTLP shares had still not received their Next Bridge shares.
In March 2023, that hasn’t changed, but the organization finally answered some of the questions posed by irate investors, releasing an “FAQ: MMTLP Corporate Action and Trading Halt.” In it, the company provided answers to 10 questions, including why it halted trading on MMTLP, whether any shares had been canceled and whether there is any public data available on MMTLP’s short selling activity.
Anyone who still owns MMTLP shares is probably more interested in a specific question, however: “What should investors do if they think they haven’t received their Next Bridge shares?” FINRA provided the following response:
“If you held a stable position in MMTLP on December 12, 2022, your account should reflect your position in Next Bridge. Your broker is required to retain possession or control of your shares under federal law. You can also request a transfer of shares from the name of the broker to your name; however, this transfer may take time and your broker or transfer agent may charge a fee for this service. If you believe that your shares are not correctly reflected in your account or if your broker has not been willing to transfer your shares in accordance with your instructions, you should contact your broker to understand the status of your Next Bridge shares.
The FAQ also notes that Next Bridge has not yet received a number from the Committee on Uniform Securities Identification Procedures (CUSIP). So different companies may use different symbols to identify it. He also points out that the MMTLP shares were canceled by the issuing company, Meta Materials, and not by FINRA.
The detailed list of questions also provides insight into why FINRA halted trading in MMTLP in the first place, citing concerns that following the split it would no longer be Depository Trust Company. (CPD) eligible. According to the statement:
“If MMTLP had continued to trade after December 8, investors buying MMTLP during that time may not have realized that these shares were about to be canceled by Meta Materials, that they may not receive MMTLP shares until they are cancelled, and that they would not be registered on December 12 as MMTLP holders eligible to receive shares of Next Bridge common stock as part of the distribution.
What happens after
As of this writing, the future of Next Bridge Hydrocarbons remains uncertain, as it does for investors in MMTLP shares. In the FAQ, FINRA pointed out that it acted within its rights by halting trading on MMTLP. His statements go in the direction InvestorPlaceduring the trading halt period. However, the MMTLP investment community responded negatively to FINRA’s statement. Many feel that their questions have still not been adequately answered.
A A Twitter user alleges that there are still “hundreds of millions of counterfeit $MMTLP shares being sold by financial institutions”. FINRA has not addressed this claim in the FAQ. This is probably not the end of the saga involving FINRA and MMTLP stocks.
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.