Nextbridge to nowhere?

MMTLP in 2025: What’s Next for Meta Materials Preferred Shares Investors?

Background FINRA Halt Recent Developments 2025 Outlook What You Can Do

The MMTLP Saga: A Brief Background

The story of Meta Materials Preferred Shares (MMTLP) is a complex and contentious chapter in the world of retail investing. Originating from the June 2021 merger between Meta Materials Inc. (NASDAQ: MMAT) and Torchlight Energy Resources (TRCH), MMTLP shares were issued as a placeholder for a dividend tied to Torchlight’s oil and gas assets in the Orogrande Basin, Texas. These assets were to be spun off into a private company, Next Bridge Hydrocarbons, with MMTLP shareholders receiving one Next Bridge share for each MMTLP share held.

Unexpectedly, MMTLP began trading on the over-the-counter (OTC) market in October 2021, despite not being intended as a tradable security. The shares saw significant volatility, reaching a 52-week high of $12.50 before a dramatic turn of events in December 2022. Public.com This blog post explores the FINRA trading halt, recent developments, and what 2025 might hold for MMTLP investors.

The FINRA Halt: What Happened?

On December 9, 2022, the Financial Industry Regulatory Authority (FINRA) imposed a rare U3 trading halt on MMTLP, citing concerns about the settlement and clearance process as the shares were set to be canceled on December 14, 2022. This halt followed Meta Materials’ announcement on November 23, 2022, that MMTLP shareholders with settled positions as of December 12, 2022, would receive one share of Next Bridge Hydrocarbons for each MMTLP share, with the MMTLP symbol deleted on December 13, 2022. FINRA.org

The halt prevented investors from trading MMTLP shares in the final days before the spinoff, leaving many unable to sell positions that had been trading as high as $8.50 just days earlier. The transition to Next Bridge shares, which are not publicly traded or eligible for electronic transfer through the Depository Trust Company (DTC), left investors with illiquid assets and significant uncertainty. FINRA.org

Key Dates:

• December 8, 2022: Last day to purchase MMTLP shares eligible for the Next Bridge distribution.
• December 12, 2022: Record date for shareholders to receive Next Bridge shares.
• December 13, 2022: MMTLP symbol deleted by FINRA.
• December 14, 2022: MMTLP shares canceled, and Next Bridge shares distributed.

FINRA stated the halt was to protect investors and maintain market integrity, emphasizing that short positions were not a factor in the decision. However, investors expressed frustration over the lack of transparency and the abrupt inability to exit their positions, fueling allegations of market manipulation and regulatory failure. Vocal.media

Recent Developments: A Glimmer of Hope?

The MMTLP situation has remained a focal point for retail investors, with recent developments in 2025 suggesting potential progress, though much remains speculative. Here are the key updates:

Investor Advocacy and Regulatory Scrutiny

A Freedom of Information Act (FOIA) request revealed that the Securities and Exchange Commission (SEC) received over 435,000 emails related to the MMTLP halt, indicating significant investor outrage and engagement. This volume of correspondence suggests that the issue has gained considerable attention, potentially pressuring regulators to act. X Post by @GardnerWade3

Advocacy groups like Fair Markets Now estimate that 64,000–65,000 investors are affected and are pushing for accountability from FINRA and the SEC. Their campaigns, including email drives to the President, Vice President, and the Department of Justice (DOJ), aim to highlight systemic issues in market regulation. Some investors hope that the Department of Government Efficiency (DOGE) could also intervene to address perceived corruption or mismanagement. FairMarketsNow.org

Congressional Involvement

In December 2023, Rep. Ralph Norman led a letter to FINRA and the SEC seeking clarity on the MMTLP halt, signaling congressional interest. While no specific outcomes have been reported, this political pressure could lead to further investigations or regulatory action in 2025. Norman.house.gov

Social Media Sentiment

Posts on X reflect ongoing investor frustration but also optimism about a potential resolution in 2025. For example, users like @KurtKloborg have suggested that FINRA is working on aligning components for a resolution, though no official confirmation supports this claim. Other posts allege that FINRA’s actions, including a closed-door meeting with SEC officials post-halt, indicate a “regulatory fire drill” to manage backlash rather than protect investors. These claims remain unverified but highlight the intensity of investor sentiment. X Post by @XsyLocke

Legal Actions and Precedents

Some investors are exploring class-action lawsuits, drawing parallels to cases like AmTrust Financial Services, where a $13 million settlement was reached after preferred shares were mishandled during a go-private deal. While punitive damages are rare, a successful lawsuit could provide partial compensation for MMTLP investors. Yahoo Finance

The 2025 Outlook: What Could Happen?

While no definitive resolution has been confirmed, several scenarios offer hope for MMTLP investors in 2025:

• Asset Monetization by Next Bridge: If Next Bridge Hydrocarbons successfully develops or sells its 134,000 acres of oil and gas assets in the Orogrande Basin, shareholders could receive a cash dividend. However, the region’s unproven nature compared to areas like the Permian Basin makes this uncertain.
• Next Bridge IPO: Though Next Bridge has stated there is “no current expectation for a public market,” a future initial public offering (IPO) could allow shareholders to trade their shares, providing liquidity and potential value.
• Regulatory or Legal Resolution: Continued pressure from advocacy groups and congressional inquiries could lead to a regulatory investigation or settlement. If evidence of market manipulation (e.g., naked shorting) is substantiated, FINRA or the SEC might facilitate compensation or a mechanism to validate shares.
• Market Reforms: The MMTLP case could expose broader issues in OTC markets, prompting reforms that benefit investors. For instance, addressing failures-to-deliver (FTDs) or improving transparency in corporate actions could prevent similar situations.

However, significant challenges remain. Next Bridge shares are illiquid, with no secondary market, and valuation is difficult due to limited public disclosures. FINRA has maintained that the halt was necessary and that 165,472,241 Next Bridge shares were distributed as planned, matching the number of MMTLP shares outstanding. Allegations of “counterfeit shares” or naked shorting lack concrete evidence, and legal battles could take years without guaranteed outcomes. FINRA.org

Optimistic Scenario: In the best case, Next Bridge monetizes its assets or goes public, providing liquidity and value to shareholders. Alternatively, a regulatory or legal resolution could offer compensation, restoring some investor confidence.

What MMTLP Investors Can Do in 2025

For those holding Next Bridge shares (formerly MMTLP), here are practical steps to navigate the situation:

1. Verify Your Holdings: Contact your broker to confirm that your Next Bridge shares are registered with American Stock Transfer & Trust Company, LLC (AST), Next Bridge’s transfer agent.
2. Monitor Official Sources: Stay updated via Meta Materials’ investor relations page (metamaterial.com), Next Bridge announcements, or FINRA’s website (finra.org). Be cautious of unverified claims on social media.
3. Join Advocacy Efforts: Engage with groups like Fair Markets Now (fairmarketsnow.org) to support campaigns for regulatory accountability.
4. Consult Professionals: Speak with a financial advisor or securities lawyer to explore legal options, such as joining a class-action lawsuit.
5. Be Patient but Proactive: While waiting for potential asset monetization or regulatory developments, keep detailed records of your MMTLP transactions and stay informed about Next Bridge’s progress.

The MMTLP situation underscores the complexities of corporate actions and the importance of regulatory transparency. While 2025 may bring progress, investors should approach the situation with realistic expectations and seek professional guidance.

Disclaimer: This blog post is for informational purposes only and does not constitute financial or legal advice. Always conduct your own research and consult with a professional before making investment decisions.

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