On Friday, Meta Materials (MMAT) cratered after filing for liquidation bankruptcy and laying off its remaining employees. The stock dropped 73% to a record low of $0.56 before bouncing back to nearly $1 on heavy trading. Shares of the manufacturer of high-performance functional materials have plummeted 95% since last year, a sharp decline from the 52-week high of $26.95 per share.
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The company announced it is seeking a Chapter 7 trustee to liquidate assets and settle debts. After cutting 80% of its workforce in May, Meta Materials has now terminated all remaining staff, including CEO Uzi Sasson and top executives, with the board resigning as well.
The liquidation follows mass layoffs and a $1 million SEC fine for allegedly scheming to fraudulently boost stock prices. The SEC is still pursuing civil claims against former CEOs John Brda and George Palikaras for orchestrating a “short squeeze” to inflate the stock’s value before a major merger and misleading investors.
Is MMAT a Good Stock?
Given that MMAT has declared bankruptcy and is planning to liquidate all of its assets, it should not be considered a good stock to buy. Although there may be some institutional investors who specialize in profiting from special situations such as this, the average trader would likely be better suited to look elsewhere for opportunities, as bankruptcy proceedings are long and complicated. Only experts with extensive knowledge should approach such a stock.
