metamaterials (NASDAQ:MMAT) stock is in the spotlight today, as the company recently announced that its board of directors has approved a 100% distribution of common stock to shareholders of wholly owned subsidiary Next Bridge Hydrocarbons Meta Materials preferred stock (OTCMKTS:MMTLP).
Upon completion of the Demerger, Next Bridge will be an “independent public reporting company” while shares of the company will not be publicly traded or available for electronic transmission through a clearing system such as the Depository Trust Company () booking system.
Next Bridge is an energy company focused on the exploration, acquisition and development of oil and natural gas properties in the United States. As of December 31, the Company had interests in two oil and gas projects in Texas and one project in Oklahoma. It also has two smaller well interests in Oklahoma and smaller interests on the eastern rim of the Midland Basin.
Dear MMAT stock fans, mark your calendars for December 12th
The demerger date for shareholders of MMTLP stock will be December 12 at 4:00 p.m. ET, subject to final approval of FINRA and Blue Sky legislation. Shareholders will receive one Next Bridge share for each MMTLP share they own. After the Record Date, Next Bridge shares will be issued on December 14 after market close. Once distributed, MMTLP shares will be “automatically cancelled”, losing all rights and no longer traded on the over-the-counter (OTC) market.
MMTLP shareholders who sell their stake on or before the record date will not be entitled to the distribution. Shareholders who sell their interest after the record date but before the distribution date must remit their distribution to the purchaser of their interest.
As an oil and natural gas company, Next Bridge will be exposed to macroeconomic risks in the energy industry. These include domestic production, imports, demand and federal regulations. Next Bridge also mentioned that it would require “significant capital” after the spin-off. The company could achieve this through arrangements such as equity or debt financing and joint ventures of projects.
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At the time of publication, Eddie Pan held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are governed by InvestorPlace.com Posting Policies.