CSE:MMAT MAY2021 - Metamaterial ...
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CSE:MMAT MAY 2021
Forward Looking Statements
This Presentation includes forward-looking information within the proposed transaction with Torchlight Energy Resources Inc.,
meaning of Canadian securities laws and within the meaning of approval of the transaction and continued listing by the NASDAQ
Section 21E of the Securities Exchange Act of 1934, as amended, exchange, approval of the Canadian Securities Exchange, receipt of
regarding Metamaterial and its business, which may include, but are shareholder approval by the shareholders of Torchlight and required
not limited to, statements with respect to the terms and anticipated third party and regulatory consents, the potential benefits of the
timing of the proposed transaction with Torchlight Energy Resources transaction to Metamaterial shareholders, risks related to the
Inc., the potential continued listing of Torchlight on the NASDAQ research and development projects of the Company, risks related to
exchange and the benefits thereof, the approval of the Transaction the market potential of the Company’s products, risks related to the
by the shareholders of Torchlight, the business strategies, product investment priorities and manufacturing plans of the Company, risks
development and operational activities of Metamaterial. Often but related to the scalability of the Company’s production ability, risks
not always, forward-looking information can be identified by the use related to the technology industry, market strategic and operational
of words such as “expect”, “intends”, “anticipated”, “believes” or activities, and management’s ability to manage and to operate the
variations (including negative variations) of such words and phrases, business. Although Metamaterial has attempted to identify important
or state that certain actions, events or results “may”, “could”, “would” factors that could cause actual actions, events or results to differ
or “will” be taken, occur or be achieved. Such statements are based materially from those described in forward-looking statements, there
on the current expectations and views of future events of the may be other factors that cause actions, events or results to differ
management of Metamaterial and are based on assumptions and from those anticipated, estimated or intended. Accordingly, readers
subject to risks and uncertainties. Although the management of should not place undue reliance on any forward-looking statements
Metamaterial believes that the assumptions underlying these or information. No forward-looking statement can be guaranteed.
statements are reasonable, they may prove to be incorrect. The Except as required by applicable securities laws, forward-looking
forward-looking events and circumstances discussed in this release statements speak only as of the date on which they are made and
may not occur and could differ materially as a result of known and Metamaterial does not undertake any obligation to publicly update or
unknown risk factors and uncertainties affecting the companies, revise any forward looking statement, whether as a result of new
including risks regarding the ability of the parties to close the information, future events, or otherwise.
2
Pending Transaction with Torchlight Energy Resources
▪ Reverse takeover of Torchlight (NASDAQ: TRCH, a U.S.-listed public company) by META (CSE: MMAT, a Canadian-listed
public company), by way of a Plan of Arrangement.
▪ Torchlight’s pre-Arrangement stockholders will own approximately 25.0% of the new combined company post-closing, and
in exchange issue shares of its common stock to holders of META common shares, representing approximately 75.0%
ownership in the combined company, prior to giving effect to any equity financing pursuant to which Torchlight shares are
issued to raise proceeds in excess of U.S. $5M.
▪ Prior to the effective date of the closing of the Arrangement, Torchlight will declare and issue shares of Series A preferred
stock to holders of Torchlight common stock representing 100% of the value of its existing oil and gas assets.
▪ Shares of Series A preferred stock will be unregistered and not freely-tradable.
▪ Preferred stockholders will have the right to receive a cash dividend (on a per preferred share basis) of any net
proceeds received from the sale or disposition of oil and gas assets owned by Torchlight prior to the earlier of (i)
December 31, 2021 or (ii) the date which is six months from the closing of the Arrangement.
▪ During the sale period, the Company may spin off or sell any of the remaining oil and gas assets. Further, the oil and
gas assets will be held in wholly-owned subsidiaries.
▪ Special meeting of TRCH stockholders to be held on June 11, 2021 (virtual format) for stockholders of record May 5, 2021
▪ The current management team at META will operate the combined company post-closing.
3
Solutions for everyday life
META delivers breakthrough performance,
across a range of applications and industries,
by designing, developing and manufacturing
sustainable, highly-functional materials.
4
The Birth of the Digital Age
Almost every great advancement in technology
can be attributed to a breakthrough in material science:
stone age => bronze age => iron age => => => silicon age
Electronics THEN...
Electronics NOW...
In 1956, the Nobel Prize in Physics was awarded jointly to Shockley, Bardeen and Brattain
for their development of the transistor, driven by the discovery of semiconducting
materials and the means to manipulate their properties
5
Enabling the 21st Century “Age of Invisible Materials”
Échelette DOE Blazed binary grating Geometric Phase Mie resonators High performance Light field Concept of META META
(1970’s) (1998) (2001) (2014) (2016) (2019) Invisibility (2020) (2020)
Laboratory Scale Production Scale
What are Metamaterials? The META Advantage
▪ Metamaterials control on demand unique functional ▪ SPEED - META uses AI software to design a library of
properties in absorption, emission, sensing, transmission, patterns for different applications, it typically develops
and guiding of light, sound, energy, and heat, as well as new custom solutions within hours vs months
friction, strength, and electric energy ▪ SCALE - META is one of the first companies to develop
▪ Metamaterials are typically created by patterning proprietary roll-to-roll production equipment to
composite and nanomaterials (e.g. metals, dielectrics etc.) produce large area, high volume nanocomposites
▪ Until recently, development has taken place only at the ▪ COST - Increasing the roll-to-roll web width and line
laboratory scale on very small substrates speed should drive costs down to a few $/m2
6
Market Opportunity Driven by Several Megatrends
▪ 5G Infrastructure:
rollout requires new materials for
Metamaterials Market Forecast
transparent antennas and reflectors US$ Millions (Source: LUX Research)
▪ Vehicle Electrification: $12,000
seismic shift toward EV, ADAS (advanced driver $10,000
assistance systems) and autonomous vehicles $8,000
▪ Combined >$3T in Other Verticals: $6,000
Advanced Materials, IoT, Medical, Energy, $4,000
Aerospace and Automotive markets $2,000
▪ Scarcity, Control of Raw Materials: $0
supply of rare earths and materials such as ITO
(Indium Tin Oxide) highly concentrated in Asia Communications Sensing Vibration damping Other
▪ Metamaterial Device Market:
expected to grow to $10.7B SAM by 2030
Source: Lux Research, n-tech Research, BCC Research, Deloitte, internal META estimate
7
Transparent Passive 5G Reflector
Transparent Window Film Transforms Outdoor 5G Coverage
PROBLEM:
Highest-speed 5G signals need
line of sight, requiring placement
of many small cells
SOLUTION:
META’s passive transparent
window film reflects signal to Transparent
cover dead zones Window Film
MEGA TREND:
Carriers are spending $ Billions
on Infrastructure
8
Invisible Antenna Enhances Indoor 5G and Digital TV Reception
Window Film Enhances Signal Penetration Through Glass
PROBLEM:
5G signals don’t penetrate glass,
buildings, requiring installation
of internal networks
SOLUTION:
META’s passive transparent
window film passes through 5G
and Digital TV signals
9
LIDAR Protection: De-Ice/De-Fog + EMI Shielding
Nano-Heater to Protect Sensors Transparent to RADAR and LIDAR Simultaneously
PROBLEM:
ADAS and Autonomous vehicles
depend on an array of cameras and
sensors to “see” and understand
their surroundings
SOLUTION:
META NANOWEB® transparent
conductive film provides deicing
and defogging without blocking
the camera/sensor functions
10NANOWEB®: Transparent Sensors and 5G Antennas
META Transparent 5G Antenna
COMPETITIVE ADVANTAGES
▪ META’s lithography capability enables fabrication of sensors &
antennas completely invisible to the human eye
▪ META’s touch sensors and transparent
5G antennas can be integrated into smartphone displays, on
windows of vehicles or buildings and home appliances
▪ NANOWEB® is flexible - unlike the incumbent ITO (Indium Tin
Oxide) technology – enabling sensors on foldable phones
▪ META’s antennas can operate from low to high frequencies (3G,
5G/6G and beyond) and provide communication systems for
conventional, EV and autonomous vehicles
11Solar Energy – Lighter Weight, Higher Efficiency
Ultra-Thin, Light and Flexible Increases Solar Cell Efficiency
- Ideal for the transportation industry - Traps light that would otherwise be
- Adds onboard power, charging reflected, increases absorption
Over $5Bn of Total Addressable Market
Angular Absorption Scalable
- Captures sunlight from all angles - Can be sized for small or large areas
- Eliminates costly tracking systems - Applied to flat or curved surfaces
Source: Internal META estimates
12metaFUSION™ Integrates AR with Prescription Lenses
• metaFUSION™ integrates optical elements for AR
(augmented reality) combined with lens casting
technology developed by Interglass Technology AG
• META acquired assets & IP of Swiss lens manufacturer
Interglass, 35 patents, trademarks and trade secrets,
proprietary software and designs
• High volume fully automated lens casting,
workstations, tools, test equipment, and technical data
• Proprietary specialty materials/foils supply
in cooperation with Covestro AG
• Just-in-time production of prescription lenses and
embedded elements such as optical combiners,
waveguides, and eye tracking sensors $1.5B
• Highly Sustainable Process: Augmented
• Less energy (10 sec vs 50 hours curing time) Reality Eyewear
• Zero water usage
Market
• Less material usage Source: BCC Research
13Medical Applications: Mid- to Long-Term (2-7yrs) Potential
Functional metamaterials for Health and Wellness market – Licensing/Project Financing opportunities
Image Enhancement Sensor enhancement
MRI Medical Imaging Early-Stage Breast Cancer Non-Invasive Glucometer Molecular Biosensor
MRI Imaging with Screening Dual Sensor mm-wave technology with Daily use Bio-photonic sensor with
metamaterial film metamaterial film (www.gluco-wise.com) sensitivity and performance enhanced
Radio-wave Imaging for breast using nanomaterial to meet
screening with metamaterial film rising demand for point of care testing.
MARKET POTENTIAL* MARKET POTENTIAL* MARKET POTENTIAL* MARKET POTENTIAL*
$2.0+B $4.0+B $15.0+B $10.0+B
*Source: Internal META estimates 14Solving Global Challenges Together With
OEM Partners And Customers
Select Targeted Co-Development Partners and Customers in
Automotive, Medical, Aerospace & Defense, Consumer Electronics and Energy
15
15Advanced Materials Competitive Landscape
Existing META relationships
Source: LUX Research and Internal META estimates
16Intellectual Property & Know-How
T te t ilies re o
• META has 140 filed patents (76 granted) across ther ologr ph
44 patent families (28 granted)
e s s g
• 5 registered trademarks
• Proprietary, custom manufacturing processes
and trade secrets, developed over 10 years
with multi-million $ investment
ol r
• Processes and methods were patented early,
providing multi-year competitive advantage
Source: META IP Portfolio - Last updated April 19th 2021
17Executive Team
George Palikaris, Ph. D. Kenneth Rice, MBA, JD, LLM
President and CEO, Founder Chief Financial Officer & EVP
12 years in leadership positions of high-tech 30+ years experience, public and private
startups. Goldman Sachs (10KSB), MIT company CFO, in-house counsel,
Enterprise and EY awards for operations, and corporate development
entrepreneurship, Stanford, Harvard, INSEAD executive in technology and life sciences
Exec Ed. 50+ patents, 3 industry awards.
Jonathan Waldern, Ph. D. Gardner Wade
Chief Technology Officer Chief Product Officer
25 years experience in 20+ years in managing development
commercialization of holographic and engineering of high-definition optical
lithographic/nanomaterials for eyewear for global brands in military, flight
photonic applications, inventor and and performance sports applications
visionary with 140+ patents
Themos Kallos, Ph. D. Scott Richards
Chief Science Officer, Co-Founder Chief Marketing Officer
10 years experience in applied physics, 20+ years in management consulting and
intellectual property development in marketing services, CEO, CMO, COO,
metamaterial applications, 40+ filed strategic planning, and M&A, in Canada,
patents and 50+ publications the Caribbean, the UAE, and the U.S.
18Investment Priorities 2021-2022
Initial roll-to-roll production equipment:
operational year-end 2021 to mid-2022
1. Acquire and launch Pilot Scale
roll-to-roll functional film production
capability, estimated $10M CAPEX
2. Customer Center including META’s
pilot line, to license, train and sell
duplicates internationally
3. Healthcare and Wellness applications
led by current customer engagements, Expansion equipment and clean room labs:
estimated spending $3M operational 4Q21 to 2Q22
4. Applied R&D, increased headcount,
estimated spending $3M
19Scalable Revenue and Business Model
Design, Test Samples Wafer Scale Validation R2R Licensed Pilot Line Multiple Revenue
Streams
Design Verification Performance Validation Production at Scale Revenue Streams
• Produce samples • Complete • Cost model validation with 1. License Fee
to customer spec Phase 2 NRE customer 2. Master-Supply
• Test samples • Produce Beta lot for • Produce pilot scale lot for 3. Royalties
4. Equipment Supply
• Scope proposal for customer use customer use 5. Raw Material Supply
Phase 2 NRE • Pilot scale production • Commercial scale license Agreement
(Funded R&D) contract and scope and material supply 6. Service NRE contract
agreement (META owns IP)
20Selected Financial Highlights – Q1:21 (CAD)
This information should be read in conjunction with the complete financial statements and the associated management discussion and analysis,
available on the Investors section of our website at www.metamaterial.com, as well as under the Company’s profile on SEDAR at www.sedar.com
21Capitalization
CAPITALIZATION
DESCRIPTION (As of 05/31/21)
Common Shares Issued & Outstanding 105,645,939
Stock Options 13,034,257
Deferred Share Units 1,872,750
Warrants 1,606,855
Broker Warrants 19,619
Unsecured Convertible Promissory Notes 7,219,797
Total Shares Issued & Outstanding (Fully Diluted) 129,399,217
22Leading the NEXT AGE of “invisible"
highly functional metamaterials
Growth
Software driven Global
simulation tools Partnerships NASDAQ’s first ever
metamaterials company
Established & – 1st mover advantage
Broad and
De-risked Tech
Growing IP
Estate Platform Access to Non-dilutive
OEM government funding
and Fortune 500 provides significant
IP companies, from match of equity and/or
diverse industries debt financing
Proprietary provide direction,
Team Manufacturing & funding and
Design Platform ready outlets for
Multinational our novel products
Subject Matter with multiple
Experts Scalable & Sustainable potential revenue
Products streams
23Mark Komonoski
Investor Relations
T: 877-255-8483
E: mark@metamaterial.com
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