Nova Scotian nanotechnology company Meta Materials Inc. announces significant increase in revenue just as it signs agreement to help reduce the cost and weight of batteries for electric vehicles, extend their range and improve their safety.
Nova Scotia-based nanotech company Meta Materials Inc. (MMAT:NASDAQ; MMAX:CSE; MMAT:FSE) reported a significant revenue boost in the third quarter just as it signed an agreement to help reduce the cost and battery weight for electric batteries. electric vehicles (EV), extend their autonomy and improve their safety.
Cormark Securities analyst MacMurray Whale maintained a buy rating on the stock.
Total revenue increased year-over-year in the third quarter by 329% to US$2.5 million and by 388% to US$8.8 million in the first nine months compared to the same period in 2021.
Cormark Securities analyst MacMurray Whale wrote in an updated note on Friday that the increase in revenue was less than the US$3.4 million that Cormark had predicted. However, he maintained a buy rating on the stock, lowering the target to US$3.50 from US$5.
“We expected indications of faster volume increases than we had previously modeled, but recognize the difficulty in modeling given the rapid changes in EV space,” Whale wrote. “With the cash balance having decreased to ($31 million), current quarterly spending gives a shorter track than we expected at year-end.”
The company’s third-quarter net loss increased to US$24.5 million, or 7 cents per share, on 362.2 million weighted average shares, from US$11.4 million, or 4 cents per share. share, out of 280 million weighted average shares in the third quarter of 2021.
But operating expenses also doubled year-on-year to US$23.9 million following several large acquisitions, the analyst said.
“MMAT has many early-stage projects in a number of different verticals, most of which have not entered commercial-scale production,” Whale said.
Most of the revenue boost was $1.9 million from an agreement with a confidential G10 central bank client to develop anti-counterfeiting measures for currencies, Whale said.
This is part of an agreement with the bank for up to $41.5 million of development work over five years.
Metamaterials were first developed in the 1960s, but only took off in the 2000s when design and manufacturing capabilities caught up with technology. The company uses them to develop nanotechnology products such as self-defrosting and defogging car and truck headlights and windows, transparent antennas, augmented reality glasses that look like ordinary glasses, and special glasses that protect the eyes. pilots of the laser strikes.
META applies its futuristic technology to the communications, health and wellness, aerospace, automotive and clean energy sectors.
The company has 472 active patent documents, of which 292 patents have been granted for all of its technologies.
Big advancements in EV battery technology
Earlier this month, META announced that it had entered into a memorandum of understanding with DuPont Teijin Films and Mitsubishi Electric Europe to use Meta’s PLASMAfusion to scale a high-volume manufacturing system for current collectors in foil coated copper.
The process reduces the amount of red metal needed for electric vehicle batteries at a time when an upcoming copper shortage threatens the transition to green energy, the company said.
“There has to be a better way,” said META President, CEO and Founder George Palikaras. “What we’re proposing here, and that’s part of the disruption, is that we’ve not only invented a way to make current collectors more efficient by reducing the copper content, but we’ve made a real machine that we let’s call it PLASMAfusion.”
The agreement is focused on the development of battery materials, such as coated copper current collectors and solid-state battery electrodes, META said. It will start with a pilot program and evolve into an industrial-scale mass production line.
META will provide PLASMAfusion technology, DuPont Teijin Films will develop and supply polyester substrates, and Mitsubishi Electric Europe will provide automation technology, expertise and interface with machine builders.
“What’s really important here (is) PLASMAfusion is very versatile,” Palikaras said. “This is a technology platform with which we hope to increase productivity not only for batteries, but also for nanowebs and other applications.”
Security technology is ready to launch
The price of the G10 bank is part of an ongoing contract; META could not identify the bank for security reasons. But the company said it was to work on the currency.
In addition to the just-announced US$4.3 million, the bank has already granted the company a total of US$9.2 million.
The company said it is currently testing its KolourOptik® Stripe anti-counterfeiting technology and plans to launch it as early as Q1 2023.
A blog post on META’s site describes some of the security measures available through the technology, including images with omnidirectional motion, 3D depth, or holographic security patterns.
These effects are “the exact visual triggers that millions of years of evolution have optimized human visual receptors to detect and respond to,” the company said. “Our toolkit of innovative nano-optics-based visual effects to combat counterfeiting is available for brands and designers looking to build . . . extremely secure custom solutions that (work) well with their brand. ”
META also offers the technology for use on documents, smart packaging and gift cards. Technology can also help prevent deaths from counterfeit medicines.
Ownership, coverage and sharing structure
META had cash and cash equivalents of US$32.2 million in the third quarter and a burn rate of approximately US$6.5 million per month.
Major shareholders include Thomas Gordon Welch, with 6.64% or 24 million shares; Anne Barber Lambert, with 6.39% or 23.14 million shares; Lamda Guard Technologies Ltd., with 6.35% or 22.98 million shares; and State Street Global Advisors, with 3.54% or 12.82 million shares, according to Reuters. About 14% of META is held by institutions.
The stock is covered by numerous analysts, including Christopher J. Sakai of SingularResearch, Gerry Sweeney of ROTH Capital Partners, as well as Cormark Securities’ MacMurray Whale and newsletter editor Clive Maund of Clivemaund.com. Click “See more live data” in the data area above to learn more.
The company has a market capitalization of $473.6 million with 361.9 million shares outstanding, 267 million of which are free-floating. It is trading in a 52-week range of US$5.42 and US$0.63.
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