CES Highlights Product Offerings and Boosts Market Exposure; Look for Production Contract Catalyst in 2023



KEY POINTS
  • META Materials had a large presence at the Consumer Electronics Show (CES) earlier this month, with a booth in the North Hall, in the APMA booth in the West Hall, and in the Innovation Awards Showcase at the Venetian. It also participated in the ShowStoppers @ CES 2023 technology showcase for the media.
  • META among the most talked about companies at CES. According to BuzzRadar, META was the #1 most talked about brand on Day 2 of CES, surpassing well-known companies such as Lenovo, BMW, and Sony.
  • While exposure and product buzz alone are not enough to move the stock, we do expect they can add momentum to any contract announcements. We continue to expect that META will announce at least one production contract this year, delivering a major milestone in the company’s growth of commercial revenues and a significant catalyst for the shares.
  • Show highlighted NANOWEB® as a platform technology. META was able to exhibit NANOWEB in use across multiple products and end-markets. NANOWEB Transparent EMI Shielding Film used in a microwave door was named a CES® 2023 Innovation Awards Honoree and garnered considerable media attention, while the NANOWEB used in deicing and defogging for automotive sensors covers (LIDAR/RADAR, etc.) also drew significant interest. META was also able to display its NANOWEB 5G reflector technology, which it is working on with Sekisui Chemical.
  • CES also highlighted META’s EV-related products, the NPORE® nanocomposite ceramic battery separator, and the current collectors that reduce copper usage and improve safety, which were on display in META’s booth and incorporated in the Project Arrow concept EV on display at CES. We view the battery market as the largest of META’s addressable end-markets.
OUR INSIGHTS

The Opportunities

META is at the early stage of what we expect will be a significant growth curve as its technologies are incorporated into many of today’s products in a range of industries. The company’s growing portfolio of technologies, along with its production capabilities, partnerships, and deep patent portfolio, give META a competitive advantage as it works to penetrate addressable markets that are collectively well in excess of $50 billion.

The Obstacles

META is an early-stage company with limited commercial sales and considerable spending needs as it commercializes its products. In addition to the challenges of bringing new technologies from the lab to commercialization, it is likely that the company will need additional capital in the coming years. However, we expect any capital raise will be tied to significant future growth opportunities.

META Materials had a large presence at the Consumer Electronics Show (CES) earlier this month, with a booth in the North Hall, in the APMA booth in the West Hall, and in the Innovation Awards Showcase at the Venetian. It also participated in the ShowStoppers @ CES 2023 technology showcase for the media.

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