This acquisition will support Meta's business model on a per square meter basis.įirst off, MMAT will work to double Nanotech's production capacity from a 7 million square meter plan to 15 million square meters by 2023. Of special interest is that Nanotech lacked an outstanding debt as of Q2 2021 with cash and its equivalent totaling C$8.9 million. This inclusion is important in helping MMAT's revenue growth strategy. Nanotech is already in revenue generation with signed development contracts. Here, MMAT's intellectual property rights will help secure the deal and promote business operations with the central banks. The company will sell the security features used in banknotes to central banks. Nanotech Security provides image security features applicable in high-level corporate structures and government facilities.Ĭommercialization of print works such as banknotes will help MMAT turn into a revenue-generating system. MMAT stands to benefit from an integration of color optics that are used in facial integrations. It will harness Nanotech's capacity to lower production costs in comparison to its energy-intensive semiconductor procedures. MMAT is operating a new product development facility with a capacity of 68,000 sq feet. Nanotech Security has an annual production capacity above 7 million sq meters of high-volume nano-imprint lithography (NIL). Additionally, this loss was greater than the growth of the development revenue that surged to $0.62 million. Semiconductor supply shortage and operational challenges led to Meta Materials reporting a net loss of $5.8 million (in Q2 2021) despite lowering costs to 47.2% YoY. MMAT will hope to shift from the semiconductor methods by this purchase. The movement of electrons is blocked, thereby helping to create insulators. In nanotechnology, semiconductors are transformed into pure conductors due to the shift in chemical properties. Their reliance on metals such as gold and silver nonconductors is not only expensive but also an inefficient mechanism of transmitting light. Complementary metal-oxide-semiconductors (CMOS) are used in constructing circuits used in light transmission. MMAT may shift its reliance on semiconductors, seeing the recent supply shortage that rocked the industry in the wake of the pandemic. With the world moving towards renewable energy, the integration of metamaterials and nanocomposites is bound to increase. This technology works in electricity/ thermal energy generation as well as acoustics. Meta Materials specializes in the application of advanced functional films to block, bend or enhance light. However, MMAT is expected to grow its production facility with this investment as well as expand its in-house capacity. It has a market cap of $67.06 million against MMAT with $1.46 billion. Investors may downplay the fact that Nanotech is a small-cap company. Meta Materials' acquisition of Nanotech Security ( OTCQX:NTSFF) is expected to close in October 2021, in a deal estimated to cost C$90.8 million ($71.7 million). Without delving into the short-squeeze drama, I will explain why I am upgrading my position on Meta Materials to neutral from sell given the new acquisition and active potential verticals. Unlike GameStop ( GME ), MMAT provides solutions into the digital world with growth prospects deep into the future. Short-sellers have been embroiled in a tug of war with retail investors pushing and pulling stocks against earnings. Meta Materials' (NASDAQ: NASDAQ: MMAT) recent status as a meme stock has wrongly served to undermine the company's innovative prowess in nano-lithography technology.
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