Future of Meta Materials in Doubt

The materials and nanotechnology specialist Meta Materials – which acquired the security features company Nanotech Security Corp in 2021 – has announced a workforce reduction of 80%. It is understood that most of the workforce of over 100 has already been let go.

The company is also pursuing a number of strategic options for the business, including the sale of assets, additional financing or the sale of the company, stating that without an influx of cash to support operations, it faces financial hardship that may result in shuttering facilities and/or bankruptcy proceedings.

An indication that the company was in financial difficulties came last year when, accompanying the announcement of its 2022 results and increasing losses, it raised ‘substantial doubt’ about its ability to continue as a going concern. It cited its main problems as being cash burn and over-reliance on one part of the business, namely Nanotech.

It subsequently put in place a Realignment and Consolidation Plan, involving a concentration on three core, and productive, areas – Photonic Materials (under a newly-created Banknote & Authentication business line), Electro Optics and Battery Materials. The plan also included the spin-off a number of other business lines, a reduction in overheads and the elimination of non-essential workforce, in an effort to save c. $20-30 million per year.