The Meta Materials Fraud Explained

In this video we look at the interesting story of Meta Materials, a penny stock company whose former CEO now faces fraud charges from the SEC. The charges relate to an apparent short squeeze the company's stock experienced in 2021.



#Wallstreetmillennial #shortsqueeze

––––––––––––––––––––––––––––––
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
––––––––––––––––––––––––––––––

0:00 - 2:25 Intro
2:26 - 7:40 The merger
7:41 - 10:54 Promoting the merger
10:55 Meta Materials

[Obiterarbiter]

I'm so proud to see some Canadian representation on this channel.

[JeremyFacer]

Yes we’re a nano material company using AI leveraged web3 blockchain frameworks.

[michaelramon]

Oh, hey, it's not a SPAC - it's something sketchier than a SPAC!

[rileyh]

"Nano-materials" is in the same ballpark as "blockchain" and "AI".

[wolfengod]

Issuing a non-tradable preferred share was actually pretty clever. Definitely not ethical, and clearly stock market manipulation but what an absolute move.

[tgj]

Passwords in cloud is garbage, but if you have to use KeePass or something similar and a cloud drive that way you maintain some semblance of control.

[Derpy]

I love how the graph forms a middle finger to shorts.

[jordansme]

Such a criminal fraud so many people were lied to about and when trch switched the rug was pulled. I thankfully made enough on calls on the way up to not be a big loss but wow what a blatant crime..

[wouldntyouliketoknow]

Honestly this sounds like a clever bit of financial engineering, but like all clever plans sometimes they just don't work out. I didnt hear anything that sounded like fraud. They made a series of legal moves intended to benefit their share holders. Thats probably the best fiduciary option for companies that have no hope of profiting from operations. Unwinding in this fashion is better for share holders than bankruptcy

[raylopez]

Georgios Palikaras seems like a very Greek name. From my limited understanding of Greek, it translates to "George Nice-Lad" since Pakikaras is Greek for "Nice Lad". Could not be further from the truth apparently. Let me quickly Google it to see if the Lad has any plausible defenses. OMG!! no. No and no. The SEC will IMO lose this one (and LOL they are trying to defend, indirectly, shorts?). They are trying to allege there's a "fair value" (see "artificially raise" below) that Palikaras et al violated. This is (from my limited understanding of how securities law works; I'm not a securities lawyer but have kept up with some of this stuff) very hard to prove. I predict the SEC will lose at trial, if the defendants have the resources to fight (and it's sometimes hard to fight City Hall). Palikaras is a good lad after all.

From the SEC website: "The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, alleges that Brda and Palikaras planned and conducted the manipulative scheme that included, among other things, issuing a preferred stock dividend immediately before the merger. The complaint alleges that Brda and Palikaras told certain investors and consultants—and hinted via social media—that the dividend would force short sellers to exit their positions and trigger a “short squeeze” that would artificially raise the price of the company’s common stock. The SEC further alleges that Brda and Palikaras also misrepresented the company’s efforts to sell its oil and gas assets and distribute proceeds to preferred stockholders, giving investors a false impression of the value of the dividend. While investors held or bought the company’s common stock to receive the dividend, the complaint alleges, the company was cashing in by selling $137.5 million in an ATM offering at prices that the company, Brda, and Palikaras knew were temporarily inflated by their manipulative scheme. “We have two days, ” the complaint alleges Brda told Palikaras after the first day of the ATM offering, “to take advantage of the squeeze...”

[THEZMX]

Absolutely terrifying....the more videos i watch about stock markets and economic tides the more i realize it's all just a game.

"Company A can do a short squeeze by completing a reverse merger and stock split" makes about as much sense to me as

"Collect all the Yellow Gems to unlock Super Strength and crush the Goblin Boss"

[BoneyardLabs]

You didn’t talk about the FINRA hault that prevented shorts from covering and longs to sell?!

[moofymoo]

11:17 - is that a quote from Wolf of Wallstreet?

[mr.g]

11:55 Isn't that literally their duty to do so?

[brendanquinn]

A fool and his money were lucky enough to get together in the first place !

[hardyea]

Thank god someone is exposing this fraud.

[hume]

The SEC are going after these small fish and leaving all the medium and large fish alone. What did Brda and Palikaras do that every other institution hasn't done before them? The whole market is a hot bed of fraud.

[aqualust]

My faith in penny stocks was shattered with this one. Never again, only investing in those too big to fail and destined to grow.

[lanceresspd]

You should do a video on Nuburu stock. Maybe you can dig up some dirt.

[Clickbait]

Wall Street millennial:
“Hey, ChatGPT explain the Meta materials fraud.”