The stock of Meta Materials (NASDAQ:MMAT) has completed the distribution of Next Bridge Hydrocarbons common stock. Shareholders with settled Meta Materials Preferred Shares (OTCMKTS:MMTLP) as of December 12 were eligible for the 1-to-1 distribution.
The events leading up to this distribution were and continue to be highly contentious. Previously, the company stated that MMTLP shares would be “cancelled” on December 13.
However, on December 9, the Financial Industry Regulatory Authority (FINRA) decided to halt MMTLP, surprising and infuriating shareholders everywhere. The regulatory agency cited halt code U3, which is reserved for “extraordinary events” with a “material effect” on the share price.
Meanwhile, MMTLP’s status is unknown, as the ticker does not appear on FINRA’s daily list of deletions for the period December 9 to December 31.
Some shareholders had speculated that the FINRA halt was implemented to protect short sellers. They claim that because MMTLP was set to be cancelled, short sellers would be forced to cover their positions by purchasing MMTLP.
According to The Herald, there is an ongoing petition with over 11,000 signatures to seek justice for shareholders. The petition, among other things, demands an end to dark pool trading and payment for order flow (PFOF). MMAT and MMTLP shareholders have also filed a legal complaint against FINRA. The shareholder, according to the complaint, is a member of The Florida Bar.
The shareholder claims that FINRA broke the Sherman Act and the Securities Exchange Act. Furthermore, the shareholder requests a two-day extension of MMTLP’s cancellation and a postponement of the distribution “until accounting has been verified and stock liquidity has been restored.”
Next Bridge reported $30,214 in revenue and a $4.76 million net loss for the nine months ended September 30. The sale of oil and gas generates revenue.
Furthermore, the company has stated that it will require capital in the “immediate future.”