Insiders Are Buying Meta Materials (MMAT) Stock. Here’s Why.

Source: asharkyu /

Shares of Meta Materials (NASDAQ: MMAT) stock have soared higher by over 120% during the past month, driven by a memorandum of understanding (MOU) with DuPont Teijin Films and Mitsubishi Electric Europe and a $4.3 million worth of purchase orders.

Meta’s MOU with the two companies will seek to improve traditional lithium-ion batteries by reducing their dependence on copper. Meta will utilize its PLASMAfusion technology, which adds thin layers of copper on the sides of a polyester substrate. This can reduce the weight of the current collector by up to 80%, which increases energy density and battery life. DuPont will supply the polyester substrates, while Mitsubishi will contribute automation technology and interface to machine builders. The batteries created in this process can be used for electric vehicles (EVs) and other purposes.

Copper is a key component of building lithium-ion batteries. By 2035, experts predict that there may be a global shortfall of the metal by between 1.6 and 9.9 million tons. EVs also require 2.5x more copper than internal combustion engine (ICE) vehicles.

Insiders Are Taking an Interest in MMAT Stock

In late September, Meta received confidential purchase orders from a G10 central bank customer. The orders were for Meta’s nano-optic security business, which provides anti-counterfeiting features for currencies, government documents, and brand authentication.

The new purchase orders are a base award for an existing multi-year agreement. That agreement has a maximum value of $41.5 million over the span of five years. In addition, the value of the base award can increase if new purchase orders are received. Meta will utilize its KolourOptik technology to provide anti-counterfeiting measures as part of the agreement.

In the past month, 10% owner Gordon Welch has exchanged 3 million exchangeable shares into common stock. 1 million shares were exchanged at 65 cents, 1.5 million were exchanged at 64 cents, and the remaining 500,000 shares were exchanged at 97 cents. Following the exchanges, Welch now directly owns 2.44 million shares. He also indirectly owns 3.45 million shares through his spouse and 1.5 million shares through the Rotifer Foundation, which is wholly owned by Welch and his spouse.

CEO Georgios Palikaras has been buying as well. On Aug. 11, Palikaras purchased 42,000 shares at an average price of 96 cents per share. The purchase was not enacted via a prearranged 10b5-1 plan. After the transaction, he now directly owns a total of 1.15 million shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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