Why Meta Materials Stock Dived by Nearly 40% Today
Meta Materials' (NASDAQ: MMAT) stock was far from a popular title on the market on Friday. In fact, shares of the next-generation materials purveyor plummeted just shy of 40%, in sharp contrast to the frothy gain of the S&P 500 index. Investors bailed on the stock following the announcement of a new round of capital raising.
Meta Materials said that it has entered into a securities purchase agreement with "certain institutional investors" it did not name to sell just over 37 million shares of its common stock and an equal number of warrants. The price for the shares will be $1.35 per share, and the exercise price of the warrants is to be $1.75. The warrants become exercisable six months after issuance, and they expire five and a half years from issue.
Meta Materials' stock, which had closed Thursday at nearly $2 per share, unsurprisingly cratered the following day.
Source Fool.com