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Sunday, November 27, 2022

Meta Materials Inc (OTCMKTS: MMTLP) Short Squeeze Enters Final Phase as META Approves Record & Distribution Dates for Next Bridge Hydrocarbons Spin-Off

Meta Materials Inc (OTCMKTS: MMTLP) is gearing up to finish the week off strong after META announced on Wednesday its BOD has approved the distribution to the holders of META’s Series A Non-Voting Preferred Stock; MMTLP. Shareholders of record is December 12 with the distribution date set for December 14 after which MMTLP will cease to trade. There is a full explanation of the record and distribution dates below. Please note that FINRA has not yet approved the dates, once they do, they will file a 424b. Upon completion of the distribution, Next Bridge Hydrocarbons will be an independent private Company sitting on 3.2 billion to 3.7 billion potential Recovery (BBL) oil at the Company’s Orogrande Project, located in West Texas.

MMTLP is currently the biggest short squeeze on the markets with an estimated 80 million + shares sold short that have to cover before MMTLP stops trading on December 14. Since early October MMTLP has skyrocketed up the charts from well under $2 to recent highs of $12.50 per share. As we have discussed in previous articles, historically short squeezes occur AFTER the record date has been set which means that MMTLP is finally in a prime position to begin squeezing. MMTLP has already been widely compared to recent short squeezes $HKD and Overstock $OSTK which squeezed from $7 to $120 per share AFTER the record date had been announced. The excitement on MMTLP is palpable with longs vowing not to start selling until $100 per share. 

ImagenFriday 1PM Market Close MMTLP Update: on Friday META filed form 424b meaning FINRA has approved the record and distribution dates for December 12 and 14. MMTLP has been fairly quiet on the news and closed green just over $10 per share. Investors are looking for a breakout over $12.50 and a move on to new highs. It has also emerged today that shorts are getting liquidation notices from their brokers as the one in the image to the left. In the case of TradeZero America all short positions in MMTLP must be covered by December 9 or the brokers risk department will automatically liquidate the position. We gave the heads up on MMTLP initially on October 16 in this article found here when MMTLP was $4 per share. We will be updating on MMTLP in the next few days so make sure you are subscribed to Microcapdaily by entering your email in the box below. 

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Meta Materials Inc (OTCMKTS: MMTLP) is the placeholder for the Next Bridge Hydrocarbons Spin off from Meta Materials. One MMTLP (Series A Preferred share) will be exchanged into one Next Bridge common share once the spinoff is completed.

Next Bridge Hydrocarbons is exclusively developing its Orogrande Basin asset, the Orogrande Project, located in West Texas. The Orogrande Project has shown to have potential for multi-stack pay zone, totaling 600 to 800 feet thick, with geologic and reservoir similarities to the Midland Basin. 134,000 Net Acres, 3,150 Potential Well Locations and 3.2 billion to 3.7 billion potential Recovery (BBL)

On November 23 Meta Materials announced its BOD has approved the distribution to the holders of META’s Series A Non-Voting Preferred Stock; MMTLP. Upon completion of the distribution, Next Bridge will be an independent public reporting company and MMTLP will cease to trade at the market close on December 14. You can find the press release here. 

December 12 is the RECORD DATE As long as you are on record as a shareholder on December 12th after 4pm EST close, you will be entitled to recieve Next Bridge Shares. This also confirms that non TRCH, MMTLP shareholders will aslo recieve the dividend. The record date is on a Monday and the distribution date is on a Wednesday. This means that Shorts have until December 14th to close out their posotions. The estimated 80 million sort posotion will be forced to cover if they do not by the time the Company is taken private.

The image above was posted on the subreddit short squeeze and quickly become one of the top posts on the Short Squeeze subreddit.

boborygmy replied: “It looks like it will still be tradeable until EOD the 14th. So let’s game this out, from a short perspective. Let’s say you’re short a shit ton of shares. You can let this go until absolutely the very last day, because even if you buy shares to cover, you’re not getting the shares of the new company. There’s no extra incentive to close by the 12th. Each of those covered bought shares just takes you from having negative one share of the new company, to zero.
So the shorts want you to sell out, cheaper, before EOD the 12th. They want you thinking that there’ll be some confusion about selling between the 12th and 14th. But there will (I think) be massive short buying to close on those days. The last day (or maybe two) is when the shit is REALLY going to hit the fan.If you hold on the 12th, and sell before EOD the 14th, your broker will handle distributing those shares for you. And it’s ok to sell the shares until EOD the 14th.”

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Both Rollerpigeons and MarketMoves made videos focused on estimating the total open short position currently in MMTLP and we share them here:

Rollerpigeons stated: “Again, my range of shorts in (MMTLP) is shorts and synthetics are about 216 to 280 million shares sold short. Thats a quick and dirty linear method given a data set I had and given the other data set based on the free float and I had a range. This is a 1 to 1 assuming 1 short covers one buy of MMTLP. Of course, given this graph MMTLP can go very, very high, it can easily get to $400, if you want to keep graphing it. $400 per share. Thats just given this graph, that’s not giving financial advice, that’s just math if you want to keep graphing something. But that doesn’t take into account that MMTLP will go very parabolic once that break over point of $60 per share is reached. Again, that was a quick and dirty linear model. Simple math, just to give you what I consider to be my estimates.”  

MarketMoves made a video Wednesday evening during which he focused some of it on FTD – failure to deliver. He explained that FTDs only occur when there are short sellers as you can’t fail to deliver on a stock that you own. In the case of short sellers there is either a failure to borrow or locate a like-kind equity or a failure to buy within 2 days after the trade known as the settlement date (T+2). While failing shares are rare and make up for less than 1% of overall market volume, FTDs do provide a good indication of how many shares have been shorted in a particular security which is equal too roughly 100 times a given days FTDs. MarketMoves then references that FTD spreadsheet on MMTLP directly from the SEC website stating: “If we add up all the FTDs (to November 1) there have been a total of 13,239,940 FTDs. The reason I am adding them all up together is to get an idea of who many shorts there are.  We know that 1% of total volume results in FTDs so we divide the 13,239,940 FTDs by 1% we get 1,323,994,000 (1.3 billion MMTLP shares sold short up to November 1) So let’s say 80% of shorts did close out their position finally, which I think is very unlikely, but let’s just use 80% and if that’s the case we currently have somewhere in the range of 264 million open short positions in MMTLP. If 90% of shorts closed their positions, again I think this is very unlikely, there would be 132 million open short positions. This is just looking at MMTLP data, this does not take into account the open short position left over from Torchlight Energy because we know there was a large short position trapped in TRCH.” MarketMoves also pointed out that MMTLP has been on the OTC threshold list for the past 27 days and to get on this list a security must have a minimum of 10,000 FTDs per day. He calculated that MMTLP had a minimum of 270,000 FTDs over the past 27 days stating: “If we calculate that FTD represent 1% of shorts there were 27 million extra short position opened and if we calculate that 80% of these shorts closed their position that means we have an extra 5.4 million shares sold short on top of the numbers I already gave you. It’s going to be quite interesting to see all these shorts trying to cover their positions because they can’t be short a stock that doesn’t trade. There is a ton of shorts out there, we know that to be the case, I don’t know exactly how many shorts there are but I know there is a ton of open short positions in MMTLP.  

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As we can see from the videos above from RollerPigeons and MarketMoves two investors that have been following MMTLP for a long time, many months before the current runup they believe the short position to be much higher than the 70 to 80 million shares sold short that is generally estimated to be the current short position on MMTLP. With the record and distribution dates now set for Monday and Wednesday December 12 and 14th pending FINRA approval MMTLP shorts now have to buy back every single share currently held short before the distribution date on Wednesday November 14 at 4p after which MMTLP will no longer exist. Any short positions that are still open leading up to the distibution date and there and could be tens or even hundreds of millions will be closed out by brokers on behalf of their clients and they will pay whatever price they have too for MMTLP to close out the position. We will be updating on MMTLP in the next few days so make sure you are subscribed to microcapdaily.com 

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Disclosure: we hold no position in MMTLP either long or short and we have not been compensated for this article.

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