![]() Meta's spending should decline a bit once its oil and gas assets spinoff and once its Halifax production facility is completed. ![]() It also spent $9 million on purchases of property, plant and equipment during that period, which would include spending on its Halifax production facility (scheduled to open in November 2022). Meta used $29 million in cash on operating activities in the first half of 2022. This is after it completed its June 2022 equity offering, which resulted in $50 million in gross proceeds ($46 million in net proceeds). Cash Burn And Cash On HandĪt the end of Q2 2022, Meta reported having approximately $55 million in cash and short-term investments. If it doesn't regain compliance by February 21, 2023, it may be allowed a second 180 calendar day period to regain compliance and a reverse split becomes a significant possibility in that case. The recent interest in the company (which appears to have been caused by attention to its oil and gas spinoff) has boosted its share price above $1 and may allow it to regain compliance. Meta has until Febru(180 calendar days) to regain compliance by having the closing bid of its common stock meet or exceed $1.00 per share for at least ten consecutive business days. Meta received notice from Nasdaq in late August that it wasn't in compliance with the $1.00 minimum bid price requirement for continued listing. Assuming that the loan is repaid, Meta should have enough cash to get to late 2023 without requiring more funding, and perhaps a bit more time if it can further reduce its rate of cash burn. The loan repayment would give Meta some additional runway, as I believe that it is otherwise still on track to require another equity raise in 1H 2023. Meta will not have any ownership in Next Bridge Hydrocarbons once it spins out, although if Next Bridge later raises funds of its own, it should be able to pay Meta back the $20 million that it loaned Next Bridge. It appears to be benefiting from the attention being paid to its oil and gas spinoff (Next Bridge Hydrocarbons) as the placeholder shares ( OTCPK:MMTLP ) for that spinoff soar. Meta Materials ( NASDAQ: MMAT) recently saw its stock close above $1 again, potentially staving off listing compliance issues (from its stock being below $1).
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