Nanotech Co. Gets New Order From G10 Central Bank Customer

An unspecified G10 central bank customer is furthering its relationship with nanotech company Meta Materials Inc. (MMAT:NASDAQ; MMAX:CSE; MMAT:FSE), awarding a new purchase order to the company to develop anti-counterfeiting measures.

The new order adds US$855,000 to the US$4.3 million received last fall, bringing the total orders received under the agreement to about US$14.4 million, the company said.

It's part of an agreement with the bank for a maximum of US$41.5 million in orders over up to five years. The customer can increase the scope of the award.

Nova Scotia-based META is also applying its futuristic technology to the communications, health and wellness, aerospace, automotive, and clean energy sectors. It's attracting attention from analysts and consumers and made a splash at this year's Consumer Electronics Show in Las Vegas last month.

Analyst Jake Sekelsky of Alliance Global Partners initiated coverage on the company last week with a Buy rating and a US$2 per share target.

Analyst Jake Sekelsky of Alliance Global Partners initiated coverage on the company last week with a Buy rating and a US$2 per share target.

"By making OEMs' products smaller, safer, more efficient and functional, we believe Meta is well-positioned to secure partnerships with major companies over the next year," Sekelsky wrote on Feb. 17. "In short, we believe Meta's solutions have the potential to disrupt various end markets."

META would not name the G10 bank or describe the anti-counterfeiting measures being developed for security reasons.

Its KolourOptik® technology can include images with omnidirectional movement, 3D depth, or holographic security patterns on not just currency, but on documents, smart packaging, and gift cards. The technology can also help prevent loss of life due to counterfeit medication.

The company said it is planning the general launch of KolourOptik® sometime this year.

"We have been producing samples . . .  and we've sent those out to a number of different potential partners," Rob Stone, META’s vice president for corporate development and communications, told Streetwise Reports.

Those samples have been tested on substrates and run through a washing machine several times to test how it all holds together.

"They've done some adhesion and durability tests, and results of those so far have been good," Stone said.

The Catalyst: An Expensive Problem Worldwide

Fake goods, currency, and documents are an expensive problem worldwide. The total value of imported fake goods was about US$509 billion in 2016, or about 3.3% of global trade, according to a 2019 OECD report. META said the security printing market is valued at US$29.8 billion and is growing.

"The proliferation of fraudulent operations around the world and the usage of counterfeit money in industries like banking, gaming, and retail are the main drivers of this market's expansion," Adroit Market Research said about the counterfeit money detection market that has sprung up to defend against the threat of fake currency.

META was the most talked about brand at CES according to social media trend tracker BuzzRadar.

"This market is finding new growth opportunities thanks to the rise of new retail automated devices such as portable point-of-sale terminals," the report said. "Governments around the world are making an effort to minimize the use of fake cash."

The deal with the G10 bank is the first from a central bank to use META's technology for developing security features for banknotes, Sekelsky wrote.

"Given the customization properties of the technology, we believe a win under the framework agreement for broader implementation with this Central Bank and particular denomination should lead to additional opportunities with other Central Banks and different denominations in the future," he wrote. "Given the time and costs associated with testing a particular security feature for a banknote, we view the KolourOptik® vertical as a potentially stable business with sticky customers."

Company Creates Buzz at CES

Developed first in the 1960s, metamaterials came into their own when design and manufacturing capabilities caught up to the technology in the 2000s.

META is using them to develop nanotechnology products like self-deicing and defogging car and truck headlights and windows, see-through antennas, augmented reality glasses that look like regular glasses, and special eyewear that protects pilots’ eyes from laser strikes.

The company was quite popular at last month's Consumer Electronics Show in Las Vegas. It was named a CES 2023 Innovation Awards honoree going into the show for its NANOWEB® transparent EMI shielding film, which promises to clear up your microwave's window to better tell when your leftovers are ready.

The microwave display, with its completely clear window, drew big crowds on the conference floor. On Day 2 of the show, META was the most talked about brand at CES according to social media trend tracker BuzzRadar.

NANOWEB® is also used to de-ice auto sensors and manufacture antennas and electrochromic lenses for augmented reality and 5G reflector films.

The company has 472 active patent documents, of which 292 patents have been granted across all its technologies, the company noted.

Ownership and Share Structure

About 15% of META is held by management and insiders, according to Yahoo Finance. Among them is President and Chief Executive Officer George Palikaras, who owns 8.3% or 29.9 million shares, Reuters reported.

Yahoo said about 11% of the company is held by institutions. Some of the top holders are State Street Global Advisors (US) with 4% or 14.49 million shares, and Nova Scotia Innovation Corp. with 3.45% or 12.5 million shares, according to Reuters.

The rest, 74%, is retail.

The company has a market cap of $242.6 million with 362.2 million shares outstanding, and 307.5 million free-floating. It trades in a 52-week range of US$2.34 and US$0.63.

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