Meta (NASDAQ:META) Materials Inc. (NASDAQ:MMAT), a semiconductor company based in Nova Scotia, Canada, has filed for Chapter 7 bankruptcy, ceasing operations as of Friday. The company submitted its voluntary petition in the United States Bankruptcy Court for the District of Nevada, marking an end to its strategic alternatives exploration.
The filing, which occurred on August 7, 2024, will lead to the appointment of a Chapter 7 trustee by the bankruptcy court. This trustee will be responsible for administering the company's bankruptcy estate and liquidating its assets as per the Bankruptcy Code. An initial hearing for creditors will be scheduled, and notices will be sent to known creditors.
Concurrent with the bankruptcy filing, Meta Materials terminated all its employees and executive officers, including President and CEO Uzi Sasson and Chief Legal Officer Dan Eaton (NYSE:ETN). The company now operates without any executive officers or employees.
Additionally, the entire Board of Directors, including John R. Harding, Allison Christilaw, Steen Karsbo, Kenneth Hannah, Vyomesh Joshi, and Philippe Morali, have resigned effective with the bankruptcy filing. Their resignations were not due to disagreements over operations, policies, or practices but were a direct consequence of the bankruptcy filing. With their departure, the company's Board of Directors has been effectively dissolved.
This news reflects the company's final steps in addressing its financial challenges and follows the protocols outlined by the Securities and Exchange Commission for reporting such significant corporate changes. Investors and stakeholders are now awaiting further developments from the bankruptcy proceedings. The information provided is based on a press release statement.
In other recent news, Meta Materials Inc. reported a significant cyber incident, which led to substantial IT system outages. The company managed to restore its systems, although they continue to experience stress and delays. In a related event, Meta Materials' subsidiary, Metamaterial Technologies Canada Inc., filed for bankruptcy.
Meta Materials also completed the sale of its authentication business to Authentix, Inc. and Authentix Canada Solutions, Inc. for a total of $10 million. This transaction was part of the company's strategic efforts to improve liquidity amid financial difficulties.
The semiconductor company has been actively investigating allegations of illegal short selling of its stock, leading to substantial claims for market manipulation against various entities. Legal action against the responsible financial service firms is expected in the upcoming quarters.
Furthermore, Meta Materials announced a significant workforce reduction plan, intending to cut approximately 80% of its employees in the coming weeks. This decision is part of a broader effort to address the company's financial situation, which may include selling assets or seeking further financing. These are the recent developments for Meta Materials Inc.
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