Meta Materials Releases Board Letter to Shareholders - Seite 2

We believe revenue generation is the root of all successful businesses and happy shareholders, noting the limited progress while under George's tenure. This was most accurately reflected by the earnings reports over the past two years, as capital was broadly allocated to R&D over sales and marketing.

Due to the capital-intensive nature of R&D (which snowballed during George's time as CEO), META experienced increased fund flow requirements. The unpopular recent registered direct offering on December 4, 2023, was a direct byproduct.

The Board requested that a professional with revenue-generation acumen join META as the new CEO to commercialize/sell this cutting-edge technology. We hoped George would continue in the company in a role that allowed him to apply laser focus to his strengths in technology. However, we spent the next six days trying to persuade George to stay with the company in other key roles, namely Chief Technology Officer and Chief Strategy Officer; however, George rejected these positions, and others we suggested over that time period. No compromise was accepted over six days of appeals, resulting in his departure on October 16, 2023. Recorded board minutes and the Company's public filings validate this sequence of events.

A number of lawsuits related to the reverse merger under George's tenure also escalated the need for transition. The Board's responsibility to the company's financial viability and to its shareholders had to supersede all else.

RDO:
The RDO was a necessary move for additional funding (as detailed above), as we enter the final stages of product commercialization and META business restructuring. We understand and respect the frustrations with this decision, which we did not make lightly, but best positions the company toward profitability.

Our new management, under the guidance of experienced public-company CEO Uzi Sasson, understands the specific steps that need to occur to grow this terrific company. Those steps are solid, and they are already underway. We must focus on sales, and we must do so in an ethical way.

REVERSE SPLIT:
The reverse stock split headlines the agenda for the upcoming shareholder meeting; we have appealed to you to consider the R/S in order to avoid delisting META from the Nasdaq. Share liquidity would likely plummet in an OTC market, making it even more difficult for shareholders to recover prior losses. As a Nasdaq-listed company, META and its loyal shareholders like you may have an avenue to recover.