Summary by Futu AI
Meta Materials Inc. has completed the sale of its authentication business assets to Authentix, Inc. and Authentix Canada Solutions, Inc. for a total cash consideration of $10 million, as detailed in a Form 8-K report filed with the SEC. The transaction, which was finalized on July 16, 2024, included $4 million in prior deposits and an additional $3 million held in escrow for post-closing obligations. Concurrently, the company terminated the remaining five employees of the authentication business, who received severance and employment offers from Authentix. Despite the sale, Meta Materials continues to face financial challenges, with ongoing concerns about its ability to continue operations. The company is exploring strategic alternatives, including asset sales and additional financing, but there is a low expectation of success, raising the possibility of a winddown and bankruptcy. Additionally, Meta Materials' subsidiary, MMI, filed for bankruptcy in Ontario on July 12, 2024, with Grant Thornton Limited appointed as the trustee.
