Meta Materials (NASDAQ: MMAT) witnessed a significant uptick in trading activity on January 16th, 2024, resulting in a notable 20% increase in its stock value by market close. Intrigued by this surge, we explored various sources, including press releases, SEC filings, and social media, to identify the catalyst behind this sudden gain.

Unexpectedly our research revealed no recent material releases. Instead, the surge seems tied to an announcement from a few days ago that didn’t grab much attention at first. As time passed, it started generating more buzz but there’s still a lot more to dig into and a number of ideas to consider for today’s rally.

If you haven’t caught up on our previous analyses of MMAT, you can find the overview here. In this report, we aim to explore the cause-and-effect dynamics of recent events, offering insights that might illuminate expectations for Meta Materials in the near future.

Background:

If you’re new to MMAT or haven’t been a long-time follower, let’s kick things off with a quick intro to the company.

Meta Materials stands at the forefront of advanced materials and nanotechnology. Their focus is on pioneering novel products and technologies utilizing sustainable and innovative scientific approaches. The interesting part is their advanced materials have the transformative power to enhance a variety of common products, infusing them with heightened intelligence and sustainability.

Leveraging its technology platforms, they’re capable of empowering global brands in creating cutting-edge products that elevate overall performance.

Their technology has application across multiple industries including aerospace and defense, consumer electronics, 5G communications, batteries, authentication, automotive, and clean energy. Their agreement with Panasonic is certainly a great start to empowering their growth in one of many verticals. Overall the TAM is ~$32B and with current growth rates, it’ll increase to a whopping ~$61B by 2026.

MMAT’s goal is to shape a smarter and more sustainable world. If you look through their presentation, you can continue to evaluate the many ways their technology transforms everyday lives. We highly suggest you take a look.

Additional Resources:

1. @LauraLoomer’s video on MMAT
2. @metaheadj’s post on X, displaying Rob Stone‘s response update for an investor

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What Happened:

So, MMAT issued a press release on January  11th, 2024, announcing a proposed settlement with the Securities and Exchange Commission (SEC) concerning an investigation related to the Torchlight Energy Resources, Inc. and Metamaterial Inc. merger.

According to the release, The company has extended a settlement offer (Proposed SEC Settlement) to the SEC’s Division of Enforcement. This proposed settlement aims to address concerns regarding antifraud, reporting, books and records, and internal accounting control provisions of securities laws. It is important to note that the Proposed SEC Settlement is contingent on approval by the SEC Commissioners, and the company cannot predict the approval timeline.

If accepted, the Proposed SEC Settlement would involve the SEC entering a cease-and-desist order and the company paying a civil money penalty of $1 million over a one-year period in four installments. Notably, the company would neither admit nor deny the findings outlined in the Order.

The company’s board of directors and management team view the Proposed SEC Settlement as beneficial for shareholders. If approved, it is expected to remove uncertainty surrounding the investigation, enabling the company to focus on advancing its business objectives.

So What:

If you’ve just read through the announcement and are confused, you’re not alone. It appears that many investors may have mis-read the press release, thinking that the SEC was being punished and MMAT was reaching a settlement agreement, but it appears to be the other way around.

In the event of approval, the company is obligated to pay a civil money penalty of $1 million. This penalty would be paid in four installments over the course of one year, following an agreed-upon payment plan. However, the PR also notes that the company cannot predict with certainty whether or when the Proposed SEC Settlement will even be approved by the SEC Commissioners.

According to another user on X, @AShortSqueeze, MMAT’s initial analysis has potentially revealed the motherload of counterfeit shares.

But if you scroll through the comments, you’ll see other users pointing out that this information is actually old news. This is just one of many widely circulated posts that might have been misunderstood.

Significant Coverage:

Another theory suggests that a notable influencer in the financial space, @MoonMarket_, has set their sights on the company and is conducting additional due diligence. With a substantial following of almost 75K users, the influencer’s involvement could have contributed to a significant fluctuation in today’s trading session. It’s important to recognize that X is packed with plenty of financial influencers, and blindly following their moves can be risky. Many are involved in day trades, momentum trading, or at least contemplating such strategies.

Conclusion:

The buzz around MMAT today seems fuelled by a mix of misrepresented themes and recycled news, creating the illusion of fresh, imminent developments.

As per usual, the magnitude of MMAT’s technology and potential integrations across various verticals continues to create a roar of excitement. On another front, we’re also continuing to see speculation about a short squeeze due to substantial amounts of counterfeit shares.

For now, patience is key and we suggest closely monitoring developments. MMAT especially tends to be quite volatile.

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Integrated Cannabis Solutions (OTC: IGPK) has undergone a remarkable uptrend, surging an impressive 633% since December 11th, 2023, with 166% of that surge taking place across yesterday’s trading session and today, January 11th, 2023. Both days have been marked by unprecedented volume – Yahoo Finance reported an almost 30x increase, with 115,867,027 shares traded by close yesterday. We’re already seeing 90,092,317 shares traded this morning and it’s just barely noon. Today we’ll explore the catalysts behind the surge, offer a comprehensive overview of the company, and evaluate IGPK’s potential for sustained growth throughout 2024.

Background:

Let’s get straight to it. IGPK is the result of a recent reverse merger with Integrated Cannabis Solutions and JFH Digital E-Commerce Corp. The first thing you’ll notice is finding the website isn’t a walk in the park, we’re fairly certain there isn’t one yet, at least one that will help in any way related to more investment information. Your best bet for more any information is to check out IGPK’s OTC Market page for details, but even the company description on there is not accurate. We’ve mainly found the following information through filings, IGPK’s Twitter, and other online users.

Keep in mind this breakdown might not be flawless given we’re piecing it together mostly from what folks on X are saying. But we’ll try our absolute best to lay it all out for you.

IGPK appears to have been a shell for little while until JFH stepped in. A user on X, @stockplayer30, broke it down fairly simply, stating that the shell’s slate was wiped clean, cancelling all notes payable and any debt. Whether it’s a promissory note, convertible note, or convertible debenture, the main point is they ditched all debt. JFH has an opportunity to start fresh, and it certainly makes this deal a lot more interesting.

Just a heads up, it’s a Chinese merger. If the idea of a Chinese leadership team makes you a bit wary, you might want to pause here. However if you were in the trading game during the summer of ’23, you probably remember those crazy spikes in some Chinese Nasdaq deals. And get this – no big press releases or SEC filings to explain those sudden jumps either.

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Company Description:

Onto what the company actually does. According to @SuperRobotOTC on X, this is a digital e-commerce company based in China, here’s a link to their e-commerce website. This user also put together a great overview of the company on YouTube, if you’d like to watch something informative in video format, click here.

Another user, @igal_n, found a blurb on the company that states, “Junfenghuang (JFH) is a digital asset. It is a token issued by Uplus Future Company with the help of blockchain technology. It has no direct relationship with the original equity”.

The Potential:

What makes this story extremely interesting is the sheer magnitude of how large JFH is, the intrinsic value does not appear to be valued accurately in the market, given it’s only freshly merged into IGPK’s tiny shell company on the OTC.

Their Gross Merchandise Value (GMV) is heading north of 50 billion yuan, and post-merger profits from service outlets are looking at a hefty 10 billion yuan – yes, billion with a B.

Steering the ship is a leadership team featuring President Wang Dejun, Treasurer Xie Weiji, and Director Yang Lanfang. With a whopping 750 subsidiaries, 250,000 merchants, and 30 million registered users. We’ve also heard from other sources that the registered users could be nearly double that, coming in at 50 million registered users.

These numbers are substantial for a company with a $7 million market cap. Looking ahead, it won’t be shocking if IGPK sets its sights on moving up to a bigger exchange like NASDAQ. It’s no secret they’re already in the big leagues – or it at least appears so. If that were the case, they’d of course have enhanced credibility, more visibility, and increased access to capital with institutional funding.

The App:

Now, you might be wondering, “Sounds cool, but it’s a Chinese merger with a whole setup on the other side of the planet. Can we trust this info?” @SuperRobotOTC has also gone the extra mile by downloading the app, and gave us the lowdown in video format. On top of the SEC filings, this is an added layer of trust & credibility we can attribute to this new venture. Here’s the link to the video.

Conclusion:

Fortunately it appears IGPK is still for the most part flying under the radar. There’s not even a proper website or accurate update on IGPK’s OTC Market overview to tell us what the company even entails. But here’s the silver lining – that might mean you’re still early. The intrinsic value of IGPK appears strongly disproportionate to its current value in the market.

Our advice? Keep a close eye on IGPK’s journey as it takes on this exciting phase of growth and exploration. It’s likely this story will catch wind quickly and it could be a great time to take advantage. As @SuperRobotOTC eluded to in his video, this could be the OTC’s largest merger, with a potential $70B valuation.

We will update you on IGPK when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Sonoma Pharmaceuticals (NASDAQ: SNOA) has been navigating through unpredictable market fluctuations lately, experiencing a noteworthy surge of approximately 32% today on January 10th, 2024. Although this might seem modest when juxtaposed with our other coverage & articles, our interest in SNOA lies in its promising trajectory and the speculations circulating among online users.

In the realm of biopharmaceuticals, SNOA finds itself amidst a pool of undervalued companies grappling with the challenging landscape of venture market conditions given the current cost of capital for companies that are pre-profitability. Since its funding round on October 18, the stock has witnessed a staggering 80% decline, settling at what appears to be rock bottom levels.

The critical question looming is whether there is untapped potential from the current levels. According to insights gathered from online discussions, the consensus is optimistic. But before we delve into the specifics, let’s establish some foundational background information.

Background:

SNOA is a key player in the global healthcare scene, specializing in the development and production of stabilized hypochlorous acid (HOCl) products. These versatile products find applications in various healthcare areas, such as wound care, eye care, oral and nasal care, dermatology, podiatry, animal health, and as non-toxic disinfectants.

What sets Sonoma’s products apart is their ability to tackle infections, alleviate itch and pain, reduce scarring, and counter harmful inflammatory responses in a safe and effective manner. Extensive in vitro and clinical studies of HOCl have underscored its impressive properties, including being antipruritic, antimicrobial, antiviral, and anti-inflammatory.

The magic of Sonoma’s stabilized HOCl lies in its immediate relief of itch and pain, pathogen-killing prowess, biofilm breakdown ability, all without causing any stinging or irritation to the skin. Additionally, it aids the natural healing process by oxygenating the cells in the treated area.

Sonoma’s products have made their mark in 55 countries worldwide, either through direct sales or partnerships, and the company actively seeks new distribution collaborators. Headquartered in Boulder, Colorado, Sonoma operates manufacturing facilities in Latin America, while its European marketing and sales hub is located in Roermond, Netherlands.

Breakdown On The Technology:

Let’s talk about their Microcyn® Technology, a stabilized triple-action topical technology.

Multifaceted benefits…

• Powerful Anti-Microbial: Effectively diminishes microbial load, demonstrating prowess in biofilm destruction.
• Anti-Inflammatory Agent: Exhibits anti-inflammatory properties, providing relief from itch and pain.
• Anti-Pruritic Activity: Proven effectiveness in alleviating itching, enhancing overall comfort.
• Tissue Healing: Stimulates increased blood and oxygen flow to wounds, fostering a conducive environment for tissue recovery.

Safety profile…

• No Drug Interactions or Contraindications: Demonstrates compatibility without risking complications arising from drug interactions.
• Proven Safety: With millions of patients treated globally, there hasn’t been a single report of a serious adverse effect.
• Rigorous Clinical Trials: Backed by 30+ human clinical trials involving over 1,500 patients, providing a robust foundation of evidence.

Product Efficacy…

• No Mutations or Resistance: In contrast to overused antibiotics that may lead to dangerous epidemics like MRSA, this solution offers a sustainable alternative.
  Not just groundbreaking in its effectiveness, this product also stands as a cost-effective solution:
• Preventative Measures: Reduces the need for frequent hospital or physician visits, proving valuable in a preventative capacity.
• Savings for Medicare/Hospitals: Accelerates healing, subsequently reducing hospital stays and presenting a practical avenue for cost savings.

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Latest Press Release:

NovaBay Pharmaceuticals, Inc. (NYSE: NBY) and SNOA entered into an agreement for the sale and marketing of Avenova®-branded products by Sonoma in the European Union. The collaboration involves combining Sonoma’s existing eye product, Ocudox®, which has received approval for sale in the European Union, with the Avenova brand. These products will be marketed through Sonoma’s established European distribution network.

Sonoma will manufacture Ocudox by Avenova with packaging similar to NovaBay’s Avenova products, recognized as the leading hypochlorous acid-based eye care items in the United States. Sonoma will pay NovaBay a royalty fee based on the sales of Ocudox by Avenova. Importantly, Sonoma will continue marketing its Ocudox product independently in the European Union.

The partnership is seen as an opportunity for both companies to leverage their strengths. Sonoma, with its strong presence in the European Union, aims to expand its eye care offerings by adding Avenova-branded products. NovaBay anticipates the European market to be comparable in size to the U.S., providing an opportunity to double its sales of Avenova. NovaBay will maintain exclusivity in selling Avenova-branded products in the U.S.

So What:

Typically investors are left to their own accord to decipher the importance of a release, here’s a further breakdown as to why this partnership is beneficial for SNOA:

• European Expansion: Sonoma can now broaden its eye care offerings in the EU with the addition of Avenova-branded products, diversifying its portfolio.
• Strategic Combo: Merging Sonoma’s Ocudox® with Avenova branding combines Sonoma’s global distribution expertise with Avenova’s established name, creating a unique product for the European market.
• Financial Boost: Producing Ocudox by Avenova generates a royalty fee for Sonoma, enhancing its financial stability.
• Smart Positioning: The collaboration strategically leverages Sonoma’s EU presence and Avenova’s U.S. dry eye market recognition, strengthening Sonoma’s competitive position.
• Blepharitis Solution: Sonoma’s CE-marked Ocudox by Avenova addresses blepharitis, offering a valuable solution for a prevalent eye health issue in Europe.
• Market Growth: Recognizing the EU’s market size comparable to the U.S. signals significant growth potential for Sonoma, aligning with its goal to expand its eye care offerings.

Market Cap vs. Cash Position:

As it stands, SNOA’s current market capitalization hovers around $2.8 million, closely mirroring its $2.9 million cash position on the balance sheet. This doesn’t mark the most substantial market cap to cash comparison on record, it’s not entirely unprecedented to witness companies trading with cash holdings two or even three times their market cap. But nonetheless, this observation is still important. In the scenario of a complete business sell-off, the cash reserves alone would surpass the company’s entire valuation.

This calculation wouldn’t even account for their assets or potential future cash flows of products. The company has 21 FDA clearances for its medical devices, got CE marks for over 39 products, and has the green light from regulators worldwide. All of this is packed into a market cap of just $2.8 million…

Low Float:

Adding to the intrigue surrounding SNOA is its remarkably low float, standing at just 13.43 million shares. As many of you are likely aware, the float represents the shares available for trading in the open market, and this can potentially bode well for a public company. Here’s why:

• Price Volatility: With a low float, there is the potential for increased price volatility. Limited supply and heightened demand can lead to more significant price swings, which can attract short-term traders and investors seeking quick returns.
• Responsive to News: Public companies with a low float tend to be more responsive to positive news or strong financial results. The limited number of shares available can result in a quicker and more pronounced market reaction, potentially driving the stock price higher.
• Strategic Control: A low float provides management and major stakeholders with more strategic control over the company’s direction. It becomes easier to influence stock movements, attract investor attention, and implement changes in response to market dynamics.
• Potential for Rapid Appreciation: In certain situations, a low float can contribute to rapid stock appreciation. Increased demand, whether due to positive developments or investor sentiment, can result in a quicker uptrend in share prices.
• Takeover Attractiveness: Companies with a low float may be perceived as more attractive acquisition targets. A potential acquirer may find it easier to accumulate a significant stake in the company, leading to increased buyout interest and potentially higher acquisition premiums.

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Short Squeeze Potential:

We couldn’t help but take notice of the substantial off-exchange short interest, currently standing at around 53%.

Off-exchange short interest refers to the level of short positions held by traders or institutions that are executed outside of the traditional exchanges. These trades often take place in dark pools, which are private forums for trading securities away from public scrutiny.

The reported dark pool short interest may not perfectly capture the entire market sentiment, but it’s an important factor to keep on your radar. In the world of investments, a high dark pool short interest is definitely worth noting, and SNOA’s is fairly high.

Now, consider the scenario of a potential short squeeze. Could SNOA opt for additional dilution to raise funds at a higher valuation if one occurs?

Maybe, but according to insights from @MoonMarket_, it seems unlikely. In February 2023, SNOA had an ATM open for $420,838, but the remaining capacity is now $0, implying that the company is less likely to exert downward pressure on the share price.

On top of this, it’s worth highlighting that SNOA boasts enough cash runway to last another year, suggesting that they might not be in a hurry to dilute investors.

Conclusion:

In the grand scheme, SNOA’s current valuation presents an intriguing mix of indicators, with some financial influencers on X also signaling at potential near-term appreciation. However it’s crucial to exercise caution, considering the online landscape is peppered with traders who may not always be on the mark—just as even top research analysts can make mistakes. Nevertheless, the multitude of factors at play makes SNOA a particularly interesting stock. As is customary with such companies, developments unfold swiftly, so be sure to maintain a vigilant watch.

We will update you on SNOA when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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