Is the Nanotech Market Headed To Be Worth Billions?

Source: Streetwise Reports   06/15/2022

The tiny world of metamaterials could do everything from helping to deice your car’s windows to helping you see clearly into your microwave. And the industry could be worth billions.

Nanotech company Meta Materials Inc. (MMAT:NASDAQ; MMAX:CSE; 1T01:FRA) is forging new frontiers in the electronics, communications, aerospace, automotive, and clean energy spaces with the use of metamaterials, which Lux Research projects could be a $10.7 billion market by 2030.

But it’s what the Nova Scotia-based company might do for your kitchen that will get your attention the quickest. Its tiny tech could clear up your view of that casserole reheating in your microwave.

The company said total revenue grew 264% year-over-year to $4.1 million in 2021 on the strength of $1.8 million from the acquisition of Nanotech Security.

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“All microwave ovens produce radiation, which is why windows within their doors have significant shielding,” wrote ROTH Capital Partners analyst Gerry Sweeney. “But this also obscures visibility into the oven. MMAT EMI shielding uses nanostructures to divert radiation waves back into the oven allowing for a clear window. Furthermore, initial testing indicates lower amounts of radiation escape. Initial testing, results, and NANOWEB® line production likely open the door to increasing conversations with OEMs in coming quarters.”

ROTH initiated coverage on META and in May reiterated its Buy rating with a target of $2.25.

Testing of the EMI shielding has been “highly positive,” Sweeney said, and the company’s Pleasanton, Calif., large-scale pilot NANOWEB® line is operational and generating materials close to benchmark standards.

“We anticipate larger sample sales to begin in later 2H 2022—a positive step towards full commercialization,” Sweeney wrote.

Capabilities Catch Up to Nanotech

Metamaterials were first developed in the 1960s, but it wasn’t until the 2000s that design and manufacturing capabilities caught up to the technology. META’s platform enables brands to deliver breakthrough nanotechnology products, including self-deicing and defogging car and truck headlights and windows, see-through antennas, and augmented reality glasses that look like regular glasses and even have prescription lenses.

The company also makes coatings for eyeglasses to protect pilots’ eyes from laser strikes, and transparent 5G antennas.

The company said total revenue grew 264% year-over-year to $4.1 million in 2021 on the strength of $1.8 million from the acquisition of Nanotech Security. It is currently pursuing contracts with several original equipment manufacturers (OEMs).

META said it currently has 302 active utility and design patent documents, of which 175 patents have been issued.

“META has been innovating over the last 10 years,” President, Chief Executive Officer, and founder George Palikaras said in a video on META’s website. “We start with the design using computer algorithms that design the functions of the designed material. … We can use a single computer with a single engineer and reduce the time to designing and innovating in the material space from six months down to a few hours.”

He said that reduces costs and makes META “a preferred partner and a preferred developer that enables a wide range of applications in the industry.”

Its NANOWEB® product is the “most transparent and conductive film available today on the market,” Palikaras said.

Company ‘Transformed’ by Acquisitions

As of March 31, the company’s cash and cash equivalents totaled $30.2 million, and it has no debt except for $3.3 million in interest-free loans from the Atlantic Canada Opportunities Agency. Its market cap is $447.89 million, and it has 296.61 million shares outstanding. It trades in a 52-week range of $21.76 and $1.03.

META became a NASDAQ-listed company through the reverse takeover of Torchlight Energy Resources in 2021. Last year, it also acquired Nanotech Security and the assets and intellectual property of Interglass Technology AG, a Swiss lens manufacturer that is the foundation for META’s augmented reality glasses technology. This spring, it acquired Plasma App Ltd.

“In 2021, our company was transformed by three acquisitions and significant capital raising,” Palikaras said in the company’s annual report. “We have used that to expand our capabilities, intellectual property facilities, as well as the size of our multinational team of subject matter experts.”

InvestorsObserver gave the company an overall rank of 75, which is “an above average rank” under its rating system, which it said considers available information about a company and compares it to other stocks it has data on to get that value.

Disclosures:
1) Steve Sobek compiled this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
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