Complete exercise of the warrants will give Meta Materials another 5 quarters of runway at its current (Q1 2022) cash burn rate, and that may push the need for another equity offering out to around mid-2024.Īs well, after the new $5 million in spending on the oil and gas assets, Meta Materials is owed approximately $20 million by OilCo. Thus, I'd expect Meta Materials to do another equity offering in 1H 2023 unless its stock price is high enough during 1H 2023 to cause a significant portion of its warrants to be exercised. The remaining $42 million covers a bit over three quarters' worth of operations at its current rate of cash burn. The $50 million equity offering nets Meta Materials' $47 million in cash after fees while it is also putting another $5 million towards the oil and gas assets. Since companies try to avoid completely running out of money before raising additional funds, the timing of this offering makes sense.
This would have put Meta Materials on track to end Q2 2022 with approximately $13 million in cash on hand, pro forma for the Optodot acquisition, and excluding the proceeds from its equity offering. Meta Materials had $30 million in cash on hand at the end of Q1 2022 and had a cash burn rate of approximately $13 million per quarter excluding costs related to the oil and gas assets. I was accurate in my previous prediction that Meta Materials would raise money by issuing more shares in Q2 2022 or Q3 2022. These funds would be used to repay Meta Materials and maintain the leases and/or start a development program. It appears that Next Bridge Hydrocarbons will not be publicly traded initially, but I believe it will end up as a public company at some point to raise funds. Currently, it appears that one Series A Preferred share will be exchanged for one common share in Next Bridge Hydrocarbons.
The oil and gas spinoff (Next Bridge Hydrocarbons) has filed a registration statement for the registration of its common stock.
The full exercise of the warrants would likely push the need for additional funds into 2024. However, if it receives repayment of the funds it has lent to OilCo (Next Bridge Hydrocarbons), that would give it another one to two quarters of runway. If Meta Materials does not substantially reduce its cash burn from Q1 2022 levels, it may need to raise additional funds in 1H 2023. This was in line with my expectation that it would need to raise money in Q2 2022 or Q3 2022 due to its significant rate of cash burn. Its Glucowise device helps to take blood glucose samples and avoid hypoglycemic events.Meta Materials ( NASDAQ: MMAT) raised $50 million in gross proceeds via an equity offering in late June. It offers metaAIR laser glare protection eyewear and visors to aviation and military markets. Its holoOPTIX holographic optical components are fabricated on its platform. Its Nanoweb is a transparent conductor, which is made of a metal mesh that can be fabricated onto any glass or plastic surface. Its products include Nanoweb, holoOPTIX, metaAIR and Glucowise.
Its platform technology includes holography, lithography, wireless sensing, software and artificial intelligence (AI). Its technology platform enables brands to deliver products to their customers in consumer electronics, fifth generation (5G) communications, health and wellness, aerospace, automotive, and clean energy. The Company is engaged in designing, developing, and manufacturing functional materials. Meta Materials Inc., formerly Torchlight Energy Resources, Inc., is a developer of functional materials and nanocomposite products.