HALIFAX, NS / ACCESSWIRE / January 14, 2022 / Meta Materials Inc. (the "Company" or "META®") (NASDAQ:MMAT)(FSE:MMAT) a developer of high-performance functional materials and nanocomposites, today provided an update on the special Series A Preferred Stock dividend in relationship to the oil and gas assets and the planned spinout of these assets to the Company's Series A preferred stockholders.
On December 3, 2021, META provided an update on the Company's oil and gas assets and operations. We indicated that four wells must be drilled in the Orogrande project in 2021 to enable the Company to hold the lease for sale or spinout. As of December 13, 2021, all required drilling operations on the four well sites were successfully completed. The Company believes that with the completion of the work on these four wells, META is again in compliance with all aspects of its lease obligations, and the CDC (Continuous Drilling Clause) with University Lands on the Orogrande project has been satisfied.
With the completion of this work, the Company is now moving forward to the next steps in the spinout process for these assets. This work includes, but is not limited to, formal transfer of the assets to OilCo Holdings, Inc. (the "OilCo"), a newly formed wholly owned subsidiary of META, ensuring that the OilCo capital structure supports a spinout and, making any necessary filings with the SEC. META has finalized permanent arrangements with a completely new management team for OilCo who bring significant experience in oil and gas exploration as well as specific experience in the Orogrande region. This team is continuing to consult for OilCo regarding operations and structure of OilCo moving forward.
"The new management team of OilCo has been instrumental in ensuring that a very aggressive drilling schedule during the 4th quarter of 2021 was met. I am personally very pleased with the advice, counsel and operating guidance this team has given META, and I hope to continue working with this new team once the spinout is finalized," said Greg McCabe, former Chairman of the Board of Torchlight Energy Resources, Inc., the guarantor of certain loans from META to OilCo to fund the drilling operations, and a holder of a plurality of the shares of the Series A Preferred Stock.
META currently plans to complete the spinout of OilCo as quickly as it can, with a target of March 2022, subject to compliance with all legal requirements and process approvals by all involved parties. The Company's objective has been and remains to ensure that the intrinsic value of these assets is maintained for the benefit of the Series A preferred stockholders of META and that the assets are transferred as rapidly as possible to the Series A preferred stockholders.
About Meta Materials Inc.
META® delivers previously unachievable performance, across a range of applications, by inventing, designing, developing, and manufacturing sustainable, highly functional materials. Our extensive technology platform enables leading global brands to deliver breakthrough products to their customers in consumer electronics, 5G communications, health and wellness, aerospace, automotive, and clean energy. Our nano-optic technology provides anti-counterfeiting security features for government documents and currencies and authentication for brands. Our achievements have been widely recognized, including being named a Lux Research Innovator of the Year in 2021. Learn more at www.metamaterial.com.
This press release includes forward-looking information or statements within the meaning of Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, regarding the Company, which may include, but are not limited to, statements with respect to the timing of the currently planned spin-out. Often but not always, forward-looking information can be identified by the use of words such as "pursuing", "potential", "predicts", "projects", "seeks", "plans", "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "should", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company's plans regarding the spin-out and management's ability to manage and to operate the Oil and Gas assets and operations. More details about these and other risks that may impact the Company's oil and gas business are described under the heading "Forward-Looking Information" and under the heading "Risk Factors" in the Company's Form 10-K filed with the SEC on March 18, 2021, and in subsequent filings made by Meta Materials with the SEC, which are available on SEC's website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by law.
Vice President, Corporate Development and Communications
Meta Materials Inc.
Senior Vice President
SOURCE: Meta Materials Inc.